Public companies are Hyundai Motor Securities Co.,Ltd.'s (KRX:001500) biggest owners and were hit after market cap dropped ₩26b

Key Insights

• Hyundai Motor SecuritiesLtd's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 57% of the business is held by the top 3 shareholders
• Institutional ownership in Hyundai Motor SecuritiesLtd is 18%

To get a sense of who is truly in control of Hyundai Motor Securities Co.,Ltd. (KRX:001500), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, public companies endured the biggest losses as the stock fell by 11%.

Let's delve deeper into each type of owner of Hyundai Motor SecuritiesLtd, beginning with the chart below.

View our latest analysis for Hyundai Motor SecuritiesLtd

What Does The Institutional Ownership Tell Us About Hyundai Motor SecuritiesLtd?

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.

Hyundai Motor SecuritiesLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Hyundai Motor SecuritiesLtd's earnings history below. Of course, the future is what really matters.

Hyundai Motor SecuritiesLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Hyundai Motor Company with 25% of shares outstanding. With 16% and 16% of the shares outstanding respectively, Kclavis Asset Management and Hyundai Mobis Co.,Ltd are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hyundai Motor SecuritiesLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 suggests that insiders own under 1% of Hyundai Motor Securities Co.,Ltd. in their own names. It seems the board members have no more than ₩225m worth of shares in the ₩209b company. 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

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hyundai Motor SecuritiesLtd. 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.

Public Company Ownership

It appears to us that public companies own 46% of Hyundai Motor SecuritiesLtd. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 4 warning signs for Hyundai Motor SecuritiesLtd (1 is potentially serious!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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. 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.