Insiders are the top stockholders in Sun Frontier Fudousan Co., Ltd. (TSE:8934), and the recent 6.3% drop might have disappointed them

Key Insights

• Insiders appear to have a vested interest in Sun Frontier Fudousan's growth, as seen by their sizeable ownership
• A total of 5 investors have a majority stake in the company with 51% ownership
• 13% of Sun Frontier Fudousan is held by Institutions

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Every investor in Sun Frontier Fudousan Co., Ltd. (TSE:8934) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 45% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 6.3%.

In the chart below, we zoom in on the different ownership groups of Sun Frontier Fudousan.

View our latest analysis for Sun Frontier Fudousan

What Does The Institutional Ownership Tell Us About Sun Frontier Fudousan?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Sun Frontier Fudousan does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Sun Frontier Fudousan, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Sun Frontier Fudousan. Tomoaki Horiguchi is currently the company's largest shareholder with 44% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 2.3% of common stock, and Nomura Asset Management Co., Ltd. holds about 2.1% of the company stock.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Sun Frontier Fudousan

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Sun Frontier Fudousan Co., Ltd.. Insiders own JP¥49b worth of shares in the JP¥111b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in Sun Frontier Fudousan. 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 Sun Frontier Fudousan better, we need to consider many other factors. Take risks for example - Sun Frontier Fudousan has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.