Public companies invested in Oracle Corporation Japan (TSE:4716) copped the brunt of last week's JP¥56b market cap decline

Key Insights

• Oracle Corporation Japan's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• Oracle Corporation owns 74% of the company
• Institutional ownership in Oracle Corporation Japan is 12%

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If you want to know who really controls Oracle Corporation Japan (TSE:4716), then you'll have to look at the makeup of its share registry. With 74% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies as a group endured the highest losses last week after market cap fell by JP¥56b.

In the chart below, we zoom in on the different ownership groups of Oracle Corporation Japan.

Check out our latest analysis for Oracle Corporation Japan

What Does The Institutional Ownership Tell Us About Oracle Corporation Japan?

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.

Oracle Corporation Japan 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 Oracle Corporation Japan's earnings history below. Of course, the future is what really matters.

Oracle Corporation Japan is not owned by hedge funds. Oracle Corporation is currently the largest shareholder, with 74% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 1.5% and 1.3% of the shares outstanding respectively, BlackRock, Inc. and Massachusetts Financial Services Company are the second and third largest shareholders.

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 Oracle Corporation Japan

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.

Our data suggests that insiders own under 1% of Oracle Corporation Japan in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own JP¥228m of stock. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Oracle Corporation Japan. 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

It appears to us that public companies own 74% of Oracle Corporation Japan. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.

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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.