How Much Of Sam-A Aluminium Company, Limited (KRX:006110) Do Insiders Own?

A look at the shareholders of Sam-A Aluminium Company, Limited (KRX:006110) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of ₩127b, Sam-A Aluminium Company is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about Sam-A Aluminium Company.

See our latest analysis for Sam-A Aluminium Company

What Does The Lack Of Institutional Ownership Tell Us About Sam-A Aluminium Company?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Sam-A Aluminium Company's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Sam-A Aluminium Company is not owned by hedge funds. Our data shows that Nippon Light Metal Holdings Company, Ltd. is the largest shareholder with 33% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.9% and 7.3%, of the shares outstanding, respectively. Nam-Hui Han, who is the second-largest shareholder, also happens to hold the title of President.

To make our study more interesting, we found that the top 3 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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Sam-A Aluminium Company

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.

It seems insiders own a significant proportion of Sam-A Aluminium Company, Limited. Insiders own ₩22b worth of shares in the ₩127b 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, with a 47% stake in the company, will not easily be ignored. 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.

Public Company Ownership

Public companies currently own 33% of Sam-A Aluminium Company stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Sam-A Aluminium Company better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Sam-A Aluminium Company (of which 2 are significant!) you should know about.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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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