Stock Analysis

Retail investors among Poongsan Corporation's (KRX:103140) largest shareholders, saw gain in holdings value after stock jumped 9.3% last week

Published
KOSE:A103140

Key Insights

  • Poongsan's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 3 investors have a majority stake in the company with 51% ownership
  • Institutional ownership in Poongsan is 21%

A look at the shareholders of Poongsan Corporation (KRX:103140) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 40% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors were the biggest beneficiaries of last week’s 9.3% gain.

Let's delve deeper into each type of owner of Poongsan, beginning with the chart below.

View our latest analysis for Poongsan

KOSE:A103140 Ownership Breakdown September 26th 2024

What Does The Institutional Ownership Tell Us About Poongsan?

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 Poongsan. 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 Poongsan's earnings history below. Of course, the future is what really matters.

KOSE:A103140 Earnings and Revenue Growth September 26th 2024

Poongsan is not owned by hedge funds. Poongsan Holdings Corporation is currently the company's largest shareholder with 39% of shares outstanding. National Pension Service is the second largest shareholder owning 9.8% of common stock, and The Vanguard Group, Inc. holds about 2.4% of the company stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Poongsan

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.

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 less than 1% of Poongsan Corporation. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ₩204m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Poongsan. 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.

Public Company Ownership

Public companies currently own 39% of Poongsan stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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 1 warning sign for Poongsan that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.