Tokai Carbon Korea Co., Ltd.'s (KOSDAQ:064760) market cap surged ₩77b last week, public companies who have a lot riding on the company were rewarded

Key Insights

• Tokai Carbon Korea's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 59% of the business is held by the top 2 shareholders
• Institutional ownership in Tokai Carbon Korea is 20%

If you want to know who really controls Tokai Carbon Korea Co., Ltd. (KOSDAQ:064760), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 59% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit ₩1.6t market cap following a 5.1% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Tokai Carbon Korea.

View 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. 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 Tokai Carbon Korea, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Tokai Carbon Korea. Tokai Carbon Co., Ltd. is currently the company's largest shareholder with 47% of shares outstanding. With 11% and 4.1% of the shares outstanding respectively, KC Co., Ltd. and Wasatch Advisors LP are the second and third largest shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Tokai Carbon Korea

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

Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public-- including retail investors -- own 21% 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.

Public Company Ownership

Public companies currently own 59% of Tokai Carbon Korea stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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 - Tokai Carbon Korea has 1 warning sign we think you should be aware of.

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.