Following recent decline, LEENO Industrial Inc.'s (KOSDAQ:058470) top shareholder CEO Chae Yoon Lee sees holdings value drop by 3.7%

Key Insights

• Insiders appear to have a vested interest in LEENO Industrial's growth, as seen by their sizeable ownership
• A total of 5 investors have a majority stake in the company with 52% ownership
• 32% of LEENO Industrial is held by Institutions

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To get a sense of who is truly in control of LEENO Industrial Inc. (KOSDAQ:058470), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 35% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 3.7%.

In the chart below, we zoom in on the different ownership groups of LEENO Industrial.

Check out our latest analysis for LEENO Industrial

What Does The Institutional Ownership Tell Us About LEENO Industrial?

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.

As you can see, institutional investors have a fair amount of stake in LEENO Industrial. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at LEENO Industrial's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in LEENO Industrial. Looking at our data, we can see that the largest shareholder is the CEO Chae Yoon Lee with 35% of shares outstanding. With 5.1% and 4.9% of the shares outstanding respectively, Mirae Asset Global Investments Co., Ltd. and National Pension Service are the second and third largest shareholders.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of LEENO Industrial

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of LEENO Industrial Inc.. It is very interesting to see that insiders have a meaningful ₩1.4t stake in this ₩4.1t business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 33% stake in the company, and hence can't easily be ignored. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand LEENO Industrial better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for LEENO Industrial you should be aware of.

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.