PeptiDream Inc.'s (TSE:4587) top owners are retail investors with 39% stake, while 30% is held by institutions

Key Insights

• Significant control over PeptiDream by retail investors implies that the general public has more power to influence management and governance-related decisions
• 52% of the business is held by the top 12 shareholders
• Insider ownership in PeptiDream is 26%

If you want to know who really controls PeptiDream Inc. (TSE:4587), then you'll have to look at the makeup of its share registry. With 39% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutions, on the other hand, account for 30% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.

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

See our latest analysis for PeptiDream

What Does The Institutional Ownership Tell Us About PeptiDream?

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.

As you can see, institutional investors have a fair amount of stake in PeptiDream. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of PeptiDream, (below). Of course, keep in mind that there are other factors to consider, too.

Our data indicates that hedge funds own 5.1% of PeptiDream. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Looking at our data, we can see that the largest shareholder is Kiichi Kubota with 10% of shares outstanding. Hiroaki Suga is the second largest shareholder owning 9.2% of common stock, and Taiyo Pacific Partners L.P. holds about 5.1% of the company 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 12 have the combined ownership of 52% 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 information suggests that insiders maintain a significant holding in PeptiDream Inc.. Insiders own JP¥84b worth of shares in the JP¥320b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 39% stake in the company, and hence can't easily be ignored. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand PeptiDream better, we need to consider many other factors. For example, we've discovered 3 warning signs for PeptiDream (2 shouldn't be ignored!) that you should be aware of before investing here.

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.