How Many NOROO PAINT & COATINGS Co., Ltd. (KRX:090350) Shares Do Institutions Own?

Every investor in NOROO PAINT & COATINGS Co., Ltd. (KRX:090350) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.

NOROO PAINT & COATINGS is not a large company by global standards. It has a market capitalization of ₩204b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about NOROO PAINT & COATINGS.

Check out our latest analysis for NOROO PAINT & COATINGS

What Does The Institutional Ownership Tell Us About NOROO PAINT & COATINGS?

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.

NOROO PAINT & COATINGS 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 NOROO PAINT & COATINGS, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in NOROO PAINT & COATINGS. The company's largest shareholder is NOROO Holdings Co., Ltd., with ownership of 49%. For context, the second largest shareholder holds about 4.9% of the shares outstanding, followed by an ownership of 1.2% by the third-largest shareholder.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

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 NOROO PAINT & COATINGS

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.

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.

We can see that insiders own shares in NOROO PAINT & COATINGS Co., Ltd.. In their own names, insiders own ₩5.4b worth of stock in the ₩204b company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

With a 41% ownership, the general public have some degree of sway over NOROO PAINT & COATINGS. 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

We can see that public companies hold 49% of the NOROO PAINT & COATINGS shares on issue. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for NOROO PAINT & COATINGS (1 can't be ignored) that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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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