While institutions own 22% of Hyundai Motor Company (KRX:005380), retail investors are its largest shareholders with 52% ownership

Simply Wall St · 10/14 21:32

Key Insights

  • The considerable ownership by retail investors in Hyundai Motor indicates that they collectively have a greater say in management and business strategy
  • 43% of the business is held by the top 25 shareholders
  • Institutional ownership in Hyundai Motor is 22%

Every investor in Hyundai Motor Company (KRX:005380) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 52% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And institutions on the other hand have a 22% ownership in the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

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

Check out our latest analysis for Hyundai Motor

ownership-breakdown
KOSE:A005380 Ownership Breakdown October 14th 2024

What Does The Institutional Ownership Tell Us About Hyundai Motor?

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.

As you can see, institutional investors have a fair amount of stake in Hyundai Motor. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Hyundai Motor's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
KOSE:A005380 Earnings and Revenue Growth October 14th 2024

Hedge funds don't have many shares in Hyundai Motor. Our data shows that Hyundai Mobis Co.,Ltd is the largest shareholder with 17% of shares outstanding. With 5.7% and 4.3% of the shares outstanding respectively, National Pension Service and Mong-Koo Chung are the second and third largest shareholders. Mong-Koo Chung, who is the third-largest shareholder, also happens to hold the title of Chairman Emeritus.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Hyundai Motor

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can report that insiders do own shares in Hyundai Motor Company. Insiders own ₩3.9t worth of shares (at current prices). It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public -- including retail investors -- own 52% of Hyundai Motor. 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.

Public Company Ownership

It appears to us that public companies own 17% of Hyundai Motor. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Hyundai Motor better, we need to consider many other factors. For example, we've discovered 3 warning signs for Hyundai Motor (1 doesn't sit too well with us!) that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.