Stock Analysis

Individual investors among Com2uS Holdings Corporation's (KOSDAQ:063080) largest stockholders and were hit after last week's 11% price drop

KOSDAQ:A063080
Source: Shutterstock

Key Insights

  • Com2uS Holdings' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 16 investors have a majority stake in the company with 42% ownership
  • Insiders own 36% of Com2uS Holdings

If you want to know who really controls Com2uS Holdings Corporation (KOSDAQ:063080), 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 58% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 36% came under pressure after market cap dropped to ₩140b last week,individual investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Com2uS Holdings.

View our latest analysis for Com2uS Holdings

ownership-breakdown
KOSDAQ:A063080 Ownership Breakdown September 6th 2024

What Does The Institutional Ownership Tell Us About Com2uS Holdings?

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.

As you can see, institutional investors have a fair amount of stake in Com2uS Holdings. 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. 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 Com2uS Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
KOSDAQ:A063080 Earnings and Revenue Growth September 6th 2024

Hedge funds don't have many shares in Com2uS Holdings. Looking at our data, we can see that the largest shareholder is the CEO Byung-Jun Song with 35% of shares outstanding. With 2.6% and 1.1% of the shares outstanding respectively, The Vanguard Group, Inc. and Jaejoon Song are the second and third largest shareholders. Interestingly, the third-largest shareholder, Jaejoon Song is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

A deeper look at our ownership data shows that the top 16 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Com2uS Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Com2uS Holdings Corporation. It has a market capitalization of just ₩140b, and insiders have ₩50b worth of shares in their own names. 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, mostly comprising of individual investors, collectively holds 58% of Com2uS Holdings shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Com2uS Holdings is showing 2 warning signs in our investment analysis , you should know about...

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.