CHUNGDAMGLOBAL Co., Ltd.'s (KOSDAQ:362320) most bullish insider is CEO Seokju Choi, and their holdings value went up by 19% last week

Key Insights

• Insiders appear to have a vested interest in CHUNGDAMGLOBAL's growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 51% ownership
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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Every investor in CHUNGDAMGLOBAL Co., Ltd. (KOSDAQ:362320) should be aware of the most powerful shareholder groups. With 62% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by ₩33b last week.

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

See our latest analysis for CHUNGDAMGLOBAL

What Does The Lack Of Institutional Ownership Tell Us About CHUNGDAMGLOBAL?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. CHUNGDAMGLOBAL might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

CHUNGDAMGLOBAL is not owned by hedge funds. The company's CEO Seokju Choi is the largest shareholder with 41% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.8% and 6.2% of the stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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 CHUNGDAMGLOBAL

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.

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 information suggests that insiders own more than half of CHUNGDAMGLOBAL Co., Ltd.. This gives them effective control of the company. So they have a ₩129b stake in this ₩206b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over CHUNGDAMGLOBAL. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for CHUNGDAMGLOBAL that you should be aware of.

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. 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.