What Kind Of Investors Own Most Of Daejung Chemicals & Metals Co.,Ltd. (KOSDAQ:120240)?

If you want to know who really controls Daejung Chemicals & Metals Co.,Ltd. (KOSDAQ:120240), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Daejung Chemicals & MetalsLtd is not a large company by global standards. It has a market capitalization of ₩243b, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutional investors have not yet purchased much of the company. Let's take a closer look to see what the different types of shareholders can tell us about Daejung Chemicals & MetalsLtd.

See our latest analysis for Daejung Chemicals & MetalsLtd

What Does The Institutional Ownership Tell Us About Daejung Chemicals & MetalsLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Since institutions own only a small portion of Daejung Chemicals & MetalsLtd, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Daejung Chemicals & MetalsLtd is not owned by hedge funds. Our data shows that Ki-Sup Song is the largest shareholder with 37% of shares outstanding. Yeong-Jun Song is the second largest shareholder owning 14% of common stock, and Korea Securities Finance Corporation, Investment Arm holds about 3.8% of the company stock. Yeong-Jun Song, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Daejung Chemicals & MetalsLtd

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. 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 the majority of Daejung Chemicals & Metals Co.,Ltd.. This means they can collectively make decisions for the company. That means they own ₩126b worth of shares in the ₩243b company. That's quite meaningful. 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

With a 44% ownership, the general public have some degree of sway over Daejung Chemicals & MetalsLtd. 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 Daejung Chemicals & MetalsLtd better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Daejung Chemicals & MetalsLtd .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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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