Stock Analysis

Here's What It'S Hanbul Co., Ltd.'s (KRX:226320) Shareholder Ownership Structure Looks Like

KOSE:A226320
Source: Shutterstock

A look at the shareholders of It'S Hanbul Co., Ltd. (KRX:226320) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

It'S Hanbul is a smaller company with a market capitalization of ₩477b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about It'S Hanbul.

Check out our latest analysis for It'S Hanbul

ownership-breakdown
KOSE:A226320 Ownership Breakdown March 16th 2021

What Does The Lack Of Institutional Ownership Tell Us About It'S Hanbul?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. It'S Hanbul might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

earnings-and-revenue-growth
KOSE:A226320 Earnings and Revenue Growth March 16th 2021

We note that hedge funds don't have a meaningful investment in It'S Hanbul. Byung-Chul Lim is currently the largest shareholder, with 76% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 0.3% of the shares outstanding, followed by an ownership of 0.3% by the third-largest shareholder.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of It'S Hanbul

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. 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.

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.

Our most recent data indicates that insiders own the majority of It'S Hanbul Co., Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of ₩477b, that means they have ₩365b worth of shares. 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

The general public holds a 23% stake in It'S Hanbul. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand It'S Hanbul better, we need to consider many other factors. For instance, we've identified 1 warning sign for It'S Hanbul that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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. 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.
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