Retail investors invested in Sung Kwang Bend Co.,Ltd. (KOSDAQ:014620) up 12% last week, insiders too were rewarded

Key Insights

• The considerable ownership by retail investors in Sung Kwang BendLtd indicates that they collectively have a greater say in management and business strategy
• The top 6 shareholders own 51% of the company
• Insider ownership in Sung Kwang BendLtd is 33%

To get a sense of who is truly in control of Sung Kwang Bend Co.,Ltd. (KOSDAQ:014620), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 39% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Retail investors gained the most after market cap touched ₩396b last week, while insiders who own 33% also benefitted.

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

See our latest analysis for Sung Kwang BendLtd

What Does The Institutional Ownership Tell Us About Sung Kwang BendLtd?

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.

Sung Kwang BendLtd 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. 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 Sung Kwang BendLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Sung Kwang BendLtd. The company's CEO Jae-Il Ahn is the largest shareholder with 17% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 8.3%, of the shares outstanding, respectively.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Sung Kwang BendLtd

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 insiders maintain a significant holding in Sung Kwang Bend Co.,Ltd.. Insiders have a ₩132b stake in this ₩396b business. 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-- including retail investors -- own 39% stake in the company, and hence can't 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.

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.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.

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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.