Both public companies who control a good portion of Saramin Co.,Ltd. (KOSDAQ:143240) along with institutions must be dismayed after last week's 11% decrease

Key Insights

• The considerable ownership by public companies in SaraminLtd indicates that they collectively have a greater say in management and business strategy
• 56% of the business is held by the top 4 shareholders
• Institutions own 38% of SaraminLtd

Every investor in Saramin Co.,Ltd. (KOSDAQ:143240) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 42% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 11% decrease in the stock price last week, public companies suffered the most losses, but institutions who own 38% stock also took a hit.

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

View our latest analysis for SaraminLtd

What Does The Institutional Ownership Tell Us About SaraminLtd?

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.

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

SaraminLtd is not owned by hedge funds. The company's largest shareholder is Daou Technology Inc., with ownership of 35%. With 7.9% and 6.7% of the shares outstanding respectively, Kayne Anderson Rudnick Investment Management, LLC and Daou Data Corp. are the second and third largest shareholders.

On looking further, we found that 56% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of SaraminLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own some shares in Saramin Co.,Ltd.. It has a market capitalization of just ₩168b, and insiders have ₩6.1b worth of shares, in their own names. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SaraminLtd. 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 42% of SaraminLtd stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with SaraminLtd (including 1 which is a bit unpleasant) .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.