LG H&H Co., Ltd.'s (KRX:051900) biggest owners are individual investors who got richer after stock soared 3.8% last week

Key Insights

• Significant control over LG H&H by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 11 shareholders own 50% of the company
• Institutional ownership in LG H&H is 24%

If you want to know who really controls LG H&H Co., Ltd. (KRX:051900), then you'll have to look at the makeup of its share registry. With 44% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors collectively scored the highest last week as the company hit ₩5.1t market cap following a 3.8% gain in the stock.

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

Check out our latest analysis for LG H&H

What Does The Institutional Ownership Tell Us About LG H&H?

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.

LG H&H already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 LG H&H's earnings history below. Of course, the future is what really matters.

LG H&H is not owned by hedge funds. LG Corp. is currently the company's largest shareholder with 32% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.0% and 2.6% of the stock.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 LG H&H

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 information suggests that LG H&H Co., Ltd. insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own ₩556m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 44% ownership, the general public, mostly comprising of individual investors, have some degree of sway over LG H&H. 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.

Public Company Ownership

Public companies currently own 32% of LG H&H stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand LG H&H better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with LG H&H .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.