Jahwa Electronics. Co., Ltd's (KRX:033240) market cap up ₩62b last week, benefiting both retail investors who own 50% as well as insiders

Key Insights

• Significant control over Jahwa Electronics by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 21 shareholders own 50% of the company
• Insider ownership in Jahwa Electronics is 22%

To get a sense of who is truly in control of Jahwa Electronics. Co., Ltd (KRX:033240), 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 50% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 24% increase in the stock price last week, retail investors profited the most, but insiders who own 22% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Jahwa Electronics, beginning with the chart below.

View our latest analysis for Jahwa Electronics

What Does The Institutional Ownership Tell Us About Jahwa Electronics?

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 Jahwa Electronics. 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 Jahwa Electronics, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Jahwa Electronics. Looking at our data, we can see that the largest shareholder is the CEO Sang-Myun Kim with 18% of shares outstanding. With 9.7% and 6.2% of the shares outstanding respectively, Nanoteck Co., Ltd. and Miraean Korea Co.,Ltd are the second and third largest shareholders.

On studying our ownership data, we found that 21 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. 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 Jahwa Electronics

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 a reasonable proportion of Jahwa Electronics. Co., Ltd. Insiders own ₩70b worth of shares in the ₩313b company. 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, who are usually individual investors, hold a substantial 50% stake in Jahwa Electronics, suggesting it is a fairly popular stock. 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 Company Ownership

We can see that Private Companies own 16%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jahwa Electronics better, we need to consider many other factors. Take risks for example - Jahwa Electronics has 1 warning sign we think you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.