Institutions along with retail investors who hold considerable shares inGS Yuasa Corporation (TSE:6674) come under pressure; lose 3.3% of holdings value

Simply Wall St · 10/15 01:11

Key Insights

  • GS Yuasa's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 25 investors have a majority stake in the company with 50% ownership
  • Institutional ownership in GS Yuasa is 45%

To get a sense of who is truly in control of GS Yuasa Corporation (TSE:6674), it is important to understand the ownership structure of the business. With 47% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While the holdings of retail investors took a hit after last week’s 3.3% price drop, institutions with their 45% holdings also suffered.

Let's delve deeper into each type of owner of GS Yuasa, beginning with the chart below.

View our latest analysis for GS Yuasa

ownership-breakdown
TSE:6674 Ownership Breakdown October 15th 2024

What Does The Institutional Ownership Tell Us About GS Yuasa?

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.

GS Yuasa 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at GS Yuasa's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSE:6674 Earnings and Revenue Growth October 15th 2024

GS Yuasa is not owned by hedge funds. Honda Motor Co., Ltd. is currently the company's largest shareholder with 4.9% of shares outstanding. For context, the second largest shareholder holds about 4.3% of the shares outstanding, followed by an ownership of 4.1% by the third-largest shareholder.

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.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of GS Yuasa

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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of GS Yuasa Corporation in their own names. 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¥191m worth of shares. 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 47% stake in GS Yuasa. 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

It appears to us that public companies own 7.1% of GS Yuasa. 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:

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. Case in point: We've spotted 4 warning signs for GS Yuasa you should be aware of, and 1 of them can't be ignored.

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.