Poongsan Holdings Corporation (KRX:005810) adds ₩203b in market cap and insiders have a 33% stake in that gain

Key Insights

• Significant insider control over Poongsan Holdings implies vested interests in company growth
• 60% of the business is held by the top 2 shareholders
• Institutional ownership in Poongsan Holdings is 12%

A look at the shareholders of Poongsan Holdings Corporation (KRX:005810) can tell us which group is most powerful. With 33% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 49% gain.

In the chart below, we zoom in on the different ownership groups of Poongsan Holdings.

See our latest analysis for Poongsan Holdings

What Does The Institutional Ownership Tell Us About Poongsan Holdings?

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.

Poongsan Holdings 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 Poongsan Holdings' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Poongsan Holdings. The company's largest shareholder is Jin Ryu, with ownership of 49%. With 11% and 2.9% of the shares outstanding respectively, VIP Research & Management Co., Ltd. and Norges Bank Investment Management are the second and third largest shareholders.

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.

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

Insider Ownership Of Poongsan Holdings

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 information suggests that insiders maintain a significant holding in Poongsan Holdings Corporation. Insiders own ₩134b worth of shares in the ₩412b company. 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

The general public, who are usually individual investors, hold a 22% stake in Poongsan Holdings. 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 Poongsan Holdings better, we need to consider many other factors. For instance, we've identified 2 warning signs for Poongsan Holdings that you should be aware of.

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.