Individual investors account for 45% of Zeon Corporation's (TSE:4205) ownership, while institutions account for 41%

Simply Wall St · 10/16 21:09

Key Insights

  • Zeon's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 19 investors have a majority stake in the company with 50% ownership
  • 41% of Zeon is held by Institutions

Every investor in Zeon Corporation (TSE:4205) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 45% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And institutions on the other hand have a 41% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

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

Check out our latest analysis for Zeon

ownership-breakdown
TSE:4205 Ownership Breakdown October 16th 2024

What Does The Institutional Ownership Tell Us About Zeon?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Zeon. 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 Zeon, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TSE:4205 Earnings and Revenue Growth October 16th 2024

Our data indicates that hedge funds own 6.9% of Zeon. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is Oasis Management Company Ltd., with ownership of 6.9%. Mizuho Financial Group, Inc., Asset Management Arm is the second largest shareholder owning 5.8% of common stock, and Nomura Asset Management Co., Ltd. holds about 5.0% of the company stock.

A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 Zeon

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 information suggests that Zeon Corporation insiders own under 1% of the company. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around JP¥451m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zeon. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 5.9% of Zeon stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Zeon better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Zeon (including 1 which is a bit unpleasant) .

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.