CHEMTRONICS.Co.,Ltd.'s (KOSDAQ:089010) market cap rose ₩28b last week; retail investors who hold 56% profited and so did insiders

Key Insights

• Significant control over CHEMTRONICS.Co.Ltd by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 14 shareholders own 44% of the company
• Insiders own 29% of CHEMTRONICS.Co.Ltd

Every investor in CHEMTRONICS.Co.,Ltd. (KOSDAQ:089010) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 56% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Retail investors gained the most after market cap touched ₩263b last week, while insiders who own 29% also benefitted.

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?

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 CHEMTRONICS.Co.Ltd. 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. 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 CHEMTRONICS.Co.Ltd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in CHEMTRONICS.Co.Ltd. With a 19% stake, CEO Bo-Kyun Kim is the largest shareholder. In comparison, the second and third largest shareholders hold about 9.6% and 4.5% of the stock. Interestingly, the third-largest shareholder, Eung-Su Kim is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top 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 an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems insiders own a significant proportion of CHEMTRONICS.Co.,Ltd.. It has a market capitalization of just ₩263b, and insiders have ₩75b 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 -- including retail investors -- own 56% of CHEMTRONICS.Co.Ltd. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Equity Ownership

With an ownership of 9.6%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for CHEMTRONICS.Co.Ltd you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.