Stock Analysis

What Type Of Shareholders Make Up DAEYANG ELECTRIC.Co.,Ltd.'s (KOSDAQ:108380) Share Registry?

KOSDAQ:A108380
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The big shareholder groups in DAEYANG ELECTRIC.Co.,Ltd. (KOSDAQ:108380) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

DAEYANG ELECTRIC.Co.Ltd is not a large company by global standards. It has a market capitalization of ₩170b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about DAEYANG ELECTRIC.Co.Ltd.

View our latest analysis for DAEYANG ELECTRIC.Co.Ltd

ownership-breakdown
KOSDAQ:A108380 Ownership Breakdown February 3rd 2021

What Does The Institutional Ownership Tell Us About DAEYANG ELECTRIC.Co.Ltd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in DAEYANG ELECTRIC.Co.Ltd. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 DAEYANG ELECTRIC.Co.Ltd's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
KOSDAQ:A108380 Earnings and Revenue Growth February 3rd 2021

Hedge funds don't have many shares in DAEYANG ELECTRIC.Co.Ltd. Our data shows that Yeong U Seo is the largest shareholder with 61% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 7.4% of the shares outstanding, followed by an ownership of 5.6% by the third-largest 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of DAEYANG ELECTRIC.Co.Ltd

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.

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.

Our most recent data indicates that insiders own the majority of DAEYANG ELECTRIC.Co.,Ltd.. This means they can collectively make decisions for the company. So they have a ₩105b stake in this ₩170b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public holds a 23% stake in DAEYANG ELECTRIC.Co.Ltd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 4 warning signs we've spotted with DAEYANG ELECTRIC.Co.Ltd (including 1 which is concerning) .

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. 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.
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