Sung Kwang Bend Co.,Ltd.'s (KOSDAQ:014620) market cap rose ₩74b last week; retail investors who hold 43% profited and so did insiders

Key Insights

• Significant control over Sung Kwang BendLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 7 investors have a majority stake in the company with 52% ownership
• Insiders own 35% of Sung Kwang BendLtd

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If you want to know who really controls Sung Kwang Bend Co.,Ltd. (KOSDAQ:014620), then you'll have to look at the makeup of its share registry. With 43% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 9.9% increase in the stock price last week, retail investors profited the most, but insiders who own 35% stock also stood to gain from the increase.

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.

As you can see, institutional investors have a fair amount of stake in Sung Kwang BendLtd. 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 Sung Kwang BendLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Sung Kwang BendLtd is not owned by hedge funds. With a 18% stake, CEO Jae-il Ahn is the largest shareholder. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 5.6% by the third-largest shareholder. Interestingly, the second-largest shareholder, Kab-Won Ahn is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

We did some more digging and found that 7 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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

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. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Sung Kwang Bend Co.,Ltd.. Insiders have a ₩291b stake in this ₩829b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 43% stake in Sung Kwang BendLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Sung Kwang BendLtd better, we need to consider many other factors. Take risks for example - Sung Kwang BendLtd has 1 warning sign we think you should be aware of.

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.

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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.