Public companies invested in SNT Energy Co., Ltd. (KRX:100840) copped the brunt of last week's ₩230b market cap decline

Key Insights

• Significant control over SNT Energy by public companies implies that the general public has more power to influence management and governance-related decisions
• 57% of the company is held by a single shareholder (SNT Holdings Co., Ltd.)
• Institutional ownership in SNT Energy is 11%

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Every investor in SNT Energy Co., Ltd. (KRX:100840) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 21% decline in share price, public companies suffered the most losses.

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

Check out our latest analysis for SNT Energy

What Does The Institutional Ownership Tell Us About SNT Energy?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

SNT Energy 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. 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 SNT Energy, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in SNT Energy. SNT Holdings Co., Ltd. is currently the company's largest shareholder with 57% of shares outstanding. This implies that they have majority interest control of the future of the company. With 5.4% and 4.6% of the shares outstanding respectively, National Pension Service and S&T Scholarship Foundation are the second and third largest shareholders.

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 SNT Energy

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 most recent data indicates that insiders own less than 1% of SNT Energy Co., Ltd.. It has a market capitalization of just ₩874b, and the board has only ₩3.9b worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SNT Energy. 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

We can see that public companies hold 57% of the SNT Energy shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand SNT Energy better, we need to consider many other factors. Take risks for example - SNT Energy has 1 warning sign we think 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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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.