Retail investors who hold 57% of Zeus Co.,Ltd. (KOSDAQ:079370) gained 18%, insiders profited as well

Key Insights

• Significant control over ZeusLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 13 shareholders own 43% of the company
• Insider ownership in ZeusLtd is 34%

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If you want to know who really controls Zeus Co.,Ltd. (KOSDAQ:079370), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 18% increase in the stock price last week, retail investors profited the most, but insiders who own 34% stock also stood to gain from the increase.

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

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.

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

ZeusLtd is not owned by hedge funds. With a 30% stake, CEO Jong-Woo Lee is the largest shareholder. Zeus Co., Ltd., Employee Welfare Fund is the second largest shareholder owning 3.4% of common stock, and Dong-Ak Lee holds about 3.1% of the company stock. 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.

Our studies suggest that the top 13 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of ZeusLtd

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. 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.

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.

It seems insiders own a significant proportion of Zeus Co.,Ltd.. Insiders own ₩160b worth of shares in the ₩473b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 57% of ZeusLtd shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand ZeusLtd better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.