INCAR FINANCIAL SERVICE Co., Ltd.'s (KOSDAQ:211050) market cap up ₩87b last week, benefiting both retail investors who own 49% as well as insiders

Key Insights

• Significant control over INCAR FINANCIAL SERVICE by retail investors implies that the general public has more power to influence management and governance-related decisions
• 50% of the business is held by the top 7 shareholders
• Insiders own 41% of INCAR FINANCIAL SERVICE

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To get a sense of who is truly in control of INCAR FINANCIAL SERVICE Co., Ltd. (KOSDAQ:211050), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Retail investors gained the most after market cap touched ₩689b last week, while insiders who own 41% also benefitted.

Let's delve deeper into each type of owner of INCAR FINANCIAL SERVICE, beginning with the chart below.

See our latest analysis for INCAR FINANCIAL SERVICE

What Does The Lack Of Institutional Ownership Tell Us About INCAR FINANCIAL SERVICE?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of INCAR FINANCIAL SERVICE, for yourself, below.

It looks like hedge funds own 5.4% of INCAR FINANCIAL SERVICE shares. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Our data shows that Byeong-Chae Choi is the largest shareholder with 27% of shares outstanding. With 6.3% and 5.4% of the shares outstanding respectively, Du-Seop Sim and MUST Asset Management Inc. are the second and third largest shareholders.

We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of INCAR FINANCIAL SERVICE

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of INCAR FINANCIAL SERVICE Co., Ltd.. It has a market capitalization of just ₩689b, and insiders have ₩281b 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

With a 49% ownership, the general public, mostly comprising of individual investors, have some degree of sway over INCAR FINANCIAL SERVICE. 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.

Private Company Ownership

It seems that Private Companies own 3.3%, of the INCAR FINANCIAL SERVICE stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand INCAR FINANCIAL SERVICE better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.

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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.