Institutional investors are Yamaichi Electronics Co.,Ltd.'s (TSE:6941) biggest bettors and were rewarded after last week's JP¥7.7b market cap gain
Key Insights
- Institutions' substantial holdings in Yamaichi ElectronicsLtd implies that they have significant influence over the company's share price
- The top 18 shareholders own 50% of the company
- Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
A look at the shareholders of Yamaichi Electronics Co.,Ltd. (TSE:6941) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And last week, institutional investors ended up benefitting the most after the company hit JP¥76b in market cap. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 70%.
In the chart below, we zoom in on the different ownership groups of Yamaichi ElectronicsLtd.
See our latest analysis for Yamaichi ElectronicsLtd
What Does The Institutional Ownership Tell Us About Yamaichi ElectronicsLtd?
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.
Yamaichi ElectronicsLtd 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. 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 Yamaichi ElectronicsLtd's earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Yamaichi ElectronicsLtd is not owned by hedge funds. Goldman Sachs Asset Management, L.P. is currently the largest shareholder, with 6.7% of shares outstanding. For context, the second largest shareholder holds about 4.6% of the shares outstanding, followed by an ownership of 4.2% by the third-largest shareholder.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 18 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Yamaichi ElectronicsLtd
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.
We can report that insiders do own shares in Yamaichi Electronics Co.,Ltd.. As individuals, the insiders collectively own JP¥1.4b worth of the JP¥76b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 44% stake in the company, and hence can't easily be ignored. 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.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Yamaichi ElectronicsLtd better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Yamaichi ElectronicsLtd you should be aware of.
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.
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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.