Samwha Electric Co.,Ltd.'s (KRX:009470) market cap rose ₩39b last week; individual investors who hold 35% profited and so did insiders

Key Insights

• The considerable ownership by individual investors in Samwha ElectricLtd indicates that they collectively have a greater say in management and business strategy
• 56% of the business is held by the top 3 shareholders
• Insider ownership in Samwha ElectricLtd is 23%

To get a sense of who is truly in control of Samwha Electric Co.,Ltd. (KRX:009470), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 35% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched ₩247b last week, while insiders who own 23% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Samwha ElectricLtd.

Check out our latest analysis for Samwha ElectricLtd

What Does The Institutional Ownership Tell Us About Samwha ElectricLtd?

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.

We can see that Samwha ElectricLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Samwha ElectricLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Samwha ElectricLtd. Young-Joo Oh is currently the largest shareholder, with 23% of shares outstanding. With 23% and 10.0% of the shares outstanding respectively, Nichicon Corporation and National Pension Service are the second and third largest shareholders.

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.

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. 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 Samwha ElectricLtd

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.

Our most recent data indicates that insiders own a reasonable proportion of Samwha Electric Co.,Ltd.. Insiders have a ₩57b stake in this ₩247b business. 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-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

We can see that public companies hold 23% of the Samwha ElectricLtd shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Samwha ElectricLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Samwha ElectricLtd that you should be aware of before investing here.

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.