HD Hyundai Energy Solutions Co.,Ltd.'s (KRX:322000) stock price dropped 11% last week; public companies would not be happy

Key Insights

• HD Hyundai Energy SolutionsLtd's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• HD Korea Shipbuilding & Offshore Engineering Co., Ltd. owns 54% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in HD Hyundai Energy Solutions Co.,Ltd. (KRX:322000) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 54% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 11% decline in share price, public companies suffered the most losses.

In the chart below, we zoom in on the different ownership groups of HD Hyundai Energy SolutionsLtd.

View our latest analysis for HD Hyundai Energy SolutionsLtd

What Does The Institutional Ownership Tell Us About HD Hyundai Energy SolutionsLtd?

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.

HD Hyundai Energy SolutionsLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 HD Hyundai Energy SolutionsLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in HD Hyundai Energy SolutionsLtd. Our data shows that HD Korea Shipbuilding & Offshore Engineering Co., Ltd. is the largest shareholder with 54% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 4.6% and 1.0%, of the shares outstanding, respectively.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of HD Hyundai Energy SolutionsLtd

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 information suggests that HD Hyundai Energy Solutions Co.,Ltd. insiders own under 1% of the company. It appears that the board holds about ₩266k worth of stock. This compares to a market capitalization of ₩270b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public-- including retail investors -- own 39% 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.

Public Company Ownership

It appears to us that public companies own 54% of HD Hyundai Energy SolutionsLtd. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for HD Hyundai Energy SolutionsLtd that 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.