Okamura Corporation (TSE:7994) surges 9.2%; individual investors who own 47% shares profited along with institutions

Simply Wall St · 04/15 03:37

Key Insights

  • Significant control over Okamura by individual investors implies that the general public has more power to influence management and governance-related decisions
  • A total of 22 investors have a majority stake in the company with 50% ownership
  • Institutional ownership in Okamura is 36%
We've discovered 2 warning signs about Okamura. View them for free.

To get a sense of who is truly in control of Okamura Corporation (TSE:7994), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that reaped the most benefits after last week’s 9.2% price gain, institutions also received a 36% cut.

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

Check out our latest analysis for Okamura

ownership-breakdown
TSE:7994 Ownership Breakdown April 15th 2025

What Does The Institutional Ownership Tell Us About Okamura?

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.

Okamura 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. 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 Okamura's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSE:7994 Earnings and Revenue Growth April 15th 2025

We note that hedge funds don't have a meaningful investment in Okamura. Okamura Corp., ESOP is currently the company's largest shareholder with 9.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.6% and 5.2% of the stock.

A closer look at our ownership figures suggests that the top 22 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Okamura

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Okamura Corporation insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. 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¥464m worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 47% stake in Okamura. 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

We can see that public companies hold 5.6% of the Okamura shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Okamura better, we need to consider many other factors. For example, we've discovered 2 warning signs for Okamura (1 makes us a bit uncomfortable!) 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.