L&C BIO Co.,LTD's (KOSDAQ:290650) market cap dropped ₩58b last week; Individual investors bore the brunt

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
• 47% of the business is held by the top 25 shareholders
• Insiders own 30% of L&C BIOLTD

If you want to know who really controls L&C BIO Co.,LTD (KOSDAQ:290650), then you'll have to look at the makeup of its share registry. With 53% 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 insiders who own 30% came under pressure after market cap dropped to ₩473b last week,individual investors took the most losses.

Let's delve deeper into each type of owner of L&C BIOLTD, beginning with the chart below.

See our latest analysis for L&C BIOLTD

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

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.

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. 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 L&C BIOLTD's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in L&C BIOLTD. Hwan-Cheol Lee is currently the company's 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of L&C BIOLTD

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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. It has a market capitalization of just ₩473b, and insiders have ₩141b 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, who are usually individual investors, hold a substantial 53% stake in L&C BIOLTD, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

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

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.