individual investors who own 47% along with institutions invested in Isetan Mitsukoshi Holdings Ltd. (TSE:3099) saw increase in their holdings value last week

Key Insights

• Significant control over Isetan Mitsukoshi Holdings by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 20 shareholders own 50% of the company
• 45% of Isetan Mitsukoshi Holdings is held by Institutions

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Every investor in Isetan Mitsukoshi Holdings Ltd. (TSE:3099) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 4.8% increase in the stock price last week, individual investors profited the most, but institutions who own 45% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Isetan Mitsukoshi Holdings, beginning with the chart below.

See our latest analysis for Isetan Mitsukoshi Holdings

What Does The Institutional Ownership Tell Us About Isetan Mitsukoshi Holdings?

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 Isetan Mitsukoshi Holdings. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Isetan Mitsukoshi Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

Isetan Mitsukoshi Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Nomura Asset Management Co., Ltd. with 7.9% of shares outstanding. T. Rowe Price Group, Inc. is the second largest shareholder owning 7.7% of common stock, and Sumitomo Mitsui Trust Asset Management Co., Ltd. holds about 4.0% of the company stock.

A closer look at our ownership figures suggests that the top 20 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Isetan Mitsukoshi Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 less than 1% of Isetan Mitsukoshi Holdings Ltd.. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around JP¥636m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Isetan Mitsukoshi Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Isetan Mitsukoshi Holdings 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.