Grand Korea Leisure Co., Ltd.'s (KRX:114090) market cap dropped ₩74b last week; State or government bore the brunt

Key Insights

• Grand Korea Leisure's significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• 51% of the company is held by a single shareholder (Korea Tourism Organization)
• 13% of Grand Korea Leisure is held by Institutions

Every investor in Grand Korea Leisure Co., Ltd. (KRX:114090) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 51% to be precise, is state or government. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, state or government endured the biggest losses as the stock fell by 10%.

In the chart below, we zoom in on the different ownership groups of Grand Korea Leisure.

Check out our latest analysis for Grand Korea Leisure

What Does The Institutional Ownership Tell Us About Grand Korea Leisure?

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.

As you can see, institutional investors have a fair amount of stake in Grand Korea Leisure. 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. 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 Grand Korea Leisure, (below). Of course, keep in mind that there are other factors to consider, too.

Grand Korea Leisure is not owned by hedge funds. Korea Tourism Organization is currently the largest shareholder, with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 7.9% and 1.1%, of the shares outstanding, respectively.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Grand Korea Leisure

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Grand Korea Leisure. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Grand Korea Leisure better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Grand Korea Leisure you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.