What Kind Of Shareholders Hold The Majority In SHINSEGAE Information & Communication Co., LTD's (KRX:035510) Shares?

A look at the shareholders of SHINSEGAE Information & Communication Co., LTD (KRX:035510) can tell us which group is most powerful. 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.

SHINSEGAE Information & Communication is not a large company by global standards. It has a market capitalization of ₩208b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows 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 SHINSEGAE Information & Communication.

Check out our latest analysis for SHINSEGAE Information & Communication

What Does The Institutional Ownership Tell Us About SHINSEGAE Information & Communication?

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 SHINSEGAE Information & Communication 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 SHINSEGAE Information & Communication's earnings history below. Of course, the future is what really matters.

SHINSEGAE Information & Communication is not owned by hedge funds. Shinsegae Inc. is currently the company's largest shareholder with 37% of shares outstanding. National Pension Service is the second largest shareholder owning 7.5% of common stock, and Korea Investment Management Co., Ltd holds about 2.0% of the company stock.

A deeper look at our ownership data shows that the top 17 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of SHINSEGAE Information & Communication

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own less than 1% of SHINSEGAE Information & Communication Co., LTD. It appears that the board holds about ₩473m worth of stock. This compares to a market capitalization of ₩208b. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- mostly retail investors -- own 52% of SHINSEGAE Information & Communication. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Public Company Ownership

We can see that public companies hold 37% of the SHINSEGAE Information & Communication shares on issue. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - SHINSEGAE Information & Communication has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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