Individual investors who hold 51% of Daejoo Electronic Materials Co., Ltd. (KOSDAQ:078600) gained 6.0%, insiders profited as well

Key Insights

• Significant control over Daejoo Electronic Materials by individual investors implies that the general public has more power to influence management and governance-related decisions
• 48% of the business is held by the top 25 shareholders
• 29% of Daejoo Electronic Materials is held by insiders

A look at the shareholders of Daejoo Electronic Materials Co., Ltd. (KOSDAQ:078600) can tell us which group is most powerful. The group holding the most number of shares in the company, around 51% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 6.0% increase in the stock price last week, individual investors profited the most, but insiders who own 29% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Daejoo Electronic Materials, beginning with the chart below.

View our latest analysis for Daejoo Electronic Materials

What Does The Institutional Ownership Tell Us About Daejoo Electronic Materials?

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.

Daejoo Electronic Materials already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Daejoo Electronic Materials, (below). Of course, keep in mind that there are other factors to consider, too.

Daejoo Electronic Materials is not owned by hedge funds. Moo-Hyun Lim is currently the largest shareholder, with 14% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.6% and 7.1%, of the shares outstanding, respectively. Il-Gyee Lim, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 Daejoo Electronic Materials

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.

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 most recent data indicates that insiders own a reasonable proportion of Daejoo Electronic Materials Co., Ltd.. Insiders own ₩618b worth of shares in the ₩2.1t company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in Daejoo Electronic Materials, suggesting it is a fairly popular stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Daejoo Electronic Materials is showing 3 warning signs in our investment analysis , and 2 of those can't be ignored...

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com