Public companies among Hyosung Heavy Industries Corporation's (KRX:298040) largest stockholders and were hit after last week's 7.5% price drop

Key Insights

• Significant control over Hyosung Heavy Industries by public companies implies that the general public has more power to influence management and governance-related decisions
• 54% of the business is held by the top 3 shareholders
• 20% of Hyosung Heavy Industries is held by insiders

A look at the shareholders of Hyosung Heavy Industries Corporation (KRX:298040) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 33% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 7.5% 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 Hyosung Heavy Industries.

See our latest analysis for Hyosung Heavy Industries

What Does The Institutional Ownership Tell Us About Hyosung Heavy Industries?

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.

As you can see, institutional investors have a fair amount of stake in Hyosung Heavy Industries. 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. 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 Hyosung Heavy Industries' earnings history below. Of course, the future is what really matters.

Hyosung Heavy Industries is not owned by hedge funds. The company's largest shareholder is Hyosung Corporation, with ownership of 33%. In comparison, the second and third largest shareholders hold about 11% and 11% of the stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Hyosung Heavy Industries

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 insiders maintain a significant holding in Hyosung Heavy Industries Corporation. Insiders own ₩536b worth of shares in the ₩2.7t company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hyosung Heavy Industries. 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

We can see that public companies hold 33% of the Hyosung Heavy Industries shares on issue. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Hyosung Heavy Industries is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.