Institutional investors control 41% of LEENO Industrial Inc. (KOSDAQ:058470) and were rewarded last week after stock increased 9.7%

Key Insights

• Given the large stake in the stock by institutions, LEENO Industrial's stock price might be vulnerable to their trading decisions
• A total of 4 investors have a majority stake in the company with 51% ownership
• Insider ownership in LEENO Industrial is 35%

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. We can see that institutions own the lion's share in the company with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, institutional investors ended up benefitting the most after the company hit ₩3.0t in market cap. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 36%.

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

Check out our latest analysis for LEENO Industrial

What Does The Institutional Ownership Tell Us About LEENO Industrial?

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.

LEENO Industrial already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 LEENO Industrial, (below). Of course, keep in mind that there are other factors to consider, too.

LEENO Industrial is not owned by hedge funds. The company's CEO Chae Yoon Lee is the largest shareholder with 35% of shares outstanding. With 9.2% and 4.5% of the shares outstanding respectively, Wasatch Advisors LP and National Pension Service are the second and third largest shareholders.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 LEENO Industrial

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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 LEENO Industrial Inc.. It is very interesting to see that insiders have a meaningful ₩1.0t stake in this ₩3.0t business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in LEENO Industrial. 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. Take risks for example - LEENO Industrial has 2 warning signs (and 1 which is a bit concerning) we think you should know about.

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.