Retail investors are D&D Pharmatech Inc.'s (KOSDAQ:347850) biggest owners and were hit after market cap dropped ₩88b

Key Insights

• Significant control over D&D Pharmatech by retail investors implies that the general public has more power to influence management and governance-related decisions
• 43% of the business is held by the top 24 shareholders
• Insider ownership in D&D Pharmatech is 21%

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Every investor in D&D Pharmatech Inc. (KOSDAQ:347850) 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 retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders, who own 21% shares weren’t spared from last week’s ₩88b market cap drop, retail investors as a group suffered the maximum losses

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

See our latest analysis for D&D Pharmatech

What Does The Institutional Ownership Tell Us About D&D Pharmatech?

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.

We can see that D&D Pharmatech does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 D&D Pharmatech's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in D&D Pharmatech. The company's CEO Seul-ki Lee is the largest shareholder with 18% of shares outstanding. Rebright Holdings Limited Liability Company is the second largest shareholder owning 4.8% of common stock, and InterVest Co., Ltd. holds about 4.4% of the company stock.

On studying our ownership data, we found that 24 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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

Insider Ownership Of D&D Pharmatech

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 D&D Pharmatech Inc.. It is very interesting to see that insiders have a meaningful ₩381b stake in this ₩1.8t business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 57% stake in D&D Pharmatech, 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.

Private Company Ownership

It seems that Private Companies own 4.8%, of the D&D Pharmatech stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand D&D Pharmatech better, we need to consider many other factors. For example, we've discovered 1 warning sign for D&D Pharmatech that you should be aware of before investing here.

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.