Fujitec Co., Ltd. (TSE:6406) is definitely on the radar of institutional investors who own 40% of the company

Simply Wall St · 10/17 21:03

Key Insights

  • Institutions' substantial holdings in Fujitec implies that they have significant influence over the company's share price
  • The top 7 shareholders own 50% of the company
  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls Fujitec Co., Ltd. (TSE:6406), 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 40% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

Let's take a closer look to see what the different types of shareholders can tell us about Fujitec.

Check out our latest analysis for Fujitec

ownership-breakdown
TSE:6406 Ownership Breakdown October 17th 2024

What Does The Institutional Ownership Tell Us About Fujitec?

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

earnings-and-revenue-growth
TSE:6406 Earnings and Revenue Growth October 17th 2024

It looks like hedge funds own 27% of Fujitec shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Oasis Management Company Ltd. is currently the largest shareholder, with 20% of shares outstanding. With 6.7% and 6.5% of the shares outstanding respectively, Farallon Capital Management, L.L.C. and Uchiyama International Co., Ltd. are the second and third largest shareholders.

We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Fujitec

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 data suggests that insiders own under 1% of Fujitec Co., Ltd. in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. Keep in mind that it's a big company, and the insiders own JP¥1.9b worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Fujitec. 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

It seems that Private Companies own 10.0%, of the Fujitec stock. 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.

Public Company Ownership

It appears to us that public companies own 3.1% of Fujitec. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. Take risks for example - Fujitec has 2 warning signs 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.