THine Electronics, Inc. (TSE:6769) surges 12%; individual investors who own 53% shares profited along with insiders

Key Insights

• The considerable ownership by individual investors in THine Electronics indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 12 shareholders
• Insider ownership in THine Electronics is 46%

If you want to know who really controls THine Electronics, Inc. (TSE:6769), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 12% increase in the stock price last week, individual investors profited the most, but insiders who own 46% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of THine Electronics.

Check out our latest analysis for THine Electronics

What Does The Lack Of Institutional Ownership Tell Us About THine Electronics?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of THine Electronics, for yourself, below.

We note that hedge funds don't have a meaningful investment in THine Electronics. With a 39% stake, CEO Tetsuya Iizuka is the largest shareholder. In comparison, the second and third largest shareholders hold about 1.7% and 1.7% of the stock.

A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of THine Electronics

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 THine Electronics, Inc.. It has a market capitalization of just JP¥15b, and insiders have JP¥6.8b worth of shares in their own names. 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 -- including retail investors -- own 53% of THine Electronics. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand THine Electronics better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for THine Electronics you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.