CEO Hyun-Ok Han, CLIO Cosmetics Co.,Ltd's (KOSDAQ:237880) largest shareholder sees value of holdings go down 19% after recent drop

Key Insights

• CLIO CosmeticsLtd's significant insider ownership suggests inherent interests in company's expansion
• 50% of the company is held by a single shareholder (Hyun-Ok Han)
• Institutional ownership in CLIO CosmeticsLtd is 16%

If you want to know who really controls CLIO Cosmetics Co.,Ltd (KOSDAQ:237880), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 63% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to ₩317b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of CLIO CosmeticsLtd.

Check out our latest analysis for CLIO CosmeticsLtd

What Does The Institutional Ownership Tell Us About CLIO CosmeticsLtd?

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.

We can see that CLIO CosmeticsLtd does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see CLIO CosmeticsLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in CLIO CosmeticsLtd. Looking at our data, we can see that the largest shareholder is the CEO Hyun-Ok Han with 50% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. In comparison, the second and third largest shareholders hold about 12% and 6.0% 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of CLIO CosmeticsLtd

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems that insiders own more than half the CLIO Cosmetics Co.,Ltd stock. This gives them a lot of power. So they have a ₩199b stake in this ₩317b business. 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

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over CLIO CosmeticsLtd. 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 CLIO CosmeticsLtd better, we need to consider many other factors. For instance, we've identified 1 warning sign for CLIO CosmeticsLtd that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.