HD Hyundai Energy Solutions Co.,Ltd.'s (KRX:322000) biggest owners are public companies who got richer after stock soared 12% last week

Key Insights

• Significant control over HD Hyundai Energy SolutionsLtd by public companies implies that the general public has more power to influence management and governance-related decisions
• 54% of the company is held by a single shareholder (HD Korea Shipbuilding & Offshore Engineering Co., Ltd.)
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

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If you want to know who really controls HD Hyundai Energy Solutions Co.,Ltd. (KRX:322000), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit ₩569b market cap following a 12% gain in the stock.

In the chart below, we zoom in on the different ownership groups of HD Hyundai Energy SolutionsLtd.

View our latest analysis for HD Hyundai Energy SolutionsLtd

What Does The Institutional Ownership Tell Us About HD Hyundai Energy SolutionsLtd?

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.

We can see that HD Hyundai Energy SolutionsLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 HD Hyundai Energy SolutionsLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in HD Hyundai Energy SolutionsLtd. HD Korea Shipbuilding & Offshore Engineering Co., Ltd. is currently the largest shareholder, with 54% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. National Pension Service is the second largest shareholder owning 3.9% of common stock, and Dimensional Fund Advisors LP holds about 0.7% of the company stock.

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

Insider Ownership Of HD Hyundai Energy SolutionsLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public, who are usually individual investors, hold a 41% stake in HD Hyundai Energy SolutionsLtd. 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.

Public Company Ownership

Public companies currently own 54% of HD Hyundai Energy SolutionsLtd stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand HD Hyundai Energy SolutionsLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for HD Hyundai Energy SolutionsLtd that you should be aware of before investing here.

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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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.