Recent 12% pullback would hurt WON TECH Co.,Ltd. (KOSDAQ:336570) insiders

Simply Wall St · 10/14 23:25

Key Insights

Every investor in WON TECH Co.,Ltd. (KOSDAQ:336570) should be aware of the most powerful shareholder groups. With 44% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by ₩73b.

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

View our latest analysis for WON TECHLtd

ownership-breakdown
KOSDAQ:A336570 Ownership Breakdown October 14th 2024

What Does The Institutional Ownership Tell Us About WON TECHLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

WON TECHLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 WON TECHLtd, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
KOSDAQ:A336570 Earnings and Revenue Growth October 14th 2024

Hedge funds don't have many shares in WON TECHLtd. The company's largest shareholder is Jong-Won Kim, with ownership of 32%. In comparison, the second and third largest shareholders hold about 4.9% and 4.3% of the stock.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of WON TECHLtd

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.

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 WON TECH Co.,Ltd.. Insiders own ₩245b worth of shares in the ₩553b company. 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-- including retail investors -- own 37% 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.

Private Company Ownership

It seems that Private Companies own 8.2%, of the WON TECHLtd stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand WON TECHLtd better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for WON TECHLtd you should be aware of.

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.