Double Standard Inc.'s (TSE:3925) most bullish insider is CEO Shozo Nakajima, and their holdings value went up by 11% last week

Key Insights

• Significant insider control over Double Standard implies vested interests in company growth
• The top 3 shareholders own 53% of the company
• 29% of Double Standard is held by Institutions

A look at the shareholders of Double Standard Inc. (TSE:3925) can tell us which group is most powerful. The group holding the most number of shares in the company, around 39% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit JP¥24b market cap following a 11% gain in the stock.

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

Check out our latest analysis for Double Standard

What Does The Institutional Ownership Tell Us About Double Standard?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

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

Double Standard is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Shozo Nakajima with 30% of shares outstanding. For context, the second largest shareholder holds about 20% of the shares outstanding, followed by an ownership of 3.7% by the third-largest shareholder. Interestingly, the third-largest shareholder, Yasuhiro Shimizu is also a Chairman of the Board, again, indicating strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of 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. 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 Double Standard

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.

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.

It seems insiders own a significant proportion of Double Standard Inc.. Insiders own JP¥9.2b worth of shares in the JP¥24b 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-- including retail investors -- own 32% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Double Standard better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Double Standard you should know about.

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.