Isuzu Motors Limited's (TSE:7202) recent 12% pullback adds to one-year year losses, institutional owners may take drastic measures

Simply Wall St · 04/08 21:30

Key Insights

  • Institutions' substantial holdings in Isuzu Motors implies that they have significant influence over the company's share price
  • A total of 10 investors have a majority stake in the company with 51% ownership
  • Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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Every investor in Isuzu Motors Limited (TSE:7202) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 47% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And institutional investors endured the highest losses after the company's share price fell by 12% last week. This set of investors may especially be concerned about the current loss, which adds to a one-year loss of 12% for shareholders. Often called “market movers", institutions wield significant power in influencing the price dynamics of any stock. As a result, if the decline continues, institutional investors may be pressured to sell Isuzu Motors which might hurt individual investors.

In the chart below, we zoom in on the different ownership groups of Isuzu Motors.

Check out our latest analysis for Isuzu Motors

ownership-breakdown
TSE:7202 Ownership Breakdown April 8th 2025

What Does The Institutional Ownership Tell Us About Isuzu Motors?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Isuzu Motors. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Isuzu Motors' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSE:7202 Earnings and Revenue Growth April 8th 2025

We note that hedge funds don't have a meaningful investment in Isuzu Motors. Our data shows that Mitsubishi Corporation is the largest shareholder with 8.9% of shares outstanding. With 7.4% and 6.3% of the shares outstanding respectively, Itochu Automobile Investment LLC and Nomura Asset Management Co., Ltd. are the second and third largest shareholders.

We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain 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 Isuzu Motors

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our data suggests that insiders own under 1% of Isuzu Motors Limited in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own JP¥503m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 7.4%, of the shares on issue. 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

It appears to us that public companies own 14% of Isuzu Motors. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Isuzu Motors better, we need to consider many other factors. Take risks for example - Isuzu Motors has 1 warning sign we think you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts .

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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