Tokyo Rope Mfg. Co., Ltd.'s (TSE:5981) market cap surged JP¥1.6b last week, retail investors who have a lot riding on the company were rewarded

Simply Wall St · 3d ago

Key Insights

  • The considerable ownership by retail investors in Tokyo Rope Mfg indicates that they collectively have a greater say in management and business strategy
  • 49% of the business is held by the top 25 shareholders
  • Institutions own 19% of Tokyo Rope Mfg

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Every investor in Tokyo Rope Mfg. Co., Ltd. (TSE:5981) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 51% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by JP¥1.6b last week.

In the chart below, we zoom in on the different ownership groups of Tokyo Rope Mfg.

See our latest analysis for Tokyo Rope Mfg

ownership-breakdown
TSE:5981 Ownership Breakdown April 14th 2025

What Does The Institutional Ownership Tell Us About Tokyo Rope Mfg?

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 Tokyo Rope Mfg 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Tokyo Rope Mfg's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSE:5981 Earnings and Revenue Growth April 14th 2025

Tokyo Rope Mfg is not owned by hedge funds. Nippon Steel Corporation is currently the company's largest shareholder with 21% of shares outstanding. With 3.9% and 3.3% of the shares outstanding respectively, NH Investment & Securities Co., Ltd., Asset Management Arm and Tokyo Rope Manufacturing Co. Ltd., Mutual Prosperity Association are the second and third largest shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Tokyo Rope Mfg

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own less than 1% of Tokyo Rope Mfg. Co., Ltd.. It has a market capitalization of just JP¥18b, and the board has only JP¥97m worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in Tokyo Rope Mfg, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Public Company Ownership

It appears to us that public companies own 25% of Tokyo Rope Mfg. 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. For example, we've discovered 4 warning signs for Tokyo Rope Mfg (1 is potentially serious!) that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.