Nippon Soda Co., Ltd. (TSE:4041) surges 5.6%; retail investors who own 51% shares profited along with institutions

Simply Wall St · 07/02 23:04

Key Insights

  • Nippon Soda's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • 47% of the business is held by the top 25 shareholders
  • Institutional ownership in Nippon Soda is 40%

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Every investor in Nippon Soda Co., Ltd. (TSE:4041) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 5.6% increase in the stock price last week, retail investors profited the most, but institutions who own 40% stock also stood to gain from the increase.

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

See our latest analysis for Nippon Soda

ownership-breakdown
TSE:4041 Ownership Breakdown July 2nd 2025

What Does The Institutional Ownership Tell Us About Nippon Soda?

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.

Nippon Soda already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Nippon Soda, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TSE:4041 Earnings and Revenue Growth July 2nd 2025

We note that hedge funds don't have a meaningful investment in Nippon Soda. The company's largest shareholder is T. Rowe Price Group, Inc., with ownership of 4.8%. With 3.7% and 3.7% of the shares outstanding respectively, Mitsui & Co., Ltd. and Nippon Soda Co., Ltd. Clients' Stock Ownership 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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Nippon Soda

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own some shares in Nippon Soda Co., Ltd.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around JP¥4.1b worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 51% of Nippon Soda. 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.

Public Company Ownership

Public companies currently own 3.7% of Nippon Soda 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. To that end, you should be aware of the 1 warning sign we've spotted with Nippon Soda .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.