Individual investors invested in TegoScience Inc. (KOSDAQ:191420) up 14% last week, insiders too were rewarded

Key Insights

• The considerable ownership by individual investors in TegoScience indicates that they collectively have a greater say in management and business strategy
• 43% of the business is held by the top 6 shareholders
• Insiders own 42% of TegoScience

Every investor in TegoScience Inc. (KOSDAQ:191420) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 57% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 14% increase in the stock price last week, individual investors profited the most, but insiders who own 42% stock also stood to gain from the increase.

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

Check out our latest analysis for TegoScience

What Does The Lack Of Institutional Ownership Tell Us About TegoScience?

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 many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. TegoScience might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

TegoScience is not owned by hedge funds. With a 38% stake, CEO Saewha Jeon is the largest shareholder. With 4.8% and 0.1% of the shares outstanding respectively, Jaewook Jeon and Dimensional Fund Advisors LP are the second and third largest shareholders. Interestingly, the second-largest shareholder, Jaewook Jeon is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

On studying our ownership data, we found that 6 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 TegoScience

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 information suggests that insiders maintain a significant holding in TegoScience Inc.. It has a market capitalization of just ₩161b, and insiders have ₩68b 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 -- including retail investors -- own 57% of TegoScience. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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 be aware of the 3 warning signs we've spotted with TegoScience .

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.