Private companies invested in Matsumoto Yushi-Seiyaku Co.,Ltd. (TSE:4365) up 13% last week, insiders too were rewarded

Key Insights

• Matsumoto Yushi-SeiyakuLtd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 5 shareholders own 54% of the company
• Insider ownership in Matsumoto Yushi-SeiyakuLtd is 27%

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If you want to know who really controls Matsumoto Yushi-Seiyaku Co.,Ltd. (TSE:4365), then you'll have to look at the makeup of its share registry. With 44% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 13% increase in the stock price last week, private companies profited the most, but insiders who own 27% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Matsumoto Yushi-SeiyakuLtd, beginning with the chart below.

Check out our latest analysis for Matsumoto Yushi-SeiyakuLtd

What Does The Institutional Ownership Tell Us About Matsumoto Yushi-SeiyakuLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Matsumoto Yushi-SeiyakuLtd does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Matsumoto Yushi-SeiyakuLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Matsumoto Yushi-SeiyakuLtd. Looking at our data, we can see that the largest shareholder is Matsumoto Kosan Co., Ltd. with 23% of shares outstanding. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 10% by the third-largest shareholder. Furthermore, CEO Naoki Kimura is the owner of 4.6% of the company's shares.

On looking further, we found that 54% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Matsumoto Yushi-SeiyakuLtd

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Matsumoto Yushi-Seiyaku Co.,Ltd.. It has a market capitalization of just JP¥60b, and insiders have JP¥16b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Matsumoto Yushi-SeiyakuLtd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 44%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Matsumoto Yushi-SeiyakuLtd better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.