Stock Analysis

Individual investors are Korea Fuel-Tech Corporation's (KOSDAQ:123410) biggest owners and were hit after market cap dropped ₩21b

KOSDAQ:A123410
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Key Insights

  • Korea Fuel-Tech's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • 50% of the business is held by the top 11 shareholders
  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in Korea Fuel-Tech Corporation (KOSDAQ:123410) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to ₩172b last week, individual investors would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Korea Fuel-Tech, beginning with the chart below.

See our latest analysis for Korea Fuel-Tech

ownership-breakdown
KOSDAQ:A123410 Ownership Breakdown June 5th 2024

What Does The Institutional Ownership Tell Us About Korea Fuel-Tech?

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.

Korea Fuel-Tech already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Korea Fuel-Tech's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
KOSDAQ:A123410 Earnings and Revenue Growth June 5th 2024

Hedge funds don't have many shares in Korea Fuel-Tech. CDC S.R.L. is currently the company's largest shareholder with 35% of shares outstanding. Won-Suck Oh is the second largest shareholder owning 4.2% of common stock, and Korea Securities Finance Corporation, Investment Arm holds about 4.0% of the company stock. Won-Suck Oh, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On studying our ownership data, we found that 11 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Korea Fuel-Tech

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in Korea Fuel-Tech Corporation. In their own names, insiders own ₩16b worth of stock in the ₩172b company. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 50% of Korea Fuel-Tech. 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.

Private Company Ownership

We can see that Private Companies own 35%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Korea Fuel-Tech you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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 here to simplify it.

Discover if Korea Fuel-Tech might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.