Public companies in HK inno.N Corporation (KOSDAQ:195940) are its biggest bettors, and their bets paid off as stock gained 7.3% last week

Key Insights

• The considerable ownership by public companies in HK inno.N indicates that they collectively have a greater say in management and business strategy
• 55% of the business is held by the top 3 shareholders
• Institutional ownership in HK inno.N is 14%

To get a sense of who is truly in control of HK inno.N Corporation (KOSDAQ:195940), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 43% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, public companies benefitted the most after the company's market cap rose by ₩72b last week.

Let's delve deeper into each type of owner of HK inno.N, beginning with the chart below.

Check out our latest analysis for HK inno.N

What Does The Institutional Ownership Tell Us About HK inno.N?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that HK inno.N does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 HK inno.N's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in HK inno.N. Looking at our data, we can see that the largest shareholder is Kolmar Korea Co., Ltd. with 43% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.6% and 5.2% of the stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of HK inno.N

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.

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 HK inno.N Corporation insiders own under 1% of the company. It appears that the board holds about ₩72m worth of stock. This compares to a market capitalization of ₩1.1t. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 38% stake in HK inno.N. 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.

Public Company Ownership

We can see that public companies hold 43% of the HK inno.N shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand HK inno.N better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com