Individual investors among Cellid, Co., Ltd.'s (KOSDAQ:299660) largest stockholders and were hit after last week's 40% price drop

Key Insights

• Significant control over Cellid by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 8 investors have a majority stake in the company with 25% ownership
• Insiders own 16% of Cellid

Every investor in Cellid, Co., Ltd. (KOSDAQ:299660) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 48% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 40% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 16% stock also took a hit.

In the chart below, we zoom in on the different ownership groups of Cellid.

Check out our latest analysis for Cellid

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

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. Cellid's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Cellid is not owned by hedge funds. Our data shows that Chang-Yul Kang is the largest shareholder with 24% of shares outstanding. For context, the second largest shareholder holds about 0.9% of the shares outstanding, followed by an ownership of 0.1% by the third-largest shareholder.

Our studies suggest that the top 8 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Cellid

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Cellid, Co., Ltd.. It has a market capitalization of just ₩181b, and insiders have ₩29b worth of shares in their own names. 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 48% stake in Cellid. 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.

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. For example, we've discovered 4 warning signs for Cellid that you should be aware of before investing here.

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.