BHI Co., Ltd.'s (KOSDAQ:083650) market cap up ₩26b last week, benefiting both individual investors who own 52% as well as insiders

Key Insights

• Significant control over BHI by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 15 shareholders own 48% of the company
• Insiders own 41% of BHI

A look at the shareholders of BHI Co., Ltd. (KOSDAQ:083650) can tell us which group is most powerful. The group holding the most number of shares in the company, around 52% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

While individual investors were the group that benefitted the most from last week’s ₩26b market cap gain, insiders too had a 41% share in those profits.

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

Check out our latest analysis for BHI

What Does The Institutional Ownership Tell Us About BHI?

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.

BHI 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at BHI's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in BHI. Eun-Mi Park is currently the largest shareholder, with 17% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 17% and 4.7%, of the shares outstanding, respectively. Jong-Inn Woo, who is the second-largest shareholder, also happens to hold the title of Co-Chief Executive Officer.

On studying our ownership data, we found that 15 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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of BHI

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems insiders own a significant proportion of BHI Co., Ltd.. Insiders own ₩111b worth of shares in the ₩273b 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, mostly comprising of individual investors, collectively holds 52% of BHI shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for BHI 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.