Stock Analysis

What Is The Ownership Structure Like For Seegene, Inc. (KOSDAQ:096530)?

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KOSDAQ:A096530
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If you want to know who really controls Seegene, Inc. (KOSDAQ:096530), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Seegene is a pretty big company. It has a market capitalization of ₩4.4t. Normally institutions would own a significant portion of a company this size. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Seegene.

View our latest analysis for Seegene

ownership-breakdown
KOSDAQ:A096530 Ownership Breakdown January 22nd 2021

What Does The Institutional Ownership Tell Us About Seegene?

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.

Seegene already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Seegene's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
KOSDAQ:A096530 Earnings and Revenue Growth January 22nd 2021

Seegene is not owned by hedge funds. With a 26% stake, CEO Jong-Youn Cheon is the largest shareholder. In comparison, the second and third largest shareholders hold about 3.9% and 3.7% of the stock.

A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Seegene

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Seegene, Inc.. It has a market capitalization of just ₩4.4t, and insiders have ₩1.6t worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 45% ownership, the general public have some degree of sway over Seegene. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Seegene better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Seegene (including 2 which are a bit concerning) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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:A096530

Seegene

Seegene, Inc. manufactures and sells molecular diagnostics products worldwide.

Flawless balance sheet, good value and pays a dividend.

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