Stock Analysis

Individual investors among DAEDUCK ELECTRONICS Co., Ltd.'s (KRX:353200) largest stockholders and were hit after last week's 6.9% price drop

KOSE:A353200
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Key Insights

  • The considerable ownership by individual investors in DAEDUCK ELECTRONICS indicates that they collectively have a greater say in management and business strategy
  • The top 23 shareholders own 50% of the company
  • 19% of DAEDUCK ELECTRONICS is held by Institutions

A look at the shareholders of DAEDUCK ELECTRONICS Co., Ltd. (KRX:353200) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 50% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors as a group endured the highest losses last week after market cap fell by ₩95b.

Let's delve deeper into each type of owner of DAEDUCK ELECTRONICS, beginning with the chart below.

See our latest analysis for DAEDUCK ELECTRONICS

ownership-breakdown
KOSE:A353200 Ownership Breakdown April 14th 2024

What Does The Institutional Ownership Tell Us About DAEDUCK ELECTRONICS?

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 DAEDUCK ELECTRONICS. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of DAEDUCK ELECTRONICS, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
KOSE:A353200 Earnings and Revenue Growth April 14th 2024

We note that hedge funds don't have a meaningful investment in DAEDUCK ELECTRONICS. Daeduck Co.,Ltd. is currently the largest shareholder, with 30% of shares outstanding. For context, the second largest shareholder holds about 9.1% of the shares outstanding, followed by an ownership of 2.2% by the third-largest shareholder.

A closer look at our ownership figures suggests that the top 23 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of DAEDUCK ELECTRONICS

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of DAEDUCK ELECTRONICS Co., Ltd. in their own names. It seems the board members have no more than ₩11b worth of shares in the ₩1.2t company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 50% stake in DAEDUCK ELECTRONICS. 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 30% of DAEDUCK ELECTRONICS. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand DAEDUCK ELECTRONICS better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with DAEDUCK ELECTRONICS , and understanding them should be part of your investment process.

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.

Valuation is complex, but we're helping make it simple.

Find out whether DAEDUCK ELECTRONICS is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.