Group of Japan Exchange: Price target increased by 5.26% to 2,924.00

The one-year average price target for the Japan Exchange Group has been revised to 2,924.00 per share. This represents a 5.26% increase from the previous estimate of 2,777.80 as of August 31, 2023.

This target is an average of multiple estimates provided by analysts. The most recent targets range from a minimum of 2,525.00 to a maximum of 3,780.00 per share. The average price target represents an 8.90% increase from the last reported closing price of 2,685.00 per share.

I find it interesting that while global markets face turbulence, this Japanese company continues to gain confidence among analysts. Could they be seeking refuge in Asian markets amid Western instability?

Yield of 2.12%

At the most recent price, the company’s dividend yield is 2.12%. Additionally, its dividend payout ratio is 0.57. This ratio indicates how much of a company’s income is paid out as dividends. A payout ratio of one (1.0) means 100% of earnings are paid as dividends.

The company’s three-year dividend growth rate is 0.19%, showing that it has increased its dividend over time, albeit at a quite modest pace, I would say.

Fund Sentiment

There has been a decrease in institutional owners in the last quarter ( -0.47% ). The average portfolio weight dedicated to this company is 0.16%, with an increase of 6.69%. Total shares held by institutions increased by 3.34% to 50,177,000.

Several major funds have adjusted their positions:

• A major fund holds 7,481,000 shares (1.44% ownership ), after a decrease of 1.36%, but increased its portfolio allocation by 10.99%.
• Another fund owns 7,042,000 shares (1.35% ownership ), after a 1.09% increase, with a 3.06% increase in its allocation.
• A third fund has 4,133,000 shares (0.79% ownership ), after a 1.83% increase, with an 11.61% increase in allocation.

Personally, I find it contradictory to see how some funds reduce the number of shares but increase their percentage allocation. This could indicate a rebalancing strategy rather than genuine confidence in the long-term value.

The truth is that these institutional movements, while informative, do not always reflect the company’s true potential. Sometimes I wonder if we are giving too much importance to these quarterly fluctuations, which might respond more to technical adjustments than to a fundamental view of the business.