DN Automotive Corporation's (KRX:007340): President Sang-Hun Kim is the most bullish insider, and their stock value gained 7.0% last week

Key Insights

• Significant insider control over DN Automotive implies vested interests in company growth
• 57% of the business is held by the top 2 shareholders
• Institutional ownership in DN Automotive is 11%

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A look at the shareholders of DN Automotive Corporation (KRX:007340) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit ₩1.2t market cap following a 7.0% gain in the stock.

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

View our latest analysis for DN Automotive

What Does The Institutional Ownership Tell Us About DN Automotive?

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.

DN Automotive already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 DN Automotive, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in DN Automotive. From our data, we infer that the largest shareholder is Sang-Hun Kim (who also holds the title of President) with 42% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Minchan Kim is the second largest shareholder owning 16% of common stock, and National Pension Service holds about 6.3% of the company stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 57% stake.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of DN Automotive

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems that insiders own more than half the DN Automotive Corporation stock. This gives them a lot of power. So they have a ₩663b stake in this ₩1.2t business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over DN Automotive. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand DN Automotive better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with DN Automotive (including 1 which can't be ignored) .

Of course this may not be the best stock to buy. So take a peek at this free 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.