CLIO Cosmetics Co.,Ltd's (KOSDAQ:237880) largest shareholder, CEO Hyun-Ok Han sees holdings value fall by 18% following recent drop

Key Insights

• Significant insider control over CLIO CosmeticsLtd implies vested interests in company growth
• The largest shareholder of the company is Hyun-Ok Han with a 50% stake
• Institutional ownership in CLIO CosmeticsLtd is 15%

Our free stock report includes 1 warning sign investors should be aware of before investing in CLIO CosmeticsLtd. Read for free now.

A look at the shareholders of CLIO Cosmetics Co.,Ltd (KOSDAQ:237880) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 63% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to ₩282b 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.

CLIO CosmeticsLtd 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of CLIO CosmeticsLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment 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. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. Myung-Ha Hong is the second largest shareholder owning 12% of common stock, and VIP Research & Management Co., Ltd. holds about 6.9% of the company 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own the majority of CLIO Cosmetics Co.,Ltd. This means they can collectively make decisions for the company. That means they own ₩177b worth of shares in the ₩282b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over CLIO CosmeticsLtd. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with CLIO CosmeticsLtd , and understanding them should be part of your investment process.

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.