Retail investors invested in Kumho Petro Chemical Co.,Ltd (KRX:011780) copped the brunt of last week's ₩127b market cap decline

Key Insights

• Kumho Petro ChemicalLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 17 shareholders own 50% of the company
• 29% of Kumho Petro ChemicalLtd is held by insiders

A look at the shareholders of Kumho Petro Chemical Co.,Ltd (KRX:011780) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While the holdings of retail investors took a hit after last week’s 5.0% price drop, insiders with their 29% also suffered.

In the chart below, we zoom in on the different ownership groups of Kumho Petro ChemicalLtd.

Check out our latest analysis for Kumho Petro ChemicalLtd

What Does The Institutional Ownership Tell Us About Kumho Petro 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.

Kumho Petro 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Kumho Petro ChemicalLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Kumho Petro ChemicalLtd is not owned by hedge funds. Our data shows that Chul-Wan Park is the largest shareholder with 12% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.7% and 8.4%, of the shares outstanding, respectively. Jun-Kyung Park, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 17 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Kumho Petro ChemicalLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own a reasonable proportion of Kumho Petro Chemical Co.,Ltd. It has a market capitalization of just ₩2.3t, and insiders have ₩679b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 46% stake in Kumho Petro ChemicalLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Kumho Petro ChemicalLtd is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.