Following recent decline, AMOREPACIFIC Holdings Corp.'s (KRX:002790) top shareholder CEO Kyungbae Suh sees holdings value drop by 3.4%

Key Insights

• AMOREPACIFIC Holdings' significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Kyungbae Suh with a 53% stake
• Institutional ownership in AMOREPACIFIC Holdings is 14%

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A look at the shareholders of AMOREPACIFIC Holdings Corp. (KRX:002790) can tell us which group is most powerful. The group holding the most number of shares in the company, around 56% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 3.4% decline in share price, insiders suffered the most losses.

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

See our latest analysis for AMOREPACIFIC Holdings

What Does The Institutional Ownership Tell Us About AMOREPACIFIC Holdings?

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.

As you can see, institutional investors have a fair amount of stake in AMOREPACIFIC Holdings. 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. 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 AMOREPACIFIC Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in AMOREPACIFIC Holdings. Looking at our data, we can see that the largest shareholder is the CEO Kyungbae Suh with 53% 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. For context, the second largest shareholder holds about 5.8% of the shares outstanding, followed by an ownership of 2.8% by the third-largest shareholder.

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 AMOREPACIFIC Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 AMOREPACIFIC Holdings Corp. stock. This gives them a lot of power. Given it has a market cap of ₩2.1t, that means insiders have a whopping ₩1.2t worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for AMOREPACIFIC Holdings you should know about.

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.