L&C BIO Co.,LTD's (KOSDAQ:290650) 14% gain last week benefited both individual investors who own 52% as well as insiders

Key Insights

• The considerable ownership by individual investors in L&C BIOLTD indicates that they collectively have a greater say in management and business strategy
• 48% of the business is held by the top 25 shareholders
• Insiders own 30% of L&C BIOLTD

To get a sense of who is truly in control of L&C BIO Co.,LTD (KOSDAQ:290650), it is important to understand the ownership structure of the business. With 52% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that reaped the most benefits after last week’s 14% price gain, insiders also received a 30% cut.

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

View our latest analysis for L&C BIOLTD

What Does The Institutional Ownership Tell Us About L&C BIOLTD?

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.

As you can see, institutional investors have a fair amount of stake in L&C BIOLTD. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of L&C BIOLTD, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in L&C BIOLTD. Hwan-Cheol Lee is currently the largest shareholder, with 30% of shares outstanding. VIP Research & Management Co., Ltd. is the second largest shareholder owning 6.6% of common stock, and Norges Bank Investment Management holds about 3.1% of the company stock.

Our studies suggest that the top 25 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.

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. 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 L&C BIOLTD

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own a reasonable proportion of L&C BIO Co.,LTD. Insiders own ₩139b worth of shares in the ₩466b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 52% stake in L&C BIOLTD, suggesting it is a fairly popular stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with L&C BIOLTD .

Of course this may not be the best stock to buy. So take a peek at this free 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.