Individual investors in Sam Chun Dang Pharm. Co., Ltd (KOSDAQ:000250) are its biggest bettors, and their bets paid off as stock gained 6.1% last week

Key Insights

• Significant control over Sam Chun Dang Pharm by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 44% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

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To get a sense of who is truly in control of Sam Chun Dang Pharm. Co., Ltd (KOSDAQ:000250), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 56% to be precise, is individual investors. 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, individual investors were the biggest beneficiaries of last week’s 6.1% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Sam Chun Dang Pharm.

View our latest analysis for Sam Chun Dang Pharm

What Does The Institutional Ownership Tell Us About Sam Chun Dang Pharm?

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.

Sam Chun Dang Pharm 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 Sam Chun Dang Pharm's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Sam Chun Dang Pharm. Looking at our data, we can see that the largest shareholder is Sowha Service Co., Ltd. with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.0% and 2.3% of the stock. Dae-In Yoon, who is the second-largest shareholder, also happens to hold the title of Co-Chief Executive Officer.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. 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 Sam Chun Dang Pharm

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can report that insiders do own shares in Sam Chun Dang Pharm. Co., Ltd. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around ₩262b worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of Sam Chun Dang Pharm shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

Our data indicates that Private Companies hold 31%, 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Sam Chun Dang Pharm better, we need to consider many other factors. Be aware that Sam Chun Dang Pharm is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.