Chubu Electric Power Company, Incorporated's (TSE:9502) largest shareholders are individual investors with 51% ownership, institutions own 47%

Key Insights

• Significant control over Chubu Electric Power Company by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 45% of the company
• Institutions own 47% of Chubu Electric Power Company

If you want to know who really controls Chubu Electric Power Company, Incorporated (TSE:9502), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, institutions make up 47% of the company’s shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.

Let's delve deeper into each type of owner of Chubu Electric Power Company, beginning with the chart below.

View our latest analysis for Chubu Electric Power Company

What Does The Institutional Ownership Tell Us About Chubu Electric Power Company?

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.

We can see that Chubu Electric Power Company 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 Chubu Electric Power Company, (below). Of course, keep in mind that there are other factors to consider, too.

Chubu Electric Power Company is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 8.5% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 4.7% and 3.4%, of the shares outstanding, respectively.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where 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 Chubu Electric Power Company

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.

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 Chubu Electric Power Company, Incorporated insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own JP¥361m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 51% of Chubu Electric Power Company 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Chubu Electric Power Company better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Chubu Electric Power Company (of which 2 are a bit unpleasant!) you should know about.

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.

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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.