Individual investors among Cheryong Industrial Co.,Ltd.'s (KOSDAQ:147830) largest stockholders and were hit after last week's 11% price drop

Key Insights

• Significant control over Cheryong IndustrialLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• 44% of the business is held by the top 4 shareholders
• 44% of Cheryong IndustrialLtd is held by insiders

A look at the shareholders of Cheryong Industrial Co.,Ltd. (KOSDAQ:147830) can tell us which group is most powerful. The group holding the most number of shares in the company, around 56% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders who own 44% came under pressure after market cap dropped to ₩177b last week,individual investors took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Cheryong IndustrialLtd.

See our latest analysis for Cheryong IndustrialLtd

What Does The Lack Of Institutional Ownership Tell Us About Cheryong IndustrialLtd?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

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. Alternatively, there might be something about the company that has kept institutional investors away. Cheryong IndustrialLtd might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Hedge funds don't have many shares in Cheryong IndustrialLtd. Our data shows that Jong-Tae Park is the largest shareholder with 23% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 7.1%, of the shares outstanding, respectively.

On studying our ownership data, we found that 4 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Cheryong IndustrialLtd

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.

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 Cheryong Industrial Co.,Ltd.. Insiders have a ₩78b stake in this ₩177b 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

The general public, who are usually individual investors, hold a substantial 56% stake in Cheryong IndustrialLtd, suggesting it is a fairly popular stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Cheryong IndustrialLtd better, we need to consider many other factors. Take risks for example - Cheryong IndustrialLtd has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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