Institutional investors must be pleased after a 4.7% gain last week that adds to PeptiDream Inc.'s (TSE:4587) one-year returns

Key Insights

• Institutions' substantial holdings in PeptiDream implies that they have significant influence over the company's share price
• The top 11 shareholders own 51% of the company
• Insiders own 26% of PeptiDream

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To get a sense of who is truly in control of PeptiDream Inc. (TSE:4587), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 38% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).

Last week’s 4.7% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 1.2% and last week's gain would have been more than welcomed.

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

View our latest analysis for PeptiDream

What Does The Institutional Ownership Tell Us About PeptiDream?

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.

As you can see, institutional investors have a fair amount of stake in PeptiDream. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at PeptiDream's earnings history below. Of course, the future is what really matters.

PeptiDream is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Kiichi Kubota with 9.5% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.1% and 4.8% of the stock. In addition, we found that Patrick Crawford Reid, the CEO has 3.3% of the shares allocated to their name.

After doing some more digging, we found that the top 11 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of PeptiDream

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.

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 PeptiDream Inc.. It is very interesting to see that insiders have a meaningful JP¥67b stake in this JP¥262b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 36% stake in PeptiDream. 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for PeptiDream you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.