Individual investors among Dongwha Pharm.Co.,Ltd's (KRX:000020) largest stockholders and were hit after last week's 10% price drop

Key Insights

• Significant control over Dongwha Pharm.Co.Ltd by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 21 investors have a majority stake in the company with 43% ownership
• Insiders own 13% of Dongwha Pharm.Co.Ltd

A look at the shareholders of Dongwha Pharm.Co.,Ltd (KRX:000020) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 10% decline in share price, individual investors suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Dongwha Pharm.Co.Ltd.

View our latest analysis for Dongwha Pharm.Co.Ltd

What Does The Institutional Ownership Tell Us About Dongwha Pharm.Co.Ltd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Dongwha Pharm.Co.Ltd 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 Dongwha Pharm.Co.Ltd's earnings history below. Of course, the future is what really matters.

Dongwha Pharm.Co.Ltd is not owned by hedge funds. The company's largest shareholder is Dwp Holdings Corp., with ownership of 15%. Meanwhile, the second and third largest shareholders, hold 9.0% and 6.4%, of the shares outstanding, respectively. Doh Yoon, who is the second-largest shareholder, also happens to hold the title of Co-Chief Executive Officer.

A deeper look at our ownership data shows that the top 21 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 Dongwha Pharm.Co.Ltd

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Dongwha Pharm.Co.,Ltd. Insiders have a ₩25b stake in this ₩184b business. 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 -- including retail investors -- own 57% of Dongwha Pharm.Co.Ltd. 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.

Private Company Ownership

We can see that Private Companies own 16%, of the shares on issue. 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:

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. Case in point: We've spotted 2 warning signs for Dongwha Pharm.Co.Ltd you should be aware of.

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.