Public companies in HDC Hyundai Development Company (KRX:294870) are its biggest bettors, and their bets paid off as stock gained 7.2% last week

Key Insights

• Significant control over HDC Hyundai Development by public companies implies that the general public has more power to influence management and governance-related decisions
• The top 2 shareholders own 55% of the company
• 20% of HDC Hyundai Development is held by Institutions

Every investor in HDC Hyundai Development Company (KRX:294870) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 43% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies collectively scored the highest last week as the company hit ₩1.3t market cap following a 7.2% gain in the stock.

Let's delve deeper into each type of owner of HDC Hyundai Development, beginning with the chart below.

View our latest analysis for HDC Hyundai Development

What Does The Institutional Ownership Tell Us About HDC Hyundai Development?

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.

We can see that HDC Hyundai Development 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see HDC Hyundai Development's historic earnings and revenue below, but keep in mind there's always more to the story.

HDC Hyundai Development is not owned by hedge funds. Our data shows that HDC HOLDINGS CO.,Ltd is the largest shareholder with 43% of shares outstanding. For context, the second largest shareholder holds about 13% of the shares outstanding, followed by an ownership of 2.1% by the third-largest shareholder.

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 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of HDC Hyundai Development

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

Shareholders would probably be interested to learn that insiders own shares in HDC Hyundai Development Company. It has a market capitalization of just ₩1.3t, and insiders have ₩17b worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

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 43% of HDC Hyundai Development stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand HDC Hyundai Development better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for HDC Hyundai Development you should be aware of, and 1 of them can't be ignored.

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.