Private companies among ENERGY&MACHINERY KOREA Co.,Ltd.'s (KOSDAQ:095190) largest shareholders, saw gain in holdings value after stock jumped 14% last week

Key Insights

• The considerable ownership by private companies in ENERGY&MACHINERY KOREALtd indicates that they collectively have a greater say in management and business strategy
• The top 3 shareholders own 68% of the company
• 26% of ENERGY&MACHINERY KOREALtd is held by insiders

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A look at the shareholders of ENERGY&MACHINERY KOREA Co.,Ltd. (KOSDAQ:095190) can tell us which group is most powerful. The group holding the most number of shares in the company, around 43% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, private companies benefitted the most after the company's market cap rose by ₩19b last week.

In the chart below, we zoom in on the different ownership groups of ENERGY&MACHINERY KOREALtd.

See our latest analysis for ENERGY&MACHINERY KOREALtd

What Does The Lack Of Institutional Ownership Tell Us About ENERGY&MACHINERY KOREALtd?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. ENERGY&MACHINERY KOREALtd's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Hedge funds don't have many shares in ENERGY&MACHINERY KOREALtd. Looking at our data, we can see that the largest shareholder is Jung-Yun Choi with 26% of shares outstanding. Shinhwa Precision & Engineering Co. Ltd. is the second largest shareholder owning 22% of common stock, and Shinhwa Engineering Co., Ltd. holds about 21% of the company 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.

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

Insider Ownership Of ENERGY&MACHINERY KOREALtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 ENERGY&MACHINERY KOREA Co.,Ltd.. Insiders have a ₩42b stake in this ₩161b 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

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over ENERGY&MACHINERY KOREALtd. 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 43%, 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:

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. Case in point: We've spotted 2 warning signs for ENERGY&MACHINERY KOREALtd you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free 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.