- Japan
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- Marine and Shipping
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- TSE:9119
Iino Kaiun Kaisha, Ltd.'s (TSE:9119) 6.3% loss last week hit both individual investors who own 54% as well as institutions
Key Insights
- Significant control over Iino Kaiun Kaisha by individual investors implies that the general public has more power to influence management and governance-related decisions
- 48% of the business is held by the top 25 shareholders
- Institutions own 36% of Iino Kaiun Kaisha
To get a sense of who is truly in control of Iino Kaiun Kaisha, Ltd. (TSE:9119), it is important to understand the ownership structure of the business. With 54% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Following a 6.3% decrease in the stock price last week, individual investors suffered the most losses, but institutions who own 36% stock also took a hit.
In the chart below, we zoom in on the different ownership groups of Iino Kaiun Kaisha.
Check out our latest analysis for Iino Kaiun Kaisha
What Does The Institutional Ownership Tell Us About Iino Kaiun Kaisha?
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.
Iino Kaiun Kaisha already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Iino Kaiun Kaisha, (below). Of course, keep in mind that there are other factors to consider, too.
Iino Kaiun Kaisha is not owned by hedge funds. The company's largest shareholder is Iino Kaiun Kaisha Ltd., Client Stock Ownership Association, with ownership of 5.6%. In comparison, the second and third largest shareholders hold about 4.5% and 4.0% of the stock.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Iino Kaiun Kaisha
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.
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 less than 1% of Iino Kaiun Kaisha, Ltd.. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It appears that the board holds about JPÂ¥318m worth of stock. This compares to a market capitalization of JPÂ¥126b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 54% of Iino Kaiun Kaisha shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Private Company Ownership
We can see that Private Companies own 4.4%, 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:
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 for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Iino Kaiun Kaisha , and understanding them should be part of your investment process.
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.
About TSE:9119
Iino Kaiun Kaisha
Engages in shipping and real estate businesses worldwide.
Established dividend payer and good value.