Fuji Oozx Inc.'s (TSE:7299) largest shareholders are public companies who were rewarded as market cap surged JP¥1.8b last week
Key Insights
- Fuji Oozx's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- 52% of the business is held by the top 2 shareholders
- Institutional ownership in Fuji Oozx is 12%
To get a sense of who is truly in control of Fuji Oozx Inc. (TSE:7299), it is important to understand the ownership structure of the business. We can see that public companies 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.
Clearly, public companies benefitted the most after the company's market cap rose by JP¥1.8b last week.
Let's delve deeper into each type of owner of Fuji Oozx, beginning with the chart below.
View our latest analysis for Fuji Oozx
What Does The Institutional Ownership Tell Us About Fuji Oozx?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Fuji Oozx. 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 Fuji Oozx, (below). Of course, keep in mind that there are other factors to consider, too.
Fuji Oozx is not owned by hedge funds. Daido Steel Co., Ltd. is currently the company's largest shareholder with 46% of shares outstanding. Daido Kogyo Co., Ltd. is the second largest shareholder owning 5.3% of common stock, and J and S INSURANCE SERVICE Co., Ltd. holds about 3.2% of the company stock.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Fuji Oozx
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.
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.
Shareholders would probably be interested to learn that insiders own shares in Fuji Oozx Inc.. It has a market capitalization of just JP¥20b, and insiders have JP¥381m worth of shares, in their own names. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 32% stake in Fuji Oozx. 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.
Public Company Ownership
We can see that public companies hold 52% of the Fuji Oozx shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Fuji Oozx you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.