Insiders were the biggest winners as LifeSemantics Corp.'s (KOSDAQ:347700) market cap grew by ₩20b last week

Key Insights

• LifeSemantics' significant insider ownership suggests inherent interests in company's expansion
• 63% of the company is held by a single shareholder (Kwang-Soo Choi)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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A look at the shareholders of LifeSemantics Corp. (KOSDAQ:347700) can tell us which group is most powerful. The group holding the most number of shares in the company, around 79% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by ₩20b last week.

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

Check out our latest analysis for LifeSemantics

What Does The Lack Of Institutional Ownership Tell Us About LifeSemantics?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

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. LifeSemantics' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

LifeSemantics is not owned by hedge funds. Kwang-Soo Choi is currently the company's largest shareholder with 63% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 6.7% and 5.2% of the stock.

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. 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 LifeSemantics

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 LifeSemantics Corp.. This means they can collectively make decisions for the company. Given it has a market cap of ₩181b, that means they have ₩143b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 16% stake in LifeSemantics. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand LifeSemantics better, we need to consider many other factors. For instance, we've identified 3 warning signs for LifeSemantics (2 are potentially serious) that you should be aware of.

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.