Every investor in AIMECHATEC, Ltd. (TSE:6227) should be aware of the most powerful shareholder groups. With 43% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Clearly, individual investors benefitted the most after the company's market cap rose by JP¥2.8b last week.
In the chart below, we zoom in on the different ownership groups of AIMECHATEC.
See our latest analysis for AIMECHATEC
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.
As you can see, institutional investors have a fair amount of stake in AIMECHATEC. 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 AIMECHATEC's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in AIMECHATEC. Tokyo Ohka Kogyo Co., Ltd. is currently the company's largest shareholder with 18% of shares outstanding. Optorun Co.,Ltd. is the second largest shareholder owning 18% of common stock, and Sumitomo Mitsui DS Asset Management Company, Limited holds about 6.6% of the company stock.
We did some more digging and found that 7 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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.
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that AIMECHATEC, Ltd. insiders own under 1% of the company. It has a market capitalization of just JP¥30b, and the board has only JP¥78m worth of shares in their own names. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
The general public-- including retail investors -- own 43% 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.
It appears to us that public companies own 36% of AIMECHATEC. 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 AIMECHATEC better, we need to consider many other factors. Be aware that AIMECHATEC is showing 3 warning signs in our investment analysis , and 2 of those are a bit unpleasant...
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.