Individual investors among Exicon Co., Ltd.'s (KOSDAQ:092870) largest stockholders and were hit after last week's 11% price drop

Simply Wall St · 10/18 21:55

Key Insights

  • The considerable ownership by individual investors in Exicon indicates that they collectively have a greater say in management and business strategy
  • A total of 16 investors have a majority stake in the company with 46% ownership
  • 18% of Exicon is held by insiders

Every investor in Exicon Co., Ltd. (KOSDAQ:092870) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to ₩142b last week, individual investors would have faced the highest losses than any other shareholder groups of the company.

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

Check out our latest analysis for Exicon

ownership-breakdown
KOSDAQ:A092870 Ownership Breakdown October 18th 2024

What Does The Institutional Ownership Tell Us About Exicon?

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.

As you can see, institutional investors have a fair amount of stake in Exicon. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Exicon's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
KOSDAQ:A092870 Earnings and Revenue Growth October 18th 2024

Hedge funds don't have many shares in Exicon. With a 15% stake, CEO Myung-Bae Choi is the largest shareholder. For context, the second largest shareholder holds about 14% of the shares outstanding, followed by an ownership of 7.9% by the third-largest shareholder.

On studying our ownership data, we found that 16 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. 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 Exicon

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.

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 most recent data indicates that insiders own a reasonable proportion of Exicon Co., Ltd.. Insiders have a ₩25b stake in this ₩142b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 54% stake in Exicon, 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.

Private Company Ownership

It seems that Private Companies own 22%, of the Exicon 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:

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 Exicon you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.