What You Need To Know About Kyochon Food&Beverage Co., Ltd.'s (KRX:339770) Investor Composition

The big shareholder groups in Kyochon Food&Beverage Co., Ltd. (KRX:339770) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Kyochon Food&Beverage is a smaller company with a market capitalization of ₩462b, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions don't own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Kyochon Food&Beverage.

Check out our latest analysis for Kyochon Food&Beverage

What Does The Lack Of Institutional Ownership Tell Us About Kyochon Food&Beverage?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Kyochon Food&Beverage's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Kyochon Food&Beverage is not owned by hedge funds. Wonkang Kwon is currently the largest shareholder, with 73% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 4.5% of the shares outstanding, followed by an ownership of 0.04% by the third-largest 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Kyochon Food&Beverage

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own the majority of Kyochon Food&Beverage Co., Ltd.. This means they can collectively make decisions for the company. So they have a ₩339b stake in this ₩462b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public holds a 22% stake in Kyochon Food&Beverage. 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 Kyochon Food&Beverage better, we need to consider many other factors. Be aware that Kyochon Food&Beverage is showing 3 warning signs in our investment analysis , you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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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