Retail investors invested in JINSUNG T.E.C., Inc. (KOSDAQ:036890) copped the brunt of last week's ₩24b market cap decline

Key Insights

• The considerable ownership by retail investors in JINSUNG T.E.C indicates that they collectively have a greater say in management and business strategy
• A total of 13 investors have a majority stake in the company with 48% ownership
• Insiders own 41% of JINSUNG T.E.C

Every investor in JINSUNG T.E.C., Inc. (KOSDAQ:036890) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders, who own 41% shares weren’t spared from last week’s ₩24b market cap drop, retail investors as a group suffered the maximum losses

Let's take a closer look to see what the different types of shareholders can tell us about JINSUNG T.E.C.

Check out our latest analysis for JINSUNG T.E.C

What Does The Institutional Ownership Tell Us About JINSUNG T.E.C?

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.

JINSUNG T.E.C 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 JINSUNG T.E.C's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in JINSUNG T.E.C. With a 16% stake, CEO U-Seok Yun is the largest shareholder. Seong-Su Yun is the second largest shareholder owning 13% of common stock, and Jun-Su Yun holds about 12% of the company stock. Interestingly, the second-largest shareholder, Seong-Su Yun is also Co-Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

Our studies suggest that the top 13 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of JINSUNG T.E.C

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our most recent data indicates that insiders own a reasonable proportion of JINSUNG T.E.C., Inc.. It has a market capitalization of just ₩176b, and insiders have ₩71b worth of shares in their own names. 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, mostly comprising of individual investors, collectively holds 52% of JINSUNG T.E.C shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with JINSUNG T.E.C , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

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