How Much Of Daiichi Koutsu Sangyo Co.,Ltd. (FKSE:9035) Do Insiders Own?

The big shareholder groups in Daiichi Koutsu Sangyo Co.,Ltd. (FKSE:9035) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Daiichi Koutsu SangyoLtd is not a large company by global standards. It has a market capitalization of JP¥21b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Daiichi Koutsu SangyoLtd.

See our latest analysis for Daiichi Koutsu SangyoLtd

What Does The Institutional Ownership Tell Us About Daiichi Koutsu SangyoLtd?

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 Daiichi Koutsu SangyoLtd 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 Daiichi Koutsu SangyoLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Daiichi Koutsu SangyoLtd. Daiichi Management Co., Ltd. is currently the company's largest shareholder with 36% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.8% and 4.0% of the stock. Additionally, the company's CEO Ryoichiro Tanaka directly holds 3.5% of the total shares outstanding.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Daiichi Koutsu SangyoLtd

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 a reasonable proportion of Daiichi Koutsu Sangyo Co.,Ltd.. Insiders own JP¥2.9b worth of shares in the JP¥21b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 31% ownership, the general public have some degree of sway over Daiichi Koutsu SangyoLtd. 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.

Private Company Ownership

We can see that Private Companies own 36%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

Public companies currently own 4.8% of Daiichi Koutsu SangyoLtd stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Daiichi Koutsu SangyoLtd better, we need to consider many other factors. Be aware that Daiichi Koutsu SangyoLtd is showing 3 warning signs in our investment analysis , and 2 of those are a bit concerning...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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