Individual investors own 11% of Samsung Card Co., Ltd. (KRX:029780) shares but public companies control 78% of the company

Key Insights

• Samsung Card's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 78% of the company is held by a single shareholder (Samsung Life Insurance Co., Ltd.)
• Institutional ownership in Samsung Card is 11%

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To get a sense of who is truly in control of Samsung Card Co., Ltd. (KRX:029780), 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 78% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 11% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Samsung Card.

See our latest analysis for Samsung Card

What Does The Institutional Ownership Tell Us About Samsung Card?

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.

We can see that Samsung Card does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Samsung Card's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Samsung Card. Our data shows that Samsung Life Insurance Co., Ltd. is the largest shareholder with 78% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 6.5% 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Samsung Card

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.

Our data suggests that insiders own under 1% of Samsung Card Co., Ltd. in their own names. Keep in mind that it's a big company, and the insiders own ₩419m worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 11% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 78% of Samsung Card. 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 Samsung Card better, we need to consider many other factors. Take risks for example - Samsung Card has 4 warning signs (and 2 which are concerning) we think 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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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.