Public companies in Dongkuk Steel Mill Company Limited (KRX:460860) are its biggest bettors, and their bets paid off as stock gained 10% last week

Key Insights

• Dongkuk Steel Mill's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 4 investors have a majority stake in the company with 56% ownership
• Insiders own 12% of Dongkuk Steel Mill

Every investor in Dongkuk Steel Mill Company Limited (KRX:460860) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 39% to be precise, is public companies. 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, public companies collectively scored the highest last week as the company hit ₩450b market cap following a 10% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Dongkuk Steel Mill.

See our latest analysis for Dongkuk Steel Mill

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

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Dongkuk Steel Mill already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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. The company's largest shareholder is Dongkuk Holdings Co.,Ltd., with ownership of 30%. 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%.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. 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. 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.

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.

It seems insiders own a significant proportion of Dongkuk Steel Mill Company Limited. Insiders have a ₩54b stake in this ₩450b business. 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-- 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

It appears to us that public companies own 39% of Dongkuk Steel Mill. 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 Dongkuk Steel Mill better, we need to consider many other factors. Take risks for example - Dongkuk Steel Mill has 1 warning sign we think 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.