Shin Heung Energy & Electronics Co.,Ltd.'s (KOSDAQ:243840) stock price dropped 11% last week; retail investors would not be happy

Key Insights

• The considerable ownership by retail investors in Shin Heung Energy & ElectronicsLtd indicates that they collectively have a greater say in management and business strategy
• 52% of the business is held by the top 3 shareholders
• Insider ownership in Shin Heung Energy & ElectronicsLtd is 27%

A look at the shareholders of Shin Heung Energy & Electronics Co.,Ltd. (KOSDAQ:243840) can tell us which group is most powerful. With 35% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders who own 27% came under pressure after market cap dropped to ₩203b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Shin Heung Energy & ElectronicsLtd.

See our latest analysis for Shin Heung Energy & ElectronicsLtd

What Does The Institutional Ownership Tell Us About Shin Heung Energy & ElectronicsLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Shin Heung Energy & ElectronicsLtd does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Shin Heung Energy & ElectronicsLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Shin Heung Energy & ElectronicsLtd is not owned by hedge funds. Hwa-Bong Choi is currently the largest shareholder, with 21% of shares outstanding. The second and third largest shareholders are STIC Investments, Inc. and Second Wave Co.,Ltd., with an equal amount of shares to their name at 16%.

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 52% stake.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Shin Heung Energy & ElectronicsLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Shin Heung Energy & Electronics Co.,Ltd.. It has a market capitalization of just ₩203b, and insiders have ₩54b worth of shares in their own names. 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 35% stake in Shin Heung Energy & ElectronicsLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 16%, private equity firms could influence the Shin Heung Energy & ElectronicsLtd board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

We can see that Private Companies own 16%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Shin Heung Energy & ElectronicsLtd you should be aware of, and 1 of them is potentially serious.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.