retail investors who own 48% along with institutions invested in Sumitomo Realty & Development Co., Ltd. (TSE:8830) saw increase in their holdings value last week

Key Insights

• The considerable ownership by retail investors in Sumitomo Realty & Development indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 48% of the company
• 43% of Sumitomo Realty & Development is held by Institutions

A look at the shareholders of Sumitomo Realty & Development Co., Ltd. (TSE:8830) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that benefitted the most from last week’s JP¥157b market cap gain, institutions too had a 43% share in those profits.

In the chart below, we zoom in on the different ownership groups of Sumitomo Realty & Development.

Check out our latest analysis for Sumitomo Realty & Development

What Does The Institutional Ownership Tell Us About Sumitomo Realty & Development?

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.

Sumitomo Realty & Development 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. 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 Sumitomo Realty & Development's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Sumitomo Realty & Development. Our data shows that BlackRock, Inc. is the largest shareholder with 6.6% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.9% and 4.9% of the stock.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Sumitomo Realty & Development

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 Sumitomo Realty & Development Co., Ltd. in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own JP¥1.3b of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 48% stake in Sumitomo Realty & Development. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 7.0% of Sumitomo Realty & Development stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Sumitomo Realty & Development you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.