After the recent decline, HANMI Semiconductor Co., Ltd. (KRX:042700) CEO Dong-Shin Kwak's holdings have lost 5.1% of their value

Key Insights

• Insiders appear to have a vested interest in HANMI Semiconductor's growth, as seen by their sizeable ownership
• The largest shareholder of the company is Dong-Shin Kwak with a 55% stake
• Institutions own 15% of HANMI Semiconductor

To get a sense of who is truly in control of HANMI Semiconductor Co., Ltd. (KRX:042700), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 55% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 5.1% decline in share price, insiders suffered the most losses.

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

See our latest analysis for HANMI Semiconductor

What Does The Institutional Ownership Tell Us About HANMI Semiconductor?

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.

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

HANMI Semiconductor is not owned by hedge funds. With a 55% stake, CEO Dong-Shin Kwak is the largest shareholder. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. With 5.4% and 1.8% of the shares outstanding respectively, National Pension Service and Mirae Asset Global Investments Co., Ltd. are the second and third largest shareholders.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of HANMI Semiconductor

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.

It seems that insiders own more than half the HANMI Semiconductor Co., Ltd. stock. This gives them a lot of power. Insiders own ₩4.9t worth of shares in the ₩8.9t company. That's extraordinary! Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in HANMI Semiconductor. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for HANMI Semiconductor (1 can't be ignored!) that you should be aware of before investing here.

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.