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- KOSDAQ:A011040
How Much Of Kyung Dong Pharmaceutical Co., Ltd. (KOSDAQ:011040) Do Insiders Own?
A look at the shareholders of Kyung Dong Pharmaceutical Co., Ltd. (KOSDAQ:011040) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
With a market capitalization of ₩341b, Kyung Dong Pharmaceutical is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Kyung Dong Pharmaceutical.
View our latest analysis for Kyung Dong Pharmaceutical
What Does The Institutional Ownership Tell Us About Kyung Dong Pharmaceutical?
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.
We can see that Kyung Dong Pharmaceutical does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Kyung Dong Pharmaceutical's historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Kyung Dong Pharmaceutical. Our data suggests that Gi-Sung Ryu, who is also the company's Co-Chief Executive Officer, holds the most number of shares at 24%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Meanwhile, the second and third largest shareholders, hold 13% and 5.5%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Deok-Hee Ryu is also Co-Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.
Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Kyung Dong Pharmaceutical
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.
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.
Our most recent data indicates that insiders own a reasonable proportion of Kyung Dong Pharmaceutical Co., Ltd.. Insiders own ₩151b worth of shares in the ₩341b company. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 37% ownership, the general public have some degree of sway over Kyung Dong Pharmaceutical. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
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. To that end, you should learn about the 3 warning signs we've spotted with Kyung Dong Pharmaceutical (including 1 which is makes us a bit uncomfortable) .
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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About KOSDAQ:A011040
Kyung Dong Pharmaceutical
Produces and sells ethical, pharmaceutical ingredient, and non-prescription medicines in South Korea.
Mediocre balance sheet unattractive dividend payer.