Is Nice Information & Telecommunication, Inc. (KOSDAQ:036800) Popular Amongst Institutions?

The big shareholder groups in Nice Information & Telecommunication, Inc. (KOSDAQ:036800) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

Nice Information & Telecommunication is not a large company by global standards. It has a market capitalization of ₩273b, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Nice Information & Telecommunication.

Check out our latest analysis for Nice Information & Telecommunication

What Does The Institutional Ownership Tell Us About Nice Information & Telecommunication?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Nice Information & Telecommunication. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Nice Information & Telecommunication's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Nice Information & Telecommunication. NICE Holdings Co., Ltd. is currently the largest shareholder, with 46% of shares outstanding. With 7.7% and 6.6% of the shares outstanding respectively, FMR LLC and VIP Research & Management Co., Ltd. are the second and third largest shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Nice Information & Telecommunication

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. 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 data suggests that insiders own under 1% of Nice Information & Telecommunication, Inc. in their own names. It appears that the board holds about ₩233m worth of stock. This compares to a market capitalization of ₩273b. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

With a 28% ownership, the general public have some degree of sway over Nice Information & Telecommunication. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 46% of Nice Information & Telecommunication 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

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.

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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