The recent 10.0% gain must have brightened CEO Masamichi Iino's week, GDEP ADVANCE,Inc.'s (TSE:5885) most bullish insider

Key Insights

• GDEP ADVANCEInc's significant insider ownership suggests inherent interests in company's expansion
• 64% of the company is held by a single shareholder (Masamichi Iino)
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

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A look at the shareholders of GDEP ADVANCE,Inc. (TSE:5885) can tell us which group is most powerful. The group holding the most number of shares in the company, around 65% 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 were the biggest beneficiaries of last week’s 10.0% gain.

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

View our latest analysis for GDEP ADVANCEInc

What Does The Institutional Ownership Tell Us About GDEP ADVANCEInc?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Since institutions own only a small portion of GDEP ADVANCEInc, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in GDEP ADVANCEInc. Looking at our data, we can see that the largest shareholder is the CEO Masamichi Iino with 64% 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. Nomura Asset Management Co., Ltd. is the second largest shareholder owning 4.2% of common stock, and Tatsuo Ohashi holds about 1.0% of the company stock. Interestingly, the third-largest shareholder, Tatsuo Ohashi is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of GDEP ADVANCEInc

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.

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 insiders own more than half of GDEP ADVANCE,Inc.. This gives them effective control of the company. That means they own JP¥11b worth of shares in the JP¥17b company. That's quite meaningful. 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

The general public-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. 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.

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 GDEP ADVANCEInc you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free 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.