Retail investors who have a significant stake must be disappointed along with institutions after Micronics Japan Co., Ltd.'s (TSE:6871) market cap dropped by JP¥8.7b

Key Insights

• Micronics Japan's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 18 shareholders own 51% of the company
• 15% of Micronics Japan is held by insiders

Every investor in Micronics Japan Co., Ltd. (TSE:6871) should be aware of the most powerful shareholder groups. With 46% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions, who own 35% shares weren’t spared from last week’s JP¥8.7b market cap drop, retail investors as a group suffered the maximum losses

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

See our latest analysis for Micronics Japan

What Does The Institutional Ownership Tell Us About Micronics Japan?

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 Micronics Japan. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Micronics Japan, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Micronics Japan. The company's CEO Masayoshi Hasegawa is the largest shareholder with 6.6% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.3% and 4.4% of the stock.

After doing some more digging, we found that the top 18 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Micronics Japan

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.

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 information suggests that insiders maintain a significant holding in Micronics Japan Co., Ltd.. Insiders own JP¥22b worth of shares in the JP¥142b 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 46% stake in Micronics Japan. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Micronics Japan , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.