Individual investors own 27% of Canon Marketing Japan Inc. (TSE:8060) shares but public companies control 51% of the company

Key Insights

• The considerable ownership by public companies in Canon Marketing Japan indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Canon Inc. with a 51% stake
• 15% of Canon Marketing Japan is held by Institutions

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Every investor in Canon Marketing Japan Inc. (TSE:8060) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 51% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 27% ownership in the company.

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

See our latest analysis for Canon Marketing Japan

What Does The Institutional Ownership Tell Us About Canon Marketing Japan?

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.

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

Hedge funds don't have many shares in Canon Marketing Japan. Canon Inc. is currently the largest shareholder, with 51% of shares outstanding. This implies that they have majority interest control of the future of the company. Canon Marketing Japan Inc., ESOP is the second largest shareholder owning 4.7% of common stock, and Nomura Asset Management Co., Ltd. holds about 1.8% of the company stock.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Canon Marketing Japan

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our information suggests that Canon Marketing Japan Inc. insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own JP¥638m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Canon Marketing Japan. 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.

Public Company Ownership

We can see that public companies hold 51% of the Canon Marketing Japan shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. To that end, you should be aware of the 1 warning sign we've spotted with Canon Marketing Japan .

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.