Dongkuk Steel Mill Company Limited's (KRX:460860) market cap surged ₩79b last week, public companies who have a lot riding on the company were rewarded

Key Insights

• The considerable ownership by public companies in Dongkuk Steel Mill indicates that they collectively have a greater say in management and business strategy
• 58% of the business is held by the top 4 shareholders
• 12% of Dongkuk Steel Mill is held by insiders

If you want to know who really controls Dongkuk Steel Mill Company Limited (KRX:460860), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 41% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit ₩478b market cap following a 20% gain in the stock.

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

View our latest analysis for Dongkuk Steel Mill

What Does The Institutional Ownership Tell Us About Dongkuk Steel Mill?

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 Dongkuk Steel Mill. 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 Dongkuk Steel Mill's earnings history below. Of course, the future is what really matters.

Dongkuk Steel Mill is not owned by hedge funds. Dongkuk Holdings Co.,Ltd. is currently the company's largest shareholder with 32% of shares outstanding. The second and third largest shareholders are JFE Holdings, Inc. and JFE Steel International Europe B.V, with an equal amount of shares to their name at 8.7%.

Our research also brought to light the fact that roughly 58% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Dongkuk Steel Mill

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.

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 Dongkuk Steel Mill Company Limited. Insiders have a ₩58b stake in this ₩478b business. 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-- including retail investors -- own 27% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 8.7%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

We can see that public companies hold 41% of the Dongkuk Steel Mill 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Dongkuk Steel Mill you should know about.

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.