Stock Analysis

Public companies among Sam-A Aluminium Company, Limited's (KRX:006110) largest stockholders and were hit after last week's 11% price drop

KOSE:A006110
Source: Shutterstock

Key Insights

  • Sam-A Aluminium Company's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 4 investors have a majority stake in the company with 54% ownership
  • Insiders own 16% of Sam-A Aluminium Company

A look at the shareholders of Sam-A Aluminium Company, Limited (KRX:006110) can tell us which group is most powerful. With 45% stake, public companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 11% decline in share price, public companies suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Sam-A Aluminium Company.

See our latest analysis for Sam-A Aluminium Company

ownership-breakdown
KOSE:A006110 Ownership Breakdown November 7th 2024

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

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 Sam-A Aluminium Company, 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. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

earnings-and-revenue-growth
KOSE:A006110 Earnings and Revenue Growth November 7th 2024

Hedge funds don't have many shares in Sam-A Aluminium Company. Nippon Light Metal Holdings Company, Ltd. is currently the company's largest shareholder with 25% of shares outstanding. The second and third largest shareholders are Toyota Tsusho Corporation and LG Chem, Ltd., with an equal amount of shares to their name at 10%.

Our research also brought to light the fact that roughly 54% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Sam-A Aluminium Company

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Sam-A Aluminium Company, Limited. Insiders own ₩107b worth of shares in the ₩666b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 32% stake in the company, and hence can't 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.

Private Company Ownership

Our data indicates that Private Companies hold 3.1%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

It appears to us that public companies own 45% of Sam-A Aluminium Company. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Sam-A Aluminium Company has 3 warning signs we think you should be aware of.

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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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.