VINA TECH Co.,Ltd. (KOSDAQ:126340) surges 17%; retail investors who own 47% shares profited along with insiders

Key Insights

• The considerable ownership by retail investors in VINA TECHLtd indicates that they collectively have a greater say in management and business strategy
• 52% of the business is held by the top 5 shareholders
• Insider ownership in VINA TECHLtd is 31%

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To get a sense of who is truly in control of VINA TECH Co.,Ltd. (KOSDAQ:126340), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 17% increase in the stock price last week, retail investors profited the most, but insiders who own 31% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of VINA TECHLtd.

Check out our latest analysis for VINA TECHLtd

What Does The Institutional Ownership Tell Us About VINA TECHLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that VINA TECHLtd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 VINA TECHLtd, (below). Of course, keep in mind that there are other factors to consider, too.

VINA TECHLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Do-Kyung Sung with 29% of shares outstanding. Daishin Investment Trust Management Co., Ltd. is the second largest shareholder owning 9.4% of common stock, and National Pension Service holds about 6.6% of the company stock.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of VINA TECHLtd

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. 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 VINA TECH Co.,Ltd.. It has a market capitalization of just ₩330b, and insiders have ₩103b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 47% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for VINA TECHLtd you should know about.

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.