NS Solutions Corporation's (TSE:2327) top owners are public companies with 63% stake, while 17% is held by individual investors

Key Insights

• NS Solutions' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 63% of the company is held by a single shareholder (Nippon Steel Corporation)
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in NS Solutions Corporation (TSE:2327) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 63% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual investors make up 17% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of NS Solutions.

Check out our latest analysis for NS Solutions

What Does The Institutional Ownership Tell Us About NS Solutions?

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.

We can see that NS Solutions does have institutional investors; and they hold a good portion of the company's stock. 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 NS Solutions' historic earnings and revenue below, but keep in mind there's always more to the story.

Our data indicates that hedge funds own 8.4% of NS Solutions. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Nippon Steel Corporation is currently the largest shareholder, with 63% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 8.4% and 2.2% of the shares outstanding respectively, 3D Investment Partners Pte. Ltd and NS Solutions Corp. ESOP are the second and third largest shareholders.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of NS Solutions

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

Our information suggests that NS Solutions Corporation insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own JP¥380m worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 17% stake in NS Solutions. 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 63% of NS Solutions 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. Case in point: We've spotted 1 warning sign for NS Solutions you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.