Taro Ueno SUSMED,Inc.'s (TSE:4263) CEO is the most bullish insider, and their stock value gained 12%last week
Key Insights
- Insiders appear to have a vested interest in SUSMEDInc's growth, as seen by their sizeable ownership
- 51% of the business is held by the top 3 shareholders
- Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
A look at the shareholders of SUSMED,Inc. (TSE:4263) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, insiders scored the highest last week as the company hit JP¥16b market cap following a 12% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about SUSMEDInc.
Check out our latest analysis for SUSMEDInc
What Does The Institutional Ownership Tell Us About SUSMEDInc?
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.
SUSMEDInc already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 SUSMEDInc's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in SUSMEDInc. The company's CEO Taro Ueno is the largest shareholder with 41% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.2% and 4.9% of the stock.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of SUSMEDInc
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
It seems insiders own a significant proportion of SUSMED,Inc.. Insiders own JP¥6.8b worth of shares in the JP¥16b 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
The general public, who are usually individual investors, hold a 39% stake in SUSMEDInc. 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.
Private Company Ownership
It seems that Private Companies own 4.9%, of the SUSMEDInc stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Public Company Ownership
We can see that public companies hold 5.6% of the SUSMEDInc shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
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 3 warning signs for SUSMEDInc you should be aware of, and 1 of them is concerning.
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.
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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.