GC Biopharma Corp.'s (KRX:006280) last week's 5.6% decline must have disappointed public companies who have a significant stake

Key Insights

• Significant control over GC Biopharma by public companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Green Cross Holdings Corporation with a 51% stake
• Institutions own 17% of GC Biopharma

A look at the shareholders of GC Biopharma Corp. (KRX:006280) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 5.6% decline in share price, public companies suffered the most losses.

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

See our latest analysis for GC Biopharma

What Does The Institutional Ownership Tell Us About GC Biopharma?

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 GC Biopharma does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see GC Biopharma's historic earnings and revenue below, but keep in mind there's always more to the story.

GC Biopharma is not owned by hedge funds. Green Cross Holdings Corporation is currently the largest shareholder, with 51% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 1.8% by the third-largest shareholder. Furthermore, CEO Il-Sup Huh is the owner of 0.6% of the company's shares.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of GC Biopharma

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own under 1% of GC Biopharma Corp. in their own names. Keep in mind that it's a big company, and the insiders own ₩18b worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 51% of GC Biopharma. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand GC Biopharma better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for GC Biopharma you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.