DongKoo Bio & Pharma Co., Ltd. (KOSDAQ:006620) surges 13%; individual investors who own 55% shares profited along with insiders

Key Insights

• The considerable ownership by individual investors in DongKoo Bio & Pharma indicates that they collectively have a greater say in management and business strategy
• 45% of the business is held by the top 8 shareholders
• 44% of DongKoo Bio & Pharma is held by insiders

A look at the shareholders of DongKoo Bio & Pharma Co., Ltd. (KOSDAQ:006620) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 55% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that reaped the most benefits after last week’s 13% price gain, insiders also received a 44% cut.

Let's delve deeper into each type of owner of DongKoo Bio & Pharma, beginning with the chart below.

See 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 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 DongKoo Bio & Pharma, for yourself, below.

Hedge funds don't have many shares in DongKoo Bio & Pharma. Looking at our data, we can see that the largest shareholder is the CEO Cho Yong-Jun with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 1.4% of the stock.

A deeper look at our ownership data shows that the top 8 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 DongKoo Bio & Pharma

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems insiders own a significant proportion of DongKoo Bio & Pharma Co., Ltd.. It has a market capitalization of just ₩147b, and insiders have ₩65b 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 55% of DongKoo Bio & Pharma 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with DongKoo Bio & Pharma , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.