CEO Kenji Ito, SpiderPlus & Co.'s (TSE:4192) largest shareholder sees value of holdings go down 12% after recent drop

Key Insights

• SpiderPlus' significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Kenji Ito with a 53% stake
• Institutional ownership in SpiderPlus is 18%

Every investor in SpiderPlus & Co. (TSE:4192) should be aware of the most powerful shareholder groups. With 59% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 12% decline in share price, insiders suffered the most losses.

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

Check out our latest analysis for SpiderPlus

What Does The Institutional Ownership Tell Us About SpiderPlus?

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 SpiderPlus 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at SpiderPlus' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in SpiderPlus. Looking at our data, we can see that the largest shareholder is the CEO Kenji Ito with 53% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. Baillie Gifford & Co. is the second largest shareholder owning 6.5% of common stock, and Joho Capital, L.L.C. holds about 4.9% of the company stock.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of SpiderPlus

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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 most recent data indicates that insiders own the majority of SpiderPlus & Co.. This means they can collectively make decisions for the company. So they have a JP¥12b stake in this JP¥20b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SpiderPlus. 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 SpiderPlus better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for SpiderPlus you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.