Retail investors among LVMC Holdings' (KRX:900140) largest stockholders and were hit after last week's 10% price drop

Simply Wall St · 10/16 21:57

Key Insights

  • LVMC Holdings' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • 42% of the business is held by the top 8 shareholders
  • Insiders own 29% of LVMC Holdings

To get a sense of who is truly in control of LVMC Holdings (KRX:900140), it is important to understand the ownership structure of the business. With 58% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 29% came under pressure after market cap dropped to ₩392b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of LVMC Holdings.

View our latest analysis for LVMC Holdings

ownership-breakdown
KOSE:A900140 Ownership Breakdown October 16th 2024

What Does The Institutional Ownership Tell Us About LVMC Holdings?

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 LVMC Holdings. 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. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth
KOSE:A900140 Earnings and Revenue Growth October 16th 2024

Hedge funds don't have many shares in LVMC Holdings. Looking at our data, we can see that the largest shareholder is the CEO Sei Oh with 29% of shares outstanding. With 11% and 1.3% of the shares outstanding respectively, Indochina Bank Limited and Dimensional Fund Advisors LP are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 8 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of LVMC Holdings

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.

Our most recent data indicates that insiders own a reasonable proportion of LVMC Holdings. Insiders have a ₩115b stake in this ₩392b business. 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 58% of LVMC Holdings. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 11%, of the LVMC Holdings stock. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand LVMC Holdings better, we need to consider many other factors. For instance, we've identified 1 warning sign for LVMC Holdings that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.