Is HDC Hyundai Engineering Plastics Co., Ltd. (KRX:089470) Popular Amongst Institutions?

A look at the shareholders of HDC Hyundai Engineering Plastics Co., Ltd. (KRX:089470) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.

HDC Hyundai Engineering Plastics is not a large company by global standards. It has a market capitalization of ₩183b, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about HDC Hyundai Engineering Plastics.

See our latest analysis for HDC Hyundai Engineering Plastics

What Does The Institutional Ownership Tell Us About HDC Hyundai Engineering Plastics?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that HDC Hyundai Engineering Plastics does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 HDC Hyundai Engineering Plastics, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in HDC Hyundai Engineering Plastics. The company's largest shareholder is HDC HOLDINGS CO.,Ltd, with ownership of 53%. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 1.2% and 0.2% of the stock.

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 HDC Hyundai Engineering Plastics

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.

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 HDC Hyundai Engineering Plastics Co., Ltd. insiders own under 1% of the company. It seems the board members have no more than ₩406m worth of shares in the ₩183b company. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 34% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 53% of HDC Hyundai Engineering Plastics. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. Case in point: We've spotted 1 warning sign for HDC Hyundai Engineering Plastics you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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