AMOREPACIFIC Group's (KRX:002790) CEO Kyungbae Suh is the most upbeat insider, and their holdings increased by 4.6% last week

Key Insights

• Insiders appear to have a vested interest in AMOREPACIFIC Group's growth, as seen by their sizeable ownership
• 55% of the company is held by a single shareholder (Kyungbae Suh)
• Institutional ownership in AMOREPACIFIC Group is 16%

A look at the shareholders of AMOREPACIFIC Group (KRX:002790) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 58% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 4.6% gain.

In the chart below, we zoom in on the different ownership groups of AMOREPACIFIC Group.

Check out our latest analysis for AMOREPACIFIC Group

What Does The Institutional Ownership Tell Us About AMOREPACIFIC Group?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

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

Hedge funds don't have many shares in AMOREPACIFIC Group. Looking at our data, we can see that the largest shareholder is the CEO Kyungbae Suh with 55% 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. National Pension Service is the second largest shareholder owning 6.4% of common stock, and Sung Hwan Welfare Fund holds about 2.7% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of AMOREPACIFIC Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 AMOREPACIFIC Group. This means they can collectively make decisions for the company. Insiders own ₩1.3t worth of shares in the ₩2.2t company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over AMOREPACIFIC Group. 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 AMOREPACIFIC Group better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for AMOREPACIFIC Group you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.