Nissan Tokyo Sales Holdings Co., Ltd.'s (TSE:8291) last week's 10% decline must have disappointed public companies who have a significant stake

Key Insights

• The considerable ownership by public companies in Nissan Tokyo Sales Holdings indicates that they collectively have a greater say in management and business strategy
• 52% of the business is held by the top 6 shareholders
• 16% of Nissan Tokyo Sales Holdings is held by Institutions

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Every investor in Nissan Tokyo Sales Holdings Co., Ltd. (TSE:8291) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, public companies endured the biggest losses as the stock fell by 10%.

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

See our latest analysis for Nissan Tokyo Sales Holdings

What Does The Institutional Ownership Tell Us About Nissan Tokyo Sales Holdings?

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.

As you can see, institutional investors have a fair amount of stake in Nissan Tokyo Sales Holdings. 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 Nissan Tokyo Sales Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Nissan Tokyo Sales Holdings. Looking at our data, we can see that the largest shareholder is Nissan Motor Co., Ltd. with 38% of shares outstanding. Rising Sun Management Ltd. is the second largest shareholder owning 3.7% of common stock, and Tokio Marine Asset Management Co., Ltd. holds about 3.1% of the company stock.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Nissan Tokyo Sales Holdings

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 data suggests that insiders own under 1% of Nissan Tokyo Sales Holdings Co., Ltd. in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It seems the board members have no more than JP¥50m worth of shares in the JP¥29b company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 38% stake in the company, and hence can't easily be ignored. 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 42% of Nissan Tokyo Sales Holdings stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with Nissan Tokyo Sales Holdings .

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.