Hansol Chemical Co., Ltd.'s (KRX:014680) large institutional owners must be happy as stock continues to impress, up 6.3% over the past week

Key Insights

• Significantly high institutional ownership implies Hansol Chemical's stock price is sensitive to their trading actions
• 52% of the business is held by the top 8 shareholders
• 13% of Hansol Chemical is held by insiders

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Every investor in Hansol Chemical Co., Ltd. (KRX:014680) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, institutional investors ended up benefitting the most after the company hit ₩2.4t in market cap. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 65%.

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

View our latest analysis for Hansol Chemical

What Does The Institutional Ownership Tell Us About Hansol Chemical?

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.

As you can see, institutional investors have a fair amount of stake in Hansol Chemical. 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 Hansol Chemical's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Hansol Chemical. National Pension Service is currently the company's largest shareholder with 13% of shares outstanding. The second and third largest shareholders are Baring Asset Management Limited and Hansol Chemical Co., Ltd, ESOP, with an equal amount of shares to their name at 6.6%.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Hansol Chemical

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. 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 Hansol Chemical Co., Ltd.. It has a market capitalization of just ₩2.4t, and insiders have ₩305b 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

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hansol Chemical. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hansol Chemical better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.