A look at the shareholders of Relo Group, Inc. (TSE:8876) can tell us which group is most powerful. With 33% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Following a 3.7% increase in the stock price last week, individual investors profited the most, but institutions who own 27% stock also stood to gain from the increase.
Let's delve deeper into each type of owner of Relo Group, beginning with the chart below.
View our latest analysis for Relo Group
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.
We can see that Relo Group 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 Relo Group's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Relo Group. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Relo Group's case, its Top Key Executive, Masanori Sasada, is the largest shareholder, holding 24% of shares outstanding. Hikari Tsushin, Inc. is the second largest shareholder owning 12% of common stock, and The Vanguard Group, Inc. holds about 2.5% of the company stock.
On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 a reasonable proportion of Relo Group, Inc.. It has a market capitalization of just JP¥261b, and insiders have JP¥68b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.
The general public, who are usually individual investors, hold a 33% stake in Relo Group. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Public companies currently own 12% of Relo Group stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
It's always worth thinking about the different groups who own shares in a company. But to understand Relo Group better, we need to consider many other factors. Be aware that Relo Group is showing 1 warning sign in our investment analysis , you should know about...
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.