Institutions profited after Mona Yongpyong Co.,Ltd's (KRX:070960) market cap rose ₩22b last week but individual investors profited the most

Key Insights

• The considerable ownership by individual investors in Mona YongpyongLtd indicates that they collectively have a greater say in management and business strategy
• The top 17 shareholders own 49% of the company
• 39% of Mona YongpyongLtd is held by Institutions

Every investor in Mona Yongpyong Co.,Ltd (KRX:070960) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 51% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 14% increase in the stock price last week, individual investors profited the most, but institutions who own 39% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of Mona YongpyongLtd.

See our latest analysis for Mona YongpyongLtd

What Does The Institutional Ownership Tell Us About Mona YongpyongLtd?

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.

We can see that Mona YongpyongLtd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Mona YongpyongLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Mona YongpyongLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Foundation for the support of the Family Federation for World Peace and Unification, Endowment Arm with 37% of shares outstanding. Jinheung Leisure Development Co. Ltd. is the second largest shareholder owning 5.7% of common stock, and Hj Magnolia Yongpyeong The Ocean Hotel And Resort Co.,Ltd. holds about 4.2% of the company stock.

Our studies suggest that the top 17 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Mona YongpyongLtd

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own under 1% of Mona Yongpyong Co.,Ltd in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It appears that the board holds about ₩361m worth of stock. This compares to a market capitalization of ₩175b. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 51% of Mona YongpyongLtd. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

We can see that Private Companies own 10.0%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Mona YongpyongLtd has 2 warning signs we think you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.