What You Need To Know About CKD Bio Corp.'s (KRX:063160) Investor Composition

The big shareholder groups in CKD Bio Corp. (KRX:063160) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

CKD Bio is not a large company by global standards. It has a market capitalization of ₩362b, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about CKD Bio.

See our latest analysis for CKD Bio

What Does The Institutional Ownership Tell Us About CKD Bio?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that CKD Bio 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. 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 CKD Bio, (below). Of course, keep in mind that there are other factors to consider, too.

CKD Bio is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Chong Kun Dang Holdings Corp. with 39% of shares outstanding. Truston Asset Management Co., Ltd. is the second largest shareholder owning 4.8% of common stock, and Dimensional Fund Advisors L.P. holds about 0.9% of the company stock.

On studying our ownership data, we found that 13 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of CKD Bio

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 less than 1% of CKD Bio Corp.. It appears that the board holds about ₩189m worth of stock. This compares to a market capitalization of ₩362b. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- mostly retail investors -- own 50% of CKD Bio. 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.

Public Company Ownership

It appears to us that public companies own 39% of CKD Bio. 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 CKD Bio better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for CKD Bio (of which 2 are potentially serious!) you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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. 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.
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