Hy-Lok Corporation's (KOSDAQ:013030) large institutional owners must be happy as stock continues to impress, up 11% over the past week

Key Insights

• Significantly high institutional ownership implies Hy-Lok's stock price is sensitive to their trading actions
• A total of 5 investors have a majority stake in the company with 54% ownership
• Insiders own 31% of Hy-Lok

Every investor in Hy-Lok Corporation (KOSDAQ:013030) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 37% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And things are looking up for institutional investors after the company gained ₩33b in market cap last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 27%.

Let's delve deeper into each type of owner of Hy-Lok, beginning with the chart below.

Check out our latest analysis for Hy-Lok

What Does The Institutional Ownership Tell Us About Hy-Lok?

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.

Hy-Lok 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. 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 Hy-Lok'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 Hy-Lok. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Hy-Lok's case, its Co-Chief Executive Officer, Hyu-Gun Moon, is the largest shareholder, holding 24% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 7.5%, of the shares outstanding, respectively. In addition, we found that Young-Hoon Moon, the CEO has 4.4% of the shares allocated to their name.

On looking further, we found that 54% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Hy-Lok

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Hy-Lok Corporation. Insiders own ₩105b worth of shares in the ₩333b 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

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hy-Lok. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 6.7%, of the company's shares. 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:

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. Be aware that Hy-Lok is showing 1 warning sign in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.