Vitzro Tech Co. Ltd's (KOSDAQ:042370): Co-Chief Executive Officer Soon-Sang Jang is the most bullish insider, and their stock value gained 11% last week

Key Insights

• Vitzro Tech's significant insider ownership suggests inherent interests in company's expansion
• A total of 3 investors have a majority stake in the company with 56% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

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To get a sense of who is truly in control of Vitzro Tech Co. Ltd (KOSDAQ:042370), it is important to understand the ownership structure of the business. With 53% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit ₩228b market cap following a 11% gain in the stock.

Let's delve deeper into each type of owner of Vitzro Tech, beginning with the chart below.

Check out our latest analysis for Vitzro Tech

What Does The Lack Of Institutional Ownership Tell Us About Vitzro Tech?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Vitzro Tech, for yourself, below.

We note that hedge funds don't have a meaningful investment in Vitzro Tech. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Vitzro Tech's case, its Co-Chief Executive Officer, Soon-Sang Jang, is the largest shareholder, holding 41% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.3% and 7.2% of the stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Vitzro Tech

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 own more than half of Vitzro Tech Co. Ltd. This gives them effective control of the company. That means they own ₩120b worth of shares in the ₩228b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Vitzro Tech. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 7.3%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Vitzro Tech better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Vitzro Tech you should know about.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.