Retail investors account for 43% of Nippon Telegraph and Telephone Corporation's (TSE:9432) ownership, while state or government account for 35%

Key Insights

• The considerable ownership by retail investors in Nippon Telegraph and Telephone indicates that they collectively have a greater say in management and business strategy
• A total of 13 investors have a majority stake in the company with 51% ownership
• Institutions own 19% of Nippon Telegraph and Telephone

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Every investor in Nippon Telegraph and Telephone Corporation (TSE:9432) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

State or government, on the other hand, account for 35% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of Nippon Telegraph and Telephone.

Check out our latest analysis for Nippon Telegraph and Telephone

What Does The Institutional Ownership Tell Us About Nippon Telegraph and Telephone?

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.

As you can see, institutional investors have a fair amount of stake in Nippon Telegraph and Telephone. 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 Nippon Telegraph and Telephone, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Nippon Telegraph and Telephone. Ministry of Finance Japan is currently the company's largest shareholder with 35% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.8% and 2.4%, of the shares outstanding, respectively.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Nippon Telegraph and Telephone

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 most recent data indicates that insiders own less than 1% of Nippon Telegraph and Telephone Corporation. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own JP¥475m of stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 43% stake in Nippon Telegraph and Telephone. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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 2 warning signs for Nippon Telegraph and Telephone you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.