Stock Analysis

Insiders are the top stockholders in Dong Suh Companies Inc. (KRX:026960), and the recent 13% drop might have disappointed them

KOSE:A026960
Source: Shutterstock

Key Insights

  • Significant insider control over Dong Suh Companies implies vested interests in company growth
  • 54% of the business is held by the top 2 shareholders
  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Dong Suh Companies Inc. (KRX:026960) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 69% 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, insiders as a group endured the highest losses after market cap fell by ₩370b.

Let's delve deeper into each type of owner of Dong Suh Companies, beginning with the chart below.

Check out our latest analysis for Dong Suh Companies

ownership-breakdown
KOSE:A026960 Ownership Breakdown November 21st 2024

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.

Since institutions own only a small portion of Dong Suh Companies, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth
KOSE:A026960 Earnings and Revenue Growth November 21st 2024

Hedge funds don't have many shares in Dong Suh Companies. Our data shows that Sang-Hun Kim is the largest shareholder with 36% of shares outstanding. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 15% by the third-largest shareholder.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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

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 ₩1.7t worth of shares in the ₩2.4t company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public, who are usually individual investors, hold a 27% stake in Dong Suh Companies. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Dong Suh Companies you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.