Pum-Tech Korea Co., Ltd (KOSDAQ:251970) adds ₩55b in market cap and insiders have a 60% stake in that gain

Key Insights

• Pum-Tech Korea's significant insider ownership suggests inherent interests in company's expansion
• The top 2 shareholders own 53% of the company
• 15% of Pum-Tech Korea is held by Institutions

To get a sense of who is truly in control of Pum-Tech Korea Co., Ltd (KOSDAQ:251970), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by ₩55b last week.

In the chart below, we zoom in on the different ownership groups of Pum-Tech Korea.

View our latest analysis for Pum-Tech Korea

What Does The Institutional Ownership Tell Us About Pum-Tech Korea?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Pum-Tech Korea already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Pum-Tech Korea's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Pum-Tech Korea. Looking at our data, we can see that the largest shareholder is Dohoon Lee with 36% of shares outstanding. In comparison, the second and third largest shareholders hold about 17% and 8.6% of the stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Pum-Tech Korea

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 most recent data indicates that insiders own the majority of Pum-Tech Korea Co., Ltd. This means they can collectively make decisions for the company. So they have a ₩282b stake in this ₩471b business. 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 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Pum-Tech Korea. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Pum-Tech Korea better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Pum-Tech Korea you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.