Insiders were the key beneficiaries as HanJung Natural Connectivity System.co.,Ltd's (KOSDAQ:107640) market cap rises to ₩359b

Key Insights

• Insiders appear to have a vested interest in HanJung Natural Connectivity System.co.Ltd's growth, as seen by their sizeable ownership
• 52% of the business is held by the top 5 shareholders
• Institutional ownership in HanJung Natural Connectivity System.co.Ltd is 18%

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If you want to know who really controls HanJung Natural Connectivity System.co.,Ltd (KOSDAQ:107640), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 38% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by ₩39b last week.

Let's take a closer look to see what the different types of shareholders can tell us about HanJung Natural Connectivity System.co.Ltd.

View our latest analysis for HanJung Natural Connectivity System.co.Ltd

What Does The Institutional Ownership Tell Us About HanJung Natural Connectivity System.co.Ltd?

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.

We can see that HanJung Natural Connectivity System.co.Ltd does have institutional investors; and they hold a good portion of the company's stock. 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 HanJung Natural Connectivity System.co.Ltd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in HanJung Natural Connectivity System.co.Ltd. The company's largest shareholder is Sang-Gyun Kim, with ownership of 22%. With 11% and 6.4% of the shares outstanding respectively, Hwan-Sub Kim and LifeAssetManagement, Inc are the second and third largest shareholders. Hwan-Sub Kim, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive. In addition, we found that Hwan-Sik Kim, the CEO has 2.1% of the shares allocated to their name.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of HanJung Natural Connectivity System.co.Ltd

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 information suggests that insiders maintain a significant holding in HanJung Natural Connectivity System.co.,Ltd. Insiders own ₩135b worth of shares in the ₩359b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 33% stake in HanJung Natural Connectivity System.co.Ltd. 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.

Private Equity Ownership

With an ownership of 6.2%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

It seems that Private Companies own 4.5%, of the HanJung Natural Connectivity System.co.Ltd stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that HanJung Natural Connectivity System.co.Ltd is showing 3 warning signs in our investment analysis , and 1 of those is significant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.