CHEMTRONICS.Co.,Ltd.'s (KOSDAQ:089010) last week's 12% decline must have disappointed individual investors who have a significant stake

Key Insights

• The considerable ownership by individual investors in CHEMTRONICS.Co.Ltd indicates that they collectively have a greater say in management and business strategy
• 44% of the business is held by the top 14 shareholders
• 29% of CHEMTRONICS.Co.Ltd is held by insiders

Every investor in CHEMTRONICS.Co.,Ltd. (KOSDAQ:089010) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders who own 29% came under pressure after market cap dropped to ₩303b last week,individual investors took the most losses.

In the chart below, we zoom in on the different ownership groups of CHEMTRONICS.Co.Ltd.

See our latest analysis for CHEMTRONICS.Co.Ltd

What Does The Institutional Ownership Tell Us About CHEMTRONICS.Co.Ltd?

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.

As you can see, institutional investors have a fair amount of stake in CHEMTRONICS.Co.Ltd. 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 CHEMTRONICS.Co.Ltd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in CHEMTRONICS.Co.Ltd. Looking at our data, we can see that the largest shareholder is the CEO Bo-Kyun Kim with 19% of shares outstanding. With 9.6% and 4.5% of the shares outstanding respectively, Axis Investment Co., Ltd. and Eung-Su Kim are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 14 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of CHEMTRONICS.Co.Ltd

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.

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 a reasonable proportion of CHEMTRONICS.Co.,Ltd.. Insiders own ₩86b worth of shares in the ₩303b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of CHEMTRONICS.Co.Ltd shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Equity Ownership

With a stake of 9.6%, private equity firms could influence the CHEMTRONICS.Co.Ltd board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CHEMTRONICS.Co.Ltd better, we need to consider many other factors. Take risks for example - CHEMTRONICS.Co.Ltd has 2 warning signs we think you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.