Do Institutions Own GOLFZON NEWDIN HOLDINGS Co., Ltd. (KOSDAQ:121440) Shares?

A look at the shareholders of GOLFZON NEWDIN HOLDINGS Co., Ltd. (KOSDAQ:121440) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

GOLFZON NEWDIN HOLDINGS is not a large company by global standards. It has a market capitalization of ₩245b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about GOLFZON NEWDIN HOLDINGS.

Check out our latest analysis for GOLFZON NEWDIN HOLDINGS

What Does The Institutional Ownership Tell Us About GOLFZON NEWDIN HOLDINGS?

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.

GOLFZON NEWDIN HOLDINGS 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 GOLFZON NEWDIN HOLDINGS' historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in GOLFZON NEWDIN HOLDINGS. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In GOLFZON NEWDIN HOLDINGS' case, its Co-Chief Executive Officer, Won-Il Kim, is the largest shareholder, holding 44% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 11% of the stock. Interestingly, the third-largest shareholder, Young-Chan Kim is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of GOLFZON NEWDIN HOLDINGS

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems that insiders own more than half the GOLFZON NEWDIN HOLDINGS Co., Ltd. stock. This gives them a lot of power. That means they own ₩135b worth of shares in the ₩245b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 30% ownership, the general public have some degree of sway over GOLFZON NEWDIN HOLDINGS. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for GOLFZON NEWDIN HOLDINGS (of which 1 doesn't sit too well with us!) you should know about.

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. 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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