26% of Hitachi Construction Machinery Co., Ltd. (TSE:6305) is privately owned and 25% is public.

Key findings

A look at the shareholders of Hitachi Construction Machinery Co., Ltd. (TSE:6305) tells us which group is the most powerful. With 26% of the shares, private companies own the most shares in the company. In other words, the group has the most profit (or loss) from their investment in the company.

Stock corporations, in turn, own a 25% stake in the company.

Let’s take a closer look at each type of Hitachi construction equipment owner using the table below.

Check out our latest analysis for Hitachi Construction Machinery

What does institutional ownership tell us about Hitachi construction equipment?

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 their registry, especially if they’re growing.

We can see that Hitachi Construction Machinery has institutional investors; and they hold a good portion of the company’s shares. This suggests some credibility among professional investors. But we cannot rely on this fact alone, as institutions make bad investments sometimes, just like everyone else does. It is not uncommon to see a large share price drop if two large institutional investors try to sell a stock at the same time, so it is worth checking Hitachi Construction Machinery’s past earnings history (below). Of course, remember that there are other factors to consider as well.

We note that hedge funds do not have any significant investments in Hitachi Construction Machinery. Looking at our data, we can see that the largest shareholder is HCJI Holdings LLC with 26% of the outstanding shares. For comparison, the second largest shareholder holds about 25% of the outstanding shares, followed by the third largest shareholder with 5.8%.

A closer examination of the shareholder register revealed that two of the largest shareholders own a significant share in the company with their 51% stake.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst opinions. Quite a few analysts cover the stock, so you can look at the forecasted growth quite easily.

Insider ownership of Hitachi Construction Machinery

The definition of an insider may vary slightly from country to country, but it always includes members of the board of directors. Company management runs the business, but the CEO is responsible to the board, even if he or she is a member of the board.

I think insider ownership is generally a good thing. However, in some cases it makes it harder for other shareholders to hold the board accountable for decisions.

According to our information, Hitachi Construction Machinery Co., Ltd. insiders own less than 1% of the company. However, it is possible that insiders have indirect interests through a more complex structure. It is a large company, so even small holdings can lead to alignment between the board and shareholders. In this case, insiders own JP¥477m worth of shares. One could argue that recent buying and selling is equally important. You can click here to see if insiders have been buying or selling.

Public property

The general public – including retail investors – owns 24% of the company’s shares and therefore cannot be easily ignored. While this level of ownership is significant, it may not be enough to change company policy if the decision does not coincide with that of other major shareholders.

Private company ownership

It appears that private companies own 26% of Hitachi Construction Machinery’s shares. Private companies may be related parties. Sometimes insiders are involved in a publicly traded company through an ownership interest in a private company, rather than in their own capacity as an individual. While it is difficult to draw any general conclusions, this is an area for further investigation.

Ownership of public companies

Public companies currently own 25% of Hitachi Construction Machinery shares. This could be a strategic interest and the two companies may have related business interests. It could be that they have split. This holding is probably worth investigating further.

Next Steps:

While it is worth considering the different groups that own a company, there are other factors that are even more important. For example, we found 2 warning signs for Hitachi construction machines (1 we don’t like so much) that you should know.

Ultimately The future is the most important thing. You can access these free Report on analyst forecasts for the company.

NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.