Retail investors among Youlchon Chemical Co.,Ltd.'s (KRX:008730) largest stockholders and were hit after last week's 12% price drop

Key Insights

• Significant control over Youlchon ChemicalLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• 56% of the business is held by the top 2 shareholders
• Insiders own 25% of Youlchon ChemicalLtd

A look at the shareholders of Youlchon Chemical Co.,Ltd. (KRX:008730) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 34% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to ₩722b last week, retail investors would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about Youlchon ChemicalLtd.

See our latest analysis for Youlchon ChemicalLtd

What Does The Institutional Ownership Tell Us About Youlchon ChemicalLtd?

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.

Youlchon ChemicalLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Youlchon ChemicalLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Youlchon ChemicalLtd. The company's largest shareholder is Nongshim Holdings Co.,Ltd., with ownership of 32%. For context, the second largest shareholder holds about 24% of the shares outstanding, followed by an ownership of 5.2% by the third-largest shareholder. Dong-Youn Shin, who is the second-largest shareholder, also happens to hold the title of Co-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 Youlchon ChemicalLtd

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 a reasonable proportion of Youlchon Chemical Co.,Ltd.. Insiders have a ₩177b stake in this ₩722b business. 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 34% stake in Youlchon ChemicalLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

It appears to us that public companies own 32% of Youlchon ChemicalLtd. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Youlchon ChemicalLtd better, we need to consider many other factors. Take risks for example - Youlchon ChemicalLtd has 3 warning signs (and 2 which are concerning) we think you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.