Is Dongwha Pharm.Co.,Ltd (KRX:000020) Popular Amongst Insiders?

If you want to know who really controls Dongwha Pharm.Co.,Ltd (KRX:000020), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Dongwha Pharm.Co.Ltd is not a large company by global standards. It has a market capitalization of ₩544b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Dongwha Pharm.Co.Ltd.

Check out our latest analysis for Dongwha Pharm.Co.Ltd

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

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 Dongwha Pharm.Co.Ltd. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Dongwha Pharm.Co.Ltd, (below). Of course, keep in mind that there are other factors to consider, too.

Dongwha Pharm.Co.Ltd is not owned by hedge funds. The company's largest shareholder is Dongwha G & P Corporation, with ownership of 15%. In comparison, the second and third largest shareholders hold about 7.0% and 6.5% of the stock. 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 22 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far I 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

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.

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 information suggests that insiders maintain a significant holding in Dongwha Pharm.Co.,Ltd. Insiders own ₩62b worth of shares in the ₩544b 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 -- mostly retail investors -- own 55% of Dongwha Pharm.Co.Ltd. With this size 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 decline an acquisition or merger that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 22%, of the Dongwha Pharm.Co.Ltd stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Dongwha Pharm.Co.Ltd is showing 3 warning signs in our investment analysis , and 1 of those is significant...

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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