Snt Dynamics Co.,Ltd.'s (KRX:003570) market cap dropped ₩83b last week; Public companies bore the brunt

Key Insights

• Snt DynamicsLtd's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 63% of the company is held by a single shareholder (SNT Holdings Co., Ltd.)
• Institutional ownership in Snt DynamicsLtd is 10%

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To get a sense of who is truly in control of Snt Dynamics Co.,Ltd. (KRX:003570), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 63% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, public companies endured the biggest losses as the stock fell by 6.8%.

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

See our latest analysis for Snt DynamicsLtd

What Does The Institutional Ownership Tell Us About Snt DynamicsLtd?

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 Snt DynamicsLtd does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Snt DynamicsLtd's earnings history below. Of course, the future is what really matters.

Snt DynamicsLtd is not owned by hedge funds. Our data shows that SNT Holdings Co., Ltd. is the largest shareholder with 63% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 4.5% and 3.3% of the shares outstanding respectively, S&T Foundation, Endowment Arm and Norges Bank Investment Management are the second and third largest shareholders.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Snt DynamicsLtd

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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public, who are usually individual investors, hold a 27% stake in Snt DynamicsLtd. 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

Public companies currently own 63% of Snt DynamicsLtd stock. 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 Snt DynamicsLtd better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Snt DynamicsLtd (of which 1 is a bit concerning!) you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.