Public companies invested in Chosun Refractories Co.,Ltd. (KRX:462520) up 12% last week, insiders too were rewarded

Key Insights

• Chosun RefractoriesLtd's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 59% of the company is held by a single shareholder (CR Holdings Co., LTD.)
• Insiders own 17% of Chosun RefractoriesLtd

A look at the shareholders of Chosun Refractories Co.,Ltd. (KRX:462520) can tell us which group is most powerful. The group holding the most number of shares in the company, around 59% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While public companies were the group that benefitted the most from last week’s ₩22b market cap gain, insiders too had a 17% share in those profits.

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

See our latest analysis for Chosun RefractoriesLtd

What Does The Lack Of Institutional Ownership Tell Us About Chosun RefractoriesLtd?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Chosun RefractoriesLtd, for yourself, below.

Chosun RefractoriesLtd is not owned by hedge funds. The company's largest shareholder is CR Holdings Co., LTD., with ownership of 59%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 13% and 7.9% of the shares outstanding respectively, In-Ok Lee and Daehan Ceramics Co., Ltd. are the second and third largest shareholders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Chosun RefractoriesLtd

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. 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 most recent data indicates that insiders own a reasonable proportion of Chosun Refractories Co.,Ltd.. Insiders have a ₩35b stake in this ₩212b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. 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.

Private Company Ownership

Our data indicates that Private Companies hold 8.1%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

We can see that public companies hold 59% of the Chosun RefractoriesLtd 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Chosun RefractoriesLtd better, we need to consider many other factors. Be aware that Chosun RefractoriesLtd is showing 4 warning signs in our investment analysis , and 2 of those are 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.