Public companies in HD Hyundai Construction Equipment Co., LTD. (KRX:267270) are its biggest bettors, and their bets paid off as stock gained 4.6% last week

Key Insights

• HD Hyundai Construction Equipment's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 53% of the business is held by the top 2 shareholders
• 25% of HD Hyundai Construction Equipment is held by Institutions

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To get a sense of who is truly in control of HD Hyundai Construction Equipment Co., LTD. (KRX:267270), 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 39% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, public companies benefitted the most after the company's market cap rose by ₩74b last week.

Let's take a closer look to see what the different types of shareholders can tell us about HD Hyundai Construction Equipment.

See our latest analysis for HD Hyundai Construction Equipment

What Does The Institutional Ownership Tell Us About HD Hyundai Construction Equipment?

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 HD Hyundai Construction Equipment 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. 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 HD Hyundai Construction Equipment's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in HD Hyundai Construction Equipment. HD Hyundai Co., Ltd. is currently the company's largest shareholder with 39% of shares outstanding. National Pension Service is the second largest shareholder owning 14% of common stock, and Asan Foundation holds about 2.8% of the company stock.

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 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 HD Hyundai Construction Equipment

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that HD Hyundai Construction Equipment Co., LTD. insiders own under 1% of the company. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around ₩514m worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. 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.

Public Company Ownership

Public companies currently own 39% of HD Hyundai Construction Equipment 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 HD Hyundai Construction Equipment better, we need to consider many other factors. For example, we've discovered 1 warning sign for HD Hyundai Construction Equipment that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.