The recent pullback must have dismayed CS Wind Corporation (KRX:112610) insiders who own 42% of the company

Key Insights

• Insiders appear to have a vested interest in CS Wind's growth, as seen by their sizeable ownership
• 51% of the business is held by the top 3 shareholders
• Institutions own 23% of CS Wind

To get a sense of who is truly in control of CS Wind Corporation (KRX:112610), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 3.2% decline in share price, insiders suffered the most losses.

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

See our latest analysis for CS Wind

What Does The Institutional Ownership Tell Us About CS Wind?

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 CS Wind. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see CS Wind's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in CS Wind. Our data shows that Seong-Gwon Gim is the largest shareholder with 35% of shares outstanding. With 10% and 5.6% of the shares outstanding respectively, National Pension Service and Seungyeon Kim are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 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 CS Wind

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own a reasonable proportion of CS Wind Corporation. It has a market capitalization of just ₩2.3t, and insiders have ₩953b worth of shares in their own names. That's quite significant. 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, who are usually individual investors, hold a 36% stake in CS Wind. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CS Wind better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for CS Wind you should be aware of, and 1 of them is significant.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.