A look at the shareholders of DYNAM JAPAN HOLDINGS Co., Ltd. (HKG:6889) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'

DYNAM JAPAN HOLDINGS isn't enormous, but it's not particularly small either. It has a market capitalization of HK$7.9b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about 6889.

See our latest analysis for DYNAM JAPAN HOLDINGS

What Does The Institutional Ownership Tell Us About DYNAM JAPAN HOLDINGS?

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.

DYNAM JAPAN HOLDINGS already has institutions on the share registry. Indeed, they own 12% of 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see DYNAM JAPAN HOLDINGS's historic earnings and revenue, below, but keep in mind there's always more to the story.

DYNAM JAPAN HOLDINGS is not owned by hedge funds. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of DYNAM JAPAN HOLDINGS

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own the majority of DYNAM JAPAN HOLDINGS Co., Ltd.. This means they can collectively make decisions for the company. That means insiders have a very meaningful HK$4.3b stake in this HK$7.9b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.