Kohoku Kogyo CO.,LTD. (TSE:6524) CEO Futoshi Ishii, the company's largest shareholder sees 15% reduction in holdings value

Key Insights

• Kohoku KogyoLTD's significant insider ownership suggests inherent interests in company's expansion
• Futoshi Ishii owns 64% of the company
• Institutional ownership in Kohoku KogyoLTD is 12%

If you want to know who really controls Kohoku Kogyo CO.,LTD. (TSE:6524), 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 64% 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.

And last week, insiders endured the biggest losses as the stock fell by 15%.

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

Check out our latest analysis for Kohoku KogyoLTD

What Does The Institutional Ownership Tell Us About Kohoku KogyoLTD?

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.

Kohoku KogyoLTD already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Kohoku KogyoLTD's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Kohoku KogyoLTD. Looking at our data, we can see that the largest shareholder is the CEO Futoshi Ishii with 64% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. Schroder Investment Management (Japan) Ltd. is the second largest shareholder owning 4.6% of common stock, and Baillie Gifford & Co. holds about 3.1% 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. 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 Kohoku KogyoLTD

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.

It seems that insiders own more than half the Kohoku Kogyo CO.,LTD. stock. This gives them a lot of power. Given it has a market cap of JP¥63b, that means they have JP¥41b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 23% 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. Take risks for example - Kohoku KogyoLTD has 1 warning sign we think you should be aware of.

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.