Analysis of the Increase in the Target Price of Sumitomo Rubber Industries

Sumitomo Rubber Industries ( TYO: 5110) has experienced a significant adjustment in its one-year average target price, now set at 1,545.30 yen per share. This new target represents a 19.82% increase compared to the previous estimate of 1,289.73 yen, dated August 31, 2023.

Details of the New Target Price

The range of targets provided by analysts spans from a minimum of 1,060.50 to a maximum of 2,205.00 yen per share. It is important to note that the new average target price implies a potential growth of 0.84% over the last reported closing price of 1,532.50 yen.

Dividend Analysis

Sumitomo Rubber Industries currently maintains a yield of 2.61% at current prices. Some relevant data regarding the company’s dividend policy include:

• Dividend payout ratio: 24.81%
• 3-year dividend growth rate: 1.00%

These indicators suggest a sustainable dividend policy, with a conservative payout ratio that allows the company to reinvest in its growth while rewarding shareholders.

Institutional Perspective

A slight decrease has been observed in the number of institutional investors in Sumitomo Rubber Industries, with a reduction of 6 owners or 6.67% in the last quarter. However, the average weight of the stock in the portfolios of funds dedicated to 5110 has increased by 3.77%, reaching 0.08%.

The total shares held by institutions have decreased by 1.81% over the past three months, totaling 15.363 million shares.

Movements of Institutional Shareholders

Several institutional investors have adjusted their positions in Sumitomo Rubber Industries:

1. One investor increased their stake by 1.88%, reaching 2.432 million shares (0.92% of the company ).
2. Another increased their position by 3.74%, reaching 1.424 million shares (0.54% of the company ).
3. A third investor increased their stake by 5.44%, reaching 1.358 million shares (0.52% of the company ).
4. A fourth investor slightly increased their position by 0.38%, holding 888,000 shares (0.34% of the company ).
5. A fifth investor significantly increased their stake by 7.39%, reaching 816,000 shares (0.31% of the company ).

These institutional movements reflect sustained interest in the stock, despite the slight decrease in the total number of institutional investors.