Hs Hyosung Advanced Materials' (KRX:298050) largest shareholders are individual investors who were rewarded as market cap surged ₩88b last week

Key Insights

• Significant control over Hs Hyosung Advanced Materials by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 3 shareholders own 54% of the company
• Insiders own 23% of Hs Hyosung Advanced Materials

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A look at the shareholders of Hs Hyosung Advanced Materials (KRX:298050) can tell us which group is most powerful. The group holding the most number of shares in the company, around 38% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors collectively scored the highest last week as the company hit ₩929b market cap following a 11% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Hs Hyosung Advanced Materials.

See our latest analysis for Hs Hyosung Advanced Materials

What Does The Institutional Ownership Tell Us About Hs Hyosung Advanced Materials?

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.

We can see that Hs Hyosung Advanced Materials does have institutional investors; and they hold a good portion of the company's stock. 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 Hs Hyosung Advanced Materials' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Hs Hyosung Advanced Materials. The company's largest shareholder is HS HYOSUNG Corporation, with ownership of 24%. Meanwhile, the second and third largest shareholders, hold 23% and 6.9%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Hs Hyosung Advanced Materials

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our information suggests that insiders maintain a significant holding in Hs Hyosung Advanced Materials. It has a market capitalization of just ₩929b, and insiders have ₩217b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 38% stake in Hs Hyosung Advanced Materials. 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

It appears to us that public companies own 24% of Hs Hyosung Advanced Materials. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for Hs Hyosung Advanced Materials (1 can't be ignored) 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.