DAVOLINK Inc.'s (KOSDAQ:340360) largest shareholders are retail investors who were rewarded as market cap surged ₩21b last week

Key Insights

• The considerable ownership by retail investors in DAVOLINK indicates that they collectively have a greater say in management and business strategy
• The top 12 shareholders own 45% of the company
• 11% of DAVOLINK is held by insiders

To get a sense of who is truly in control of DAVOLINK Inc. (KOSDAQ:340360), 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 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by ₩21b last week.

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

View our latest analysis for DAVOLINK

What Does The Lack Of Institutional Ownership Tell Us About DAVOLINK?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. DAVOLINK's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

DAVOLINK is not owned by hedge funds. TERA SCIENCE.Co.,LTD is currently the largest shareholder, with 34% of shares outstanding. Yong Hwa Lee is the second largest shareholder owning 5.0% of common stock, and Ui-cheol Moon holds about 1.5% of the company stock.

On studying our ownership data, we found that 12 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of DAVOLINK

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.

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 information suggests that insiders maintain a significant holding in DAVOLINK Inc.. It has a market capitalization of just ₩141b, and insiders have ₩15b 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, who are usually individual investors, hold a substantial 55% stake in DAVOLINK, 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.

Public Company Ownership

It appears to us that public companies own 34% of DAVOLINK. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for DAVOLINK you should know about.

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. 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.