Retail investors are JUSUNG ENGINEERING Co.,Ltd.'s (KOSDAQ:036930) biggest owners and were hit after market cap dropped ₩75b

Key Insights

• The considerable ownership by retail investors in JUSUNG ENGINEERINGLtd indicates that they collectively have a greater say in management and business strategy
• A total of 7 investors have a majority stake in the company with 52% ownership
• 35% of JUSUNG ENGINEERINGLtd is held by insiders

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Every investor in JUSUNG ENGINEERING Co.,Ltd. (KOSDAQ:036930) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 42% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of retail investors took a hit after last week’s 5.7% price drop, insiders with their 35% also suffered.

Let's take a closer look to see what the different types of shareholders can tell us about JUSUNG ENGINEERINGLtd.

View our latest analysis for JUSUNG ENGINEERINGLtd

What Does The Institutional Ownership Tell Us About JUSUNG ENGINEERINGLtd?

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.

JUSUNG ENGINEERINGLtd 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. 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 JUSUNG ENGINEERINGLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in JUSUNG ENGINEERINGLtd. The company's CEO Chul-Joo Hwang is the largest shareholder with 31% of shares outstanding. National Pension Service is the second largest shareholder owning 4.1% of common stock, and Gyuok Choi holds about 4.0% of the company stock.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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

Insider Ownership Of JUSUNG ENGINEERINGLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 maintain a significant holding in JUSUNG ENGINEERING Co.,Ltd.. Insiders have a ₩432b stake in this ₩1.2t business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 42% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 6.3%, of the JUSUNG ENGINEERINGLtd stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand JUSUNG ENGINEERINGLtd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for JUSUNG ENGINEERINGLtd you should know about.

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.