Stock Analysis

How Much Of Oceanbridge Co., Ltd (KOSDAQ:241790) Do Insiders Own?

KOSDAQ:A241790
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The big shareholder groups in Oceanbridge Co., Ltd (KOSDAQ:241790) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Oceanbridge is a smaller company with a market capitalization of ₩177b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Oceanbridge.

Check out our latest analysis for Oceanbridge

ownership-breakdown
KOSDAQ:A241790 Ownership Breakdown December 15th 2020

What Does The Institutional Ownership Tell Us About Oceanbridge?

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

earnings-and-revenue-growth
KOSDAQ:A241790 Earnings and Revenue Growth December 15th 2020

We note that hedge funds don't have a meaningful investment in Oceanbridge. Panasia Semiconductor Materials Llc. is currently the largest shareholder, with 34% of shares outstanding. Kyeong-Ju Lee is the second largest shareholder owning 12% of common stock, and Korea Securities Finance Corporation, Investment Arm holds about 3.9% of the company stock.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. 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 Oceanbridge

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.

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 information suggests that insiders maintain a significant holding in Oceanbridge Co., Ltd. Insiders have a ₩24b stake in this ₩177b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, with a 43% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 34%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Oceanbridge better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Oceanbridge you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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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