GungHo Online Entertainment, Inc. (TSE:3765)’s 7.8% gain last week benefited both retail investors, who own 39%, and insiders

Key insights

• The significant participation of retail investors in GungHo Online Entertainment shows that they collectively have a greater say in management and business strategy
• 51% of the company is owned by the top 8 shareholders
• Insiders own 27% of GungHo Online Entertainment

To get a sense of who really has control of GungHo Online Entertainment, Inc. (TSE:3765), it’s important to understand the company’s ownership structure. And the group that holds the biggest piece of the pie is retail investors, with a 39% share. In other words, the group has maximum upside potential (or downside risk).

After a 7.8% rise in the share price last week, retail investors benefited the most, but insiders, who owned 27% of the shares, also benefited from the rise.

In the table below we take a closer look at the different ownership groups of GungHo Online Entertainment.

Check out our latest analysis for GungHo Online Entertainment

What does institutional ownership tell us about GungHo Online Entertainment?

Institutional investors often compare their own returns to the returns of a commonly followed index. So they typically consider buying larger companies that are included in the relevant benchmark index.

We can see that GungHo Online Entertainment has institutional investors; and they hold a majority of the company’s shares. This suggests a certain level of credibility among professional investors. But we can’t rely on this fact alone, as institutions make bad investments sometimes, just like everyone else. 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’s worth taking a look at GungHo Online Entertainment’s past earnings performance (see below). Of course, keep in mind that there are other factors to consider as well.

GungHo Online Entertainment is not owned by hedge funds. Taizo Son is currently the company’s largest shareholder with 25% of shares outstanding. In comparison, the second and third largest shareholders hold approximately 8.2% and 6.3% of the shares, respectively. In addition, CEO Kazuki Morishita owns 1.8% of the company’s shares.

We also found that the top 8 shareholders make up more than half of the share register, with some smaller shareholders balancing the interests of the larger shareholders to some extent.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting too.

Insider ownership of GungHo Online Entertainment

The definition of corporate insiders can be subjective and varies by jurisdiction. Our data reflects individual insiders and captures at least board members. The company management reports to the board of directors and the board is supposed to represent the interests of the shareholders. It is noteworthy that sometimes top managers themselves sit on the board.

In general, I think insider ownership is a good thing. However, in some cases it becomes more difficult for other shareholders to hold the board accountable for decisions.

It appears that insiders own a significant stake in GungHo Online Entertainment, Inc. Insiders own ¥185b worth of ¥50b worth of shares in the company. That is quite meaningful. It’s good to see this level of investment. Here you can see if these insiders have bought anything recently.

General public property

The general public, who are typically individual investors, holds a 39% stake in GungHo Online Entertainment. While this group doesn’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private equity ownership

Private equity firms hold an 8.2% stake in GungHo Online Entertainment. This suggests that they can influence important political decisions. This might encourage some investors, as private equity can sometimes promote strategies that help the market see the company’s value. Alternatively, these holders could exit the investment after it is listed.

Next Steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand GungHo Online Entertainment, we need to consider many other factors. Case in point: We discovered it 1 Warning Sign for GungHo Online Entertainment You should be aware of that.

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

Note: The figures in this article are calculated using the last twelve months of data, which refers to the twelve-month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the full year annual report figures.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute 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 focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any stocks mentioned.