Stock Analysis

Could The SaraminHR Co.,Ltd. (KOSDAQ:143240) Ownership Structure Tell Us Something Useful?

KOSDAQ:A143240
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A look at the shareholders of SaraminHR Co.,Ltd. (KOSDAQ:143240) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

SaraminHRLtd is a smaller company with a market capitalization of ₩295b, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about SaraminHRLtd.

Check out our latest analysis for SaraminHRLtd

ownership-breakdown
KOSDAQ:A143240 Ownership Breakdown January 26th 2021

What Does The Institutional Ownership Tell Us About SaraminHRLtd?

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.

SaraminHRLtd 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 SaraminHRLtd's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
KOSDAQ:A143240 Earnings and Revenue Growth January 26th 2021

Our data indicates that hedge funds own 5.3% of SaraminHRLtd. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Daou Technology Inc. is currently the largest shareholder, with 35% of shares outstanding. The second and third largest shareholders are Stichting Pensioenfonds ABP and Daou Data Corp., with an equal amount of shares to their name at 6.6%.

Our research also brought to light the fact that roughly 53% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of SaraminHRLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

We can see that insiders own shares in SaraminHR Co.,Ltd.. In their own names, insiders own ₩10.0b worth of stock in the ₩295b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, with a 22% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 41% of SaraminHRLtd. 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:

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. Be aware that SaraminHRLtd is showing 1 warning sign in our investment analysis , 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. 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.
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