HDC HOLDINGS CO.,Ltd's (KRX:012630) largest shareholder, CEO Mong-Gyu Chung sees holdings value fall by 8.7% following recent drop

Key Insights

• Significant insider control over HDC HOLDINGSLtd implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 51% ownership
• Institutions own 30% of HDC HOLDINGSLtd

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A look at the shareholders of HDC HOLDINGS CO.,Ltd (KRX:012630) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to ₩974b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

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

Check out our latest analysis for HDC HOLDINGSLtd

What Does The Institutional Ownership Tell Us About HDC HOLDINGSLtd?

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.

HDC HOLDINGSLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 HDC HOLDINGSLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in HDC HOLDINGSLtd. With a 42% stake, CEO Mong-Gyu Chung is the largest shareholder. With 8.9% and 7.4% of the shares outstanding respectively, VIP Research & Management Co., Ltd. and MNQ Investment Partners, Ltd., Asset Management Arm are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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

Insider Ownership Of HDC HOLDINGSLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 information suggests that insiders maintain a significant holding in HDC HOLDINGS CO.,Ltd. Insiders own ₩408b worth of shares in the ₩974b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 27% stake in HDC HOLDINGSLtd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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. Take risks for example - HDC HOLDINGSLtd has 2 warning signs (and 1 which is significant) we think you should know about.

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.