Stock Analysis

What Kind Of Shareholders Hold The Majority In Intelligent Digital Integrated Security Co., Ltd.'s (KOSDAQ:143160) Shares?

KOSDAQ:A143160
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If you want to know who really controls Intelligent Digital Integrated Security Co., Ltd. (KOSDAQ:143160), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

Intelligent Digital Integrated Security is not a large company by global standards. It has a market capitalization of ₩296b, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Intelligent Digital Integrated Security.

View our latest analysis for Intelligent Digital Integrated Security

ownership-breakdown
KOSDAQ:A143160 Ownership Breakdown November 26th 2020

What Does The Institutional Ownership Tell Us About Intelligent Digital Integrated Security?

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.

Intelligent Digital Integrated Security already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Intelligent Digital Integrated Security's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
KOSDAQ:A143160 Earnings and Revenue Growth November 26th 2020

Intelligent Digital Integrated Security is not owned by hedge funds. Our data shows that IDIS Holdings Co., Ltd. is the largest shareholder with 46% of shares outstanding. Korea Securities Finance Corporation, Investment Arm is the second largest shareholder owning 4.1% of common stock, and Young-Dal Kim holds about 2.0% of the company stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Intelligent Digital Integrated Security

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own some shares in Intelligent Digital Integrated Security Co., Ltd.. In their own names, insiders own ₩6.1b worth of stock in the ₩296b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 47% stake in Intelligent Digital Integrated Security. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 46% of Intelligent Digital Integrated Security stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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 for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Intelligent Digital Integrated Security (at least 2 which are a bit concerning) , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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. 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.
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