Individual investors are Lake Materials Co., Ltd.'s (KOSDAQ:281740) biggest owners and were hit after market cap dropped ₩85b

Key Insights

• The considerable ownership by individual investors in Lake Materials indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 25 shareholders
• Insider ownership in Lake Materials is 44%

If you want to know who really controls Lake Materials Co., Ltd. (KOSDAQ:281740), then you'll have to look at the makeup of its share registry. With 50% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 5.3% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 44% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Lake Materials.

See our latest analysis for Lake Materials

What Does The Institutional Ownership Tell Us About Lake Materials?

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.

As you can see, institutional investors have a fair amount of stake in Lake Materials. 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 Lake Materials, (below). Of course, keep in mind that there are other factors to consider, too.

Lake Materials is not owned by hedge funds. Jin-Dong Kim is currently the largest shareholder, with 28% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 2.0% of the stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Lake Materials

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own a reasonable proportion of Lake Materials Co., Ltd.. Insiders own ₩667b worth of shares in the ₩1.5t company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public -- including retail investors -- own 50% of Lake Materials. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Lake Materials , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.