Institutional investors control 56% of Hanwha Investment & Securities Co., Ltd. (KRX:003530) and were rewarded last week after stock increased 14%

Key Insights

• Institutions' substantial holdings in Hanwha Investment & Securities implies that they have significant influence over the company's share price
• The top 2 shareholders own 52% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Our free stock report includes 2 warning signs investors should be aware of before investing in Hanwha Investment & Securities. Read for free now.

If you want to know who really controls Hanwha Investment & Securities Co., Ltd. (KRX:003530), then you'll have to look at the makeup of its share registry. With 56% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And as as result, institutional investors reaped the most rewards after the company's stock price gained 14% last week. One-year return to shareholders is currently 21% and last week’s gain was the icing on the cake.

Let's take a closer look to see what the different types of shareholders can tell us about Hanwha Investment & Securities.

See our latest analysis for Hanwha Investment & Securities

What Does The Institutional Ownership Tell Us About Hanwha Investment & Securities?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Hanwha Investment & Securities 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 Hanwha Investment & Securities' earnings history below. Of course, the future is what really matters.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hanwha Investment & Securities is not owned by hedge funds. Hanwha Asset Management Co. Ltd. is currently the largest shareholder, with 46% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.4% and 1.9% of the stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hanwha Investment & Securities

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.

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 Hanwha Investment & Securities Co., Ltd. in their own names. It seems the board members have no more than ₩424m worth of shares in the ₩900b company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 43% stake in Hanwha Investment & Securities. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hanwha Investment & Securities better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Hanwha Investment & Securities .

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.