Plus Alpha Consulting Co.,Ltd.'s (TSE:4071) CEO Katsuya Mimuro is the most upbeat insider, and their holdings increased by 15% last week

Key Insights

• Insiders appear to have a vested interest in Plus Alpha ConsultingLtd's growth, as seen by their sizeable ownership
• The top 3 shareholders own 53% of the company
• 31% of Plus Alpha ConsultingLtd is held by Institutions

We've discovered 1 warning sign about Plus Alpha ConsultingLtd. View them for free.

If you want to know who really controls Plus Alpha Consulting Co.,Ltd. (TSE:4071), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 41% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit JP¥78b market cap following a 15% gain in the stock.

Let's delve deeper into each type of owner of Plus Alpha ConsultingLtd, beginning with the chart below.

See our latest analysis for Plus Alpha ConsultingLtd

What Does The Institutional Ownership Tell Us About Plus Alpha ConsultingLtd?

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.

We can see that Plus Alpha ConsultingLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Plus Alpha ConsultingLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Plus Alpha ConsultingLtd. The company's CEO Katsuya Mimuro is the largest shareholder with 22% of shares outstanding. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 15% by the third-largest shareholder. Interestingly, the second-largest shareholder, Kenji Suzumura is also Head of Human Resources, again, pointing towards 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. 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 Plus Alpha ConsultingLtd

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.

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.

It seems insiders own a significant proportion of Plus Alpha Consulting Co.,Ltd.. Insiders own JP¥32b worth of shares in the JP¥78b 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 13% stake in Plus Alpha ConsultingLtd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With a stake of 15%, private equity firms could influence the Plus Alpha ConsultingLtd board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

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 risks, for instance. Every company has them, and we've spotted 1 warning sign for Plus Alpha ConsultingLtd you should know about.

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.