Individual investors who hold 42% of Maruzen Showa Unyu Co., Ltd. (TSE:9068) gained 7.3%, institutions profited as well

Key Insights

• Maruzen Showa Unyu's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 15 investors have a majority stake in the company with 50% ownership
• Institutional ownership in Maruzen Showa Unyu is 36%

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If you want to know who really controls Maruzen Showa Unyu Co., Ltd. (TSE:9068), 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 42% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that reaped the most benefits after last week’s 7.3% price gain, institutions also received a 36% cut.

In the chart below, we zoom in on the different ownership groups of Maruzen Showa Unyu.

Check out our latest analysis for Maruzen Showa Unyu

What Does The Institutional Ownership Tell Us About Maruzen Showa Unyu?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Maruzen Showa Unyu does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Maruzen Showa Unyu, (below). Of course, keep in mind that there are other factors to consider, too.

Our data indicates that hedge funds own 5.5% of Maruzen Showa Unyu. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Maruzen Shoji Ltd. is currently the largest shareholder, with 8.4% of shares outstanding. With 6.2% and 5.5% of the shares outstanding respectively, Meiji Yasuda Life Insurance Company and Symphony Financial Partners (Singapore) Pte. Ltd. are the second and third largest shareholders.

After doing some more digging, we found that the top 15 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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 some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Maruzen Showa Unyu

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.

Our most recent data indicates that insiders own some shares in Maruzen Showa Unyu Co., Ltd.. In their own names, insiders own JP¥2.0b worth of stock in the JP¥141b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 42% 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.

Private Company Ownership

We can see that Private Companies own 11%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Maruzen Showa Unyu better, we need to consider many other factors. Take risks for example - Maruzen Showa Unyu has 1 warning sign we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.