Insiders were the biggest winners as Cosmecca Korea Co., Ltd.'s (KOSDAQ:241710) market cap grew by ₩69b last week

Key Insights

• Cosmecca Korea's significant insider ownership suggests inherent interests in company's expansion
• A total of 5 investors have a majority stake in the company with 55% ownership
• Institutions own 30% of Cosmecca Korea

A look at the shareholders of Cosmecca Korea Co., Ltd. (KOSDAQ:241710) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit ₩963b market cap following a 7.8% gain in the stock.

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

Check out our latest analysis for Cosmecca Korea

What Does The Institutional Ownership Tell Us About Cosmecca Korea?

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.

As you can see, institutional investors have a fair amount of stake in Cosmecca Korea. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Cosmecca Korea'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 Cosmecca Korea. Our data shows that Eun-Hee Park is the largest shareholder with 25% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 7.7%, of the shares outstanding, respectively.

On looking further, we found that 55% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Cosmecca Korea

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 a reasonable proportion of Cosmecca Korea Co., Ltd.. It has a market capitalization of just ₩963b, and insiders have ₩442b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Cosmecca Korea. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.