LEENO Industrial Inc. (KOSDAQ:058470) institutional owners may be pleased with recent gains after 23% loss over the past year

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
• Insiders own 35% of LEENO Industrial

Our free stock report includes 1 warning sign investors should be aware of before investing in LEENO Industrial. Read for free now.

Every investor in LEENO Industrial Inc. (KOSDAQ:058470) should be aware of the most powerful shareholder groups. With 39% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors would probably welcome last week's 11% increase in the share price after a year of 23% losses as a sign that returns may to begin trending higher.

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

See our latest analysis for LEENO Industrial

What Does The Institutional Ownership Tell Us About LEENO Industrial?

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.

LEENO Industrial 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 LEENO Industrial's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in LEENO Industrial. The company's CEO Chae Yoon Lee is the largest shareholder with 35% of shares outstanding. With 9.2% and 4.9% of the shares outstanding respectively, Wasatch Advisors LP and National Pension Service are the second and third largest shareholders.

On looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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. 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 most recent data indicates that insiders own a reasonable proportion of LEENO Industrial Inc.. Insiders own ₩1.0t worth of shares in the ₩2.9t company. That's quite meaningful. 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

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over LEENO Industrial. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 example, we've discovered 1 warning sign for LEENO Industrial that you should be aware of before investing here.

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.