Public companies among VITZROCELL Co.,Ltd.'s (KOSDAQ:082920) largest stockholders and were hit after last week's 11% price drop

Key Insights

• VITZROCELLLtd's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 51% of the business is held by the top 3 shareholders
• Institutional ownership in VITZROCELLLtd is 29%

To get a sense of who is truly in control of VITZROCELL Co.,Ltd. (KOSDAQ:082920), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 34% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 11% decline in share price, public companies suffered the most losses.

In the chart below, we zoom in on the different ownership groups of VITZROCELLLtd.

See our latest analysis for VITZROCELLLtd

What Does The Institutional Ownership Tell Us About VITZROCELLLtd?

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 VITZROCELLLtd. 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 VITZROCELLLtd'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 VITZROCELLLtd. Vitzro Tech Co. Ltd is currently the largest shareholder, with 34% of shares outstanding. With 9.2% and 8.5% of the shares outstanding respectively, FMR LLC and Swedbank Robur Fonder AB are the second and third largest shareholders. In addition, we found that Soon-Sang Jang, the CEO has 1.2% of the shares allocated to their name.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of VITZROCELLLtd

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.

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 most recent data indicates that insiders own some shares in VITZROCELL Co.,Ltd.. As individuals, the insiders collectively own ₩15b worth of the ₩400b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 33% stake in the company, and hence can't easily be ignored. 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.

Public Company Ownership

It appears to us that public companies own 34% of VITZROCELLLtd. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand VITZROCELLLtd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for VITZROCELLLtd 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.