A look at the shareholders of HD Hyundai Heavy Industries Co.,Ltd. (KRX:329180) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 75% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, public companies collectively scored the highest last week as the company hit ₩36t market cap following a 4.2% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about HD Hyundai Heavy IndustriesLtd.
Check out our latest analysis for HD Hyundai Heavy IndustriesLtd
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.
We can see that HD Hyundai Heavy IndustriesLtd does have institutional investors; and they hold a good portion of the company's stock. 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 HD Hyundai Heavy IndustriesLtd, (below). Of course, keep in mind that there are other factors to consider, too.
HD Hyundai Heavy IndustriesLtd is not owned by hedge funds. Our data shows that HD Korea Shipbuilding & Offshore Engineering Co., Ltd. is the largest shareholder with 75% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 6.6% of the shares outstanding, followed by an ownership of 0.9% by the third-largest shareholder.
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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Our information suggests that HD Hyundai Heavy Industries Co.,Ltd. insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own ₩449m of stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.
With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over HD Hyundai Heavy IndustriesLtd. 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.
Public companies currently own 75% of HD Hyundai Heavy IndustriesLtd stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
It's always worth thinking about the different groups who own shares in a company. But to understand HD Hyundai Heavy IndustriesLtd better, we need to consider many other factors.
I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.
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.
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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.