Daewoong Pharmaceutical Co., Ltd's (KRX:069620) market cap touched ₩1.7t last week, benefiting both public companies who own 53% as well as institutions

Key Insights

• The considerable ownership by public companies in Daewoong Pharmaceutical indicates that they collectively have a greater say in management and business strategy
• Daewoong Co., Ltd. owns 53% of the company
• 24% of Daewoong Pharmaceutical is held by Institutions

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Every investor in Daewoong Pharmaceutical Co., Ltd (KRX:069620) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Public companies gained the most after market cap touched ₩1.7t last week, while institutions who own 24% also benefitted.

Let's delve deeper into each type of owner of Daewoong Pharmaceutical, beginning with the chart below.

See our latest analysis for Daewoong Pharmaceutical

What Does The Institutional Ownership Tell Us About Daewoong Pharmaceutical?

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.

Daewoong Pharmaceutical already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Daewoong Pharmaceutical's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Daewoong Pharmaceutical. Our data shows that Daewoong Co., Ltd. is the largest shareholder with 53% of shares outstanding. This implies that they have majority interest control of the future of the company. With 10% and 8.7% of the shares outstanding respectively, National Pension Service and Daewoong Foundation are the second and third largest shareholders.

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 Daewoong Pharmaceutical

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own less than 1% of Daewoong Pharmaceutical Co., Ltd. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ₩8.1b worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Daewoong Pharmaceutical. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

It appears to us that public companies own 53% of Daewoong Pharmaceutical. 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:

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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Daewoong Pharmaceutical (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.