Hakuhodo DY Holdings Inc's (TSE:2433) top owners are retail investors with 47% stake, while 19% is held by company controlled foundation

Simply Wall St · 10/16 01:56

Key Insights

  • Significant control over Hakuhodo DY Holdings by retail investors implies that the general public has more power to influence management and governance-related decisions
  • 50% of the business is held by the top 18 shareholders
  • Institutional ownership in Hakuhodo DY Holdings is 19%

If you want to know who really controls Hakuhodo DY Holdings Inc (TSE:2433), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And company controlled foundation on the other hand have a 19% ownership in the company.

Let's delve deeper into each type of owner of Hakuhodo DY Holdings, beginning with the chart below.

See our latest analysis for Hakuhodo DY Holdings

ownership-breakdown
TSE:2433 Ownership Breakdown October 16th 2024

What Does The Institutional Ownership Tell Us About Hakuhodo DY Holdings?

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 Hakuhodo DY Holdings 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 Hakuhodo DY Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TSE:2433 Earnings and Revenue Growth October 16th 2024

Hedge funds don't have many shares in Hakuhodo DY Holdings. Hakuhodo Foundation, Endowment Arm is currently the largest shareholder, with 19% of shares outstanding. For context, the second largest shareholder holds about 5.0% of the shares outstanding, followed by an ownership of 3.1% by the third-largest shareholder.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 18 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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Hakuhodo DY Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Hakuhodo DY Holdings Inc in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. 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¥852m 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

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hakuhodo DY Holdings. 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 9.9%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with Hakuhodo DY Holdings .

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.