Stock Analysis

individual investors who own 43% along with institutions invested in JADE GROUP,Inc (TSE:3558) saw increase in their holdings value last week

TSE:3558
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Key Insights

  • The considerable ownership by individual investors in JADE GROUPInc indicates that they collectively have a greater say in management and business strategy
  • 51% of the business is held by the top 8 shareholders
  • 15% of JADE GROUPInc is held by insiders

Every investor in JADE GROUP,Inc (TSE:3558) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While individual investors were the group that reaped the most benefits after last week’s 11% price gain, institutions also received a 41% cut.

Let's delve deeper into each type of owner of JADE GROUPInc, beginning with the chart below.

Check out our latest analysis for JADE GROUPInc

ownership-breakdown
TSE:3558 Ownership Breakdown September 24th 2024

What Does The Institutional Ownership Tell Us About JADE GROUPInc?

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 JADE GROUPInc. 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. 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 JADE GROUPInc's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
TSE:3558 Earnings and Revenue Growth September 24th 2024

JADE GROUPInc is not owned by hedge funds. Our data shows that Asset Value Investors Limited is the largest shareholder with 12% of shares outstanding. For context, the second largest shareholder holds about 9.5% of the shares outstanding, followed by an ownership of 6.9% by the third-largest shareholder. Yusuke Tanaka, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of JADE GROUPInc

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.

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 most recent data indicates that insiders own a reasonable proportion of JADE GROUP,Inc. Insiders have a JP¥3.3b stake in this JP¥22b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 43% 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - JADE GROUPInc has 2 warning signs (and 1 which is potentially serious) we think you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.