Stock Analysis

Could The Dong Suh Companies Inc. (KRX:026960) Ownership Structure Tell Us Something Useful?

KOSE:A026960
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A look at the shareholders of Dong Suh Companies Inc. (KRX:026960) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Dong Suh Companies has a market capitalization of ₩3.3t, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Dong Suh Companies.

View our latest analysis for Dong Suh Companies

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KOSE:A026960 Ownership Breakdown January 24th 2021

What Does The Institutional Ownership Tell Us About Dong Suh Companies?

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.

We can see that Dong Suh Companies 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 Dong Suh Companies' historic earnings and revenue below, but keep in mind there's always more to the story.

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KOSE:A026960 Earnings and Revenue Growth January 24th 2021

Dong Suh Companies is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Sang-Hun Kim with 36% of shares outstanding. For context, the second largest shareholder holds about 19% of the shares outstanding, followed by an ownership of 13% by the third-largest shareholder.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 55% 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Dong Suh Companies

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 most recent data indicates that insiders own the majority of Dong Suh Companies Inc.. This means they can collectively make decisions for the company. Insiders own ₩2.3t worth of shares in the ₩3.3t company. That's extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 24% ownership, the general public have some degree of sway over Dong Suh Companies. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Dong Suh Companies better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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