Individual investors who hold 55% of Zeus Co.,Ltd. (KOSDAQ:079370) gained 13%, insiders profited as well

Key Insights

• The considerable ownership by individual investors in ZeusLtd indicates that they collectively have a greater say in management and business strategy
• A total of 17 investors have a majority stake in the company with 45% ownership
• Insiders own 34% of ZeusLtd

Every investor in Zeus Co.,Ltd. (KOSDAQ:079370) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 55% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that benefitted the most from last week’s ₩40b market cap gain, insiders too had a 34% share in those profits.

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

View our latest analysis for ZeusLtd

What Does The Institutional Ownership Tell Us About ZeusLtd?

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.

ZeusLtd 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 ZeusLtd, (below). Of course, keep in mind that there are other factors to consider, too.

ZeusLtd is not owned by hedge funds. With a 30% stake, CEO Jong-Woo Lee is the largest shareholder. For context, the second largest shareholder holds about 3.4% of the shares outstanding, followed by an ownership of 3.1% by the third-largest shareholder. Interestingly, the third-largest shareholder, Dong-Ak Lee is also a Chairman of the Board, again, indicating strong insider ownership amongst the company's top shareholders.

A deeper look at our ownership data shows that the top 17 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of ZeusLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Zeus Co.,Ltd.. It has a market capitalization of just ₩352b, and insiders have ₩119b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 55% of ZeusLtd. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.