PKSHA Technology Inc.'s (TSE:3993) stock price dropped 7.3% last week; retail investors would not be happy
Key Insights
- Significant control over PKSHA Technology by retail investors implies that the general public has more power to influence management and governance-related decisions
- A total of 6 investors have a majority stake in the company with 51% ownership
- Insiders own 43% of PKSHA Technology
If you want to know who really controls PKSHA Technology Inc. (TSE:3993), then you'll have to look at the makeup of its share registry. With 45% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
While the holdings of retail investors took a hit after last week’s 7.3% price drop, insiders with their 43% also suffered.
Let's take a closer look to see what the different types of shareholders can tell us about PKSHA Technology.
View our latest analysis for PKSHA Technology
What Does The Institutional Ownership Tell Us About PKSHA Technology?
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.
PKSHA Technology 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. 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 PKSHA Technology, (below). Of course, keep in mind that there are other factors to consider, too.
PKSHA Technology is not owned by hedge funds. Our data shows that Katsuya Uenoyama is the largest shareholder with 34% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.8% and 2.5% of the stock.
We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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 PKSHA Technology
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of PKSHA Technology Inc.. Insiders own JP¥44b worth of shares in the JP¥102b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over PKSHA Technology. 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 PKSHA Technology better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for PKSHA Technology 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.