Public companies among Nippon Sanso Holdings Corporation's (TSE:4091) largest stockholders and were hit after last week's 4.1% price drop

Key Insights

• Significant control over Nippon Sanso Holdings by public companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Mitsubishi Chemical Group Corporation with a 51% stake
• 21% of Nippon Sanso Holdings is held by Institutions

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A look at the shareholders of Nippon Sanso Holdings Corporation (TSE:4091) can tell us which group is most powerful. With 51% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 4.1% decline in share price, public companies suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Nippon Sanso Holdings.

See our latest analysis for Nippon Sanso Holdings

What Does The Institutional Ownership Tell Us About Nippon Sanso Holdings?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Nippon Sanso Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Nippon Sanso Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

Nippon Sanso Holdings is not owned by hedge funds. Our data shows that Mitsubishi Chemical Group Corporation is the largest shareholder with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Nippon Sanso Holdings Corporation, Client Stock Ownership Association is the second largest shareholder owning 3.6% of common stock, and Meiji Yasuda Life Insurance Company, Asset Management Arm holds about 2.1% of the company stock.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Nippon Sanso Holdings

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own under 1% of Nippon Sanso Holdings Corporation in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own JP¥183m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

We can see that public companies hold 51% of the Nippon Sanso Holdings shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Nippon Sanso Holdings is showing 1 warning sign in our investment analysis , you should know about...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.