Stock Analysis

What Type Of Shareholders Own The Most Number of HJ Magnolia Yongpyong Hotel & Resort (KRX:070960) Shares?

KOSE:A070960
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Every investor in HJ Magnolia Yongpyong Hotel & Resort (KRX:070960) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of ₩210b, HJ Magnolia Yongpyong Hotel & Resort is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about HJ Magnolia Yongpyong Hotel & Resort.

See our latest analysis for HJ Magnolia Yongpyong Hotel & Resort

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KOSE:A070960 Ownership Breakdown January 18th 2021
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What Does The Institutional Ownership Tell Us About HJ Magnolia Yongpyong Hotel & Resort?

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 HJ Magnolia Yongpyong Hotel & Resort does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of HJ Magnolia Yongpyong Hotel & Resort, (below). Of course, keep in mind that there are other factors to consider, too.

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KOSE:A070960 Earnings and Revenue Growth January 18th 2021

HJ Magnolia Yongpyong Hotel & Resort is not owned by hedge funds. The company's largest shareholder is The Holy Spirit Association For The Unification Of World Christianity, Endowment Arm, with ownership of 36%. In comparison, the second and third largest shareholders hold about 9.8% and 0.8% of the stock.

On studying our ownership data, we found that 15 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of HJ Magnolia Yongpyong Hotel & Resort

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 HJ Magnolia Yongpyong Hotel & Resort insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It has a market capitalization of just ₩210b, and the board has only ₩49m worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, mostly retail investors, hold a substantial 53% stake in HJ Magnolia Yongpyong Hotel & Resort, suggesting it is a fairly popular stock. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

It seems that Private Companies own 9.8%, of the HJ Magnolia Yongpyong Hotel & Resort stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand HJ Magnolia Yongpyong Hotel & Resort better, we need to consider many other factors. Be aware that HJ Magnolia Yongpyong Hotel & Resort is showing 3 warning signs in our investment analysis , and 1 of those is concerning...

Of course this may not be the best stock to buy. So take a peek at this free 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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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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