WEBULL

Institutional investors control 37% of KDDI Corporation (TSE:9433) and were rewarded last week after stock increased 3.8%

Simply Wall St · 04/12 00:12

Key Insights

  • Significantly high institutional ownership implies KDDI's stock price is sensitive to their trading actions
  • 51% of the business is held by the top 11 shareholders
  • Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

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A look at the shareholders of KDDI Corporation (TSE:9433) can tell us which group is most powerful. The group holding the most number of shares in the company, around 37% 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.

And things are looking up for institutional investors after the company gained JP¥360b in market cap last week. One-year return to shareholders is currently 18% and last week’s gain was the icing on the cake.

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

View our latest analysis for KDDI

ownership-breakdown
TSE:9433 Ownership Breakdown April 12th 2025

What Does The Institutional Ownership Tell Us About KDDI?

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.

KDDI already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 KDDI, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TSE:9433 Earnings and Revenue Growth April 12th 2025

KDDI is not owned by hedge funds. Kyocera Corporation is currently the largest shareholder, with 17% of shares outstanding. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 5.3% by the third-largest shareholder.

After doing some more digging, we found that the top 11 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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 KDDI

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 most recent data indicates that insiders own less than 1% of KDDI Corporation. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own JP¥852m worth of shares (at current prices). 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

The general public, who are usually individual investors, hold a 36% stake in KDDI. 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

Public companies currently own 27% of KDDI stock. 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. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for KDDI 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.