Institutions along with public companies who hold considerable shares inTokai Carbon Korea Co., Ltd. (KOSDAQ:064760) come under pressure; lose 6.0% of holdings value

Key Insights

• The considerable ownership by public companies in Tokai Carbon Korea indicates that they collectively have a greater say in management and business strategy
• Tokai Carbon Co., Ltd. owns 51% of the company
• Institutions own 24% of Tokai Carbon Korea

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A look at the shareholders of Tokai Carbon Korea Co., Ltd. (KOSDAQ:064760) can tell us which group is most powerful. The group holding the most number of shares in the company, around 60% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions who own 24% came under pressure after market cap dropped to ₩1.1t last week,public companies took the most losses.

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

Check out our latest analysis for Tokai Carbon Korea

What Does The Institutional Ownership Tell Us About Tokai Carbon Korea?

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.

As you can see, institutional investors have a fair amount of stake in Tokai Carbon Korea. 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 Tokai Carbon Korea's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Tokai Carbon Korea. Tokai Carbon Co., Ltd. is currently the largest shareholder, with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. KC Co., Ltd. is the second largest shareholder owning 8.3% of common stock, and Baring Asset Management Limited holds about 6.9% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Tokai Carbon Korea

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tokai Carbon Korea. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 60% of Tokai Carbon Korea stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Tokai Carbon Korea better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Tokai Carbon Korea , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.