Retail investors among Advanced Process Systems Corporation's (KOSDAQ:265520) largest stockholders and were hit after last week's 11% price drop

Key Insights

• Significant control over Advanced Process Systems by retail investors implies that the general public has more power to influence management and governance-related decisions
• 45% of the business is held by the top 24 shareholders
• Institutions own 19% of Advanced Process Systems

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Every investor in Advanced Process Systems Corporation (KOSDAQ:265520) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 55% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, retail investors endured the biggest losses as the stock fell by 11%.

In the chart below, we zoom in on the different ownership groups of Advanced Process Systems.

Check out our latest analysis for Advanced Process Systems

What Does The Institutional Ownership Tell Us About Advanced Process Systems?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Advanced Process Systems does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Advanced Process Systems' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Advanced Process Systems. Looking at our data, we can see that the largest shareholder is APS Inc. with 25% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.3% and 3.9% of the stock.

On studying our ownership data, we found that 24 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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

Insider Ownership Of Advanced Process Systems

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own less than 1% of Advanced Process Systems Corporation. It appears that the board holds about ₩147m worth of stock. This compares to a market capitalization of ₩234b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 55% of Advanced Process Systems shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Public Company Ownership

Public companies currently own 25% of Advanced Process Systems 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Advanced Process Systems better, we need to consider many other factors. Take risks for example - Advanced Process Systems has 1 warning sign we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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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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.