Retail investors among CG Invites Co., Ltd.'s (KOSDAQ:083790) largest stockholders and were hit after last week's 14% price drop

Simply Wall St · 10/16 21:54

Key Insights

  • Significant control over CG Invites by retail investors implies that the general public has more power to influence management and governance-related decisions
  • The top 5 shareholders own 51% of the company
  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls CG Invites Co., Ltd. (KOSDAQ:083790), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 45% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, retail investors endured the biggest losses as the stock fell by 14%.

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

See our latest analysis for CG Invites

ownership-breakdown
KOSDAQ:A083790 Ownership Breakdown October 16th 2024

What Does The Institutional Ownership Tell Us About CG Invites?

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.

Institutions have a very small stake in CG Invites. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

earnings-and-revenue-growth
KOSDAQ:A083790 Earnings and Revenue Growth October 16th 2024

CG Invites is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is New Lake Invites Investment Co., Ltd. with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.3% and 5.7% of the stock. Furthermore, CEO Joong-Myung Cho is the owner of 4.4% of the company's shares.

On looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of CG Invites

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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can report that insiders do own shares in CG Invites Co., Ltd.. In their own names, insiders own ₩9.3b worth of stock in the ₩164b company. This shows at least some alignment, but we usually like to see larger insider holdings. 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 45% stake in CG Invites. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

With a stake of 5.7%, private equity firms could influence the CG Invites board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

Our data indicates that Private Companies hold 31%, of the company's shares. 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.

Public Company Ownership

We can see that public companies hold 9.3% of the CG Invites shares on issue. 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 CG Invites better, we need to consider many other factors. For instance, we've identified 4 warning signs for CG Invites (2 are a bit unpleasant) that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.