DongKoo Bio & Pharma Co., Ltd. (KOSDAQ:006620) surges 10%; individual investors who own 56% shares profited along with insiders

Key Insights

• Significant control over DongKoo Bio & Pharma by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 7 shareholders own 44% of the company
• 43% of DongKoo Bio & Pharma is held by insiders

Every investor in DongKoo Bio & Pharma Co., Ltd. (KOSDAQ:006620) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 56% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

While individual investors were the group that reaped the most benefits after last week’s 10% price gain, insiders also received a 43% cut.

Let's take a closer look to see what the different types of shareholders can tell us about DongKoo Bio & Pharma.

Check out our latest analysis for DongKoo Bio & Pharma

What Does The Lack Of Institutional Ownership Tell Us About DongKoo Bio & Pharma?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. 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 DongKoo Bio & Pharma, for yourself, below.

We note that hedge funds don't have a meaningful investment in DongKoo Bio & Pharma. Looking at our data, we can see that the largest shareholder is the CEO Cho Yong-Jun with 30% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 1.4% of the stock.

Our studies suggest that the top 7 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.

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 DongKoo Bio & Pharma

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 DongKoo Bio & Pharma Co., Ltd.. Insiders own ₩82b worth of shares in the ₩189b company. 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 -- including retail investors -- own 56% of DongKoo Bio & Pharma. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand DongKoo Bio & Pharma better, we need to consider many other factors. For example, we've discovered 2 warning signs for DongKoo Bio & Pharma (1 is a bit concerning!) that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.