UJU Electronics Co. Ltd's (KOSDAQ:065680) market cap up ₩17b last week, benefiting both individual investors who own 58% as well as insiders

Key Insights

• Significant control over UJU Electronics by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 8 shareholders own 42% of the company
• Insider ownership in UJU Electronics is 38%

To get a sense of who is truly in control of UJU Electronics Co. Ltd (KOSDAQ:065680), it is important to understand the ownership structure of the business. With 58% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that reaped the most benefits after last week’s 12% price gain, insiders also received a 38% cut.

In the chart below, we zoom in on the different ownership groups of UJU Electronics.

View our latest analysis for UJU Electronics

What Does The Institutional Ownership Tell Us About UJU Electronics?

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.

Since institutions own only a small portion of UJU Electronics, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in UJU Electronics. With a 38% stake, CEO Young-Baek Ro is the largest shareholder. With 1.9% and 1.4% of the shares outstanding respectively, Korea Investment Value Asset Management Co., Ltd. and Dimensional Fund Advisors LP are the second and third largest shareholders.

On studying our ownership data, we found that 8 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. 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 UJU Electronics

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in UJU Electronics Co. Ltd. It has a market capitalization of just ₩159b, and insiders have ₩60b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 58% of UJU Electronics 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand UJU Electronics better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for UJU Electronics you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.