Individual investors among Hyosung Chemical Corporation's (KRX:298000) largest shareholders, saw gain in holdings value after stock jumped 12% last week

Key Insights

• Significant control over Hyosung Chemical by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 3 shareholders own 52% of the company
• Insider ownership in Hyosung Chemical is 20%

A look at the shareholders of Hyosung Chemical Corporation (KRX:298000) can tell us which group is most powerful. The group holding the most number of shares in the company, around 40% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, individual investors benefitted the most after the company's market cap rose by ₩16b last week.

In the chart below, we zoom in on the different ownership groups of Hyosung Chemical.

View our latest analysis for Hyosung Chemical

What Does The Institutional Ownership Tell Us About Hyosung 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 Hyosung Chemical. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Hyosung Chemical's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Hyosung Chemical. Our data shows that Hyosung Corporation is the largest shareholder with 33% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 6.2% of the 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.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Hyosung 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. 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.

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.

It seems insiders own a significant proportion of Hyosung Chemical Corporation. Insiders own ₩30b worth of shares in the ₩153b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 40% stake in Hyosung Chemical. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 33% of Hyosung Chemical stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hyosung Chemical better, we need to consider many other factors. Be aware that Hyosung Chemical is showing 3 warning signs in our investment analysis , and 2 of those are a bit concerning...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.