Institutions along with private companies who hold considerable shares inGOLDCREST Co.,Ltd. (TSE:8871) come under pressure; lose 7.7% of holdings value

Key Insights

• The considerable ownership by private companies in GOLDCRESTLtd indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 60% of the company
• Institutions own 24% of GOLDCRESTLtd

If you want to know who really controls GOLDCREST Co.,Ltd. (TSE:8871), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 48% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions who own 24% came under pressure after market cap dropped to JP¥101b last week,private companies took the most losses.

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

View our latest analysis for GOLDCRESTLtd

What Does The Institutional Ownership Tell Us About GOLDCRESTLtd?

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.

We can see that GOLDCRESTLtd does have institutional investors; and they hold a good portion of the company's stock. 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 GOLDCRESTLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in GOLDCRESTLtd. Looking at our data, we can see that the largest shareholder is Mu Asset Co., Ltd. with 47% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 13% and 8.1%, of the shares outstanding, respectively. In addition, we found that Hidetoshi Yasukawa, the CEO has 3.1% of the shares allocated to their name.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of GOLDCRESTLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Shareholders would probably be interested to learn that insiders own shares in GOLDCREST Co.,Ltd.. In their own names, insiders own JP¥3.3b worth of stock in the JP¥101b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 12% stake in GOLDCRESTLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 13%, private equity firms could influence the GOLDCRESTLtd board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

Our data indicates that Private Companies hold 48%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. For instance, we've identified 1 warning sign for GOLDCRESTLtd that 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.