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Insiders were the key beneficiaries as CJ Corporation's (KRX:001040) market cap rises to ₩5.2t

Simply Wall St · 07/10 23:24

Key Insights

  • Insiders appear to have a vested interest in CJ's growth, as seen by their sizeable ownership
  • 55% of the company is held by a single shareholder (Jay-Hyun Lee)
  • 20% of CJ is held by Institutions

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Every investor in CJ Corporation (KRX:001040) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit ₩5.2t market cap following a 6.2% gain in the stock.

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

View our latest analysis for CJ

ownership-breakdown
KOSE:A001040 Ownership Breakdown July 10th 2025

What Does The Institutional Ownership Tell Us About CJ?

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.

CJ already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 CJ, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
KOSE:A001040 Earnings and Revenue Growth July 10th 2025

CJ is not owned by hedge funds. Jay-Hyun Lee is currently the largest shareholder, with 55% 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 12% of the shares outstanding, followed by an ownership of 1.5% by the third-largest shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of CJ

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 the majority of CJ Corporation. This means they can collectively make decisions for the company. That means insiders have a very meaningful ₩2.9t stake in this ₩5.2t business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in CJ. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 4 warning signs for CJ that you should be aware of before investing here.

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.