Stock Analysis

Could The GS Engineering & Construction Corporation (KRX:006360) Ownership Structure Tell Us Something Useful?

KOSE:A006360
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A look at the shareholders of GS Engineering & Construction Corporation (KRX:006360) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

GS Engineering & Construction has a market capitalization of ₩3.3t, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about GS Engineering & Construction.

View our latest analysis for GS Engineering & Construction

ownership-breakdown
KOSE:A006360 Ownership Breakdown January 18th 2021

What Does The Institutional Ownership Tell Us About GS Engineering & Construction?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in GS Engineering & Construction. 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. 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 GS Engineering & Construction's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
KOSE:A006360 Earnings and Revenue Growth January 18th 2021

Hedge funds don't have many shares in GS Engineering & Construction. Our data shows that Chang-Soo Huh is the largest shareholder with 14% of shares outstanding. National Pension Service is the second largest shareholder owning 13% of common stock, and Jin-Soo Huh holds about 3.8% of the company stock.

After doing some more digging, we found that the top 14 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of GS Engineering & Construction

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.

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 information suggests that insiders maintain a significant holding in GS Engineering & Construction Corporation. It is very interesting to see that insiders have a meaningful ₩812b stake in this ₩3.3t business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, with a 43% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 4 warning signs for GS Engineering & Construction you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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