Retail investors are Kolon Life Science Inc.'s (KOSDAQ:102940) biggest owners and were rewarded after market cap rose by ₩76b last week

Key Insights

• Significant control over Kolon Life Science by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 14 shareholders own 44% of the company
• 18% of Kolon Life Science is held by insiders

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A look at the shareholders of Kolon Life Science Inc. (KOSDAQ:102940) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, retail investors benefitted the most after the company's market cap rose by ₩76b last week.

Let's delve deeper into each type of owner of Kolon Life Science, beginning with the chart below.

Check out our latest analysis for Kolon Life Science

What Does The Lack Of Institutional Ownership Tell Us About Kolon Life Science?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. 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 Kolon Life Science, for yourself, below.

Hedge funds don't have many shares in Kolon Life Science. Our data shows that Kolon Corporation is the largest shareholder with 26% of shares outstanding. In comparison, the second and third largest shareholders hold about 18% and 0.2% of the stock.

Our studies suggest that the top 14 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.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Kolon Life Science

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

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 information suggests that insiders maintain a significant holding in Kolon Life Science Inc.. Insiders have a ₩79b stake in this ₩435b business. We 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

The general public, mostly comprising of individual investors, collectively holds 56% of Kolon Life Science 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.

Public Company Ownership

Public companies currently own 26% of Kolon Life Science stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Kolon Life Science better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Kolon Life Science .

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.