The recent 8.4% gain must have brightened CEO Keiji Hanawa's week, Ki-Star Real Estate Co.,Ltd's (TSE:3465) most bullish insider

Key Insights

• Significant insider control over Ki-Star Real EstateLtd implies vested interests in company growth
• The top 5 shareholders own 50% of the company
• Institutional ownership in Ki-Star Real EstateLtd is 14%

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To get a sense of who is truly in control of Ki-Star Real Estate Co.,Ltd (TSE:3465), it is important to understand the ownership structure of the business. 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).

Clearly, insiders benefitted the most after the company's market cap rose by JP¥8.2b last week.

In the chart below, we zoom in on the different ownership groups of Ki-Star Real EstateLtd.

See our latest analysis for Ki-Star Real EstateLtd

What Does The Institutional Ownership Tell Us About Ki-Star Real EstateLtd?

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 Ki-Star Real EstateLtd 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 Ki-Star Real EstateLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Ki-Star Real EstateLtd. With a 43% stake, CEO Keiji Hanawa is the largest shareholder. Nomura Asset Management Co., Ltd. is the second largest shareholder owning 2.9% of common stock, and The Vanguard Group, Inc. holds about 2.1% of the company stock.

Our research also brought to light the fact that roughly 50% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Ki-Star Real EstateLtd

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.

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 Ki-Star Real Estate Co.,Ltd. Insiders own JP¥46b worth of shares in the JP¥106b 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-- including retail investors -- own 41% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Ki-Star Real EstateLtd (1 is potentially serious) that you should be aware of.

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.