DB Securities Co., Ltd.'s (KRX:016610) last week's 13% decline must have disappointed retail investors who have a significant stake

Key Insights

• DB Securities' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 18 shareholders own 40% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

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Every investor in DB Securities Co., Ltd. (KRX:016610) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 13% decline in share price, retail investors suffered the most losses.

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

See our latest analysis for DB Securities

What Does The Institutional Ownership Tell Us About DB Securities?

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.

Institutions have a very small stake in DB Securities. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in DB Securities. DB Insurance Co., Ltd. is currently the largest shareholder, with 27% of shares outstanding. Kim Jun Gi is the second largest shareholder owning 5.8% of common stock, and Db Securities Co., Ltd.Employee Stock Ownership Association holds about 2.2% of the company stock.

Our studies suggest that the top 18 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 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of DB Securities

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.

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.

Shareholders would probably be interested to learn that insiders own shares in DB Securities Co., Ltd.. As individuals, the insiders collectively own ₩25b worth of the ₩349b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public -- including retail investors -- own 60% of DB Securities. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Public Company Ownership

We can see that public companies hold 27% of the DB Securities shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand DB Securities better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with DB Securities (including 1 which is concerning) .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.