Retail investors are Motrex Co., Ltd's (KOSDAQ:118990) biggest owners and were hit after market cap dropped ₩33b

Simply Wall St · 10/14 23:22

Key Insights

  • The considerable ownership by retail investors in Motrex indicates that they collectively have a greater say in management and business strategy
  • 42% of the business is held by the top 11 shareholders
  • Insider ownership in Motrex is 39%

If you want to know who really controls Motrex Co., Ltd (KOSDAQ:118990), then you'll have to look at the makeup of its share registry. With 58% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders who own 39% came under pressure after market cap dropped to ₩266b last week,retail investors took the most losses.

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

Check out our latest analysis for Motrex

ownership-breakdown
KOSDAQ:A118990 Ownership Breakdown October 14th 2024

What Does The Institutional Ownership Tell Us About Motrex?

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.

Since institutions own only a small portion of Motrex, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

earnings-and-revenue-growth
KOSDAQ:A118990 Earnings and Revenue Growth October 14th 2024

We note that hedge funds don't have a meaningful investment in Motrex. Looking at our data, we can see that the largest shareholder is the CEO Hyung-Hwan Lee with 39% of shares outstanding. With 1.9% and 1.0% of the shares outstanding respectively, Samsung Asset Management Company, Ltd. and Dimensional Fund Advisors LP are the second and third largest shareholders.

On studying our ownership data, we found that 11 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. 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 Motrex

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.

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 information suggests that insiders maintain a significant holding in Motrex Co., Ltd. Insiders have a ₩103b stake in this ₩266b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 58% stake in Motrex, 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.

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. Case in point: We've spotted 3 warning signs for Motrex you should be aware of, and 2 of them don't sit too well with us.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.