Retail investors invested in SAMG Entertainment Co., Ltd. (KOSDAQ:419530) copped the brunt of last week's ₩84b market cap decline

Key Insights

• The considerable ownership by retail investors in SAMG Entertainment indicates that they collectively have a greater say in management and business strategy
• 40% of the business is held by the top 12 shareholders
• Insiders own 17% of SAMG Entertainment

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If you want to know who really controls SAMG Entertainment Co., Ltd. (KOSDAQ:419530), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 16% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 17% stock also took a hit.

In the chart below, we zoom in on the different ownership groups of SAMG Entertainment.

View our latest analysis for SAMG Entertainment

What Does The Institutional Ownership Tell Us About SAMG Entertainment?

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 SAMG Entertainment. 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 SAMG Entertainment's earnings history below. Of course, the future is what really matters.

SAMG Entertainment is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Suhoon Kim with 16% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.1% and 4.5%, of the shares outstanding, respectively.

Our studies suggest that the top 12 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 SAMG Entertainment

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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in SAMG Entertainment Co., Ltd.. It has a market capitalization of just ₩434b, and insiders have ₩74b 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, mostly comprising of individual investors, collectively holds 60% of SAMG Entertainment 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:

It's always worth thinking about the different groups who own shares in a company. But to understand SAMG Entertainment better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for SAMG Entertainment you should be aware of, and 2 of them are potentially serious.

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.