Korea Zinc Company, Ltd.'s (KRX:010130) top owners are public companies with 32% stake, while 23% is held by private companies
Key Insights
- Significant control over Korea Zinc Company by public companies implies that the general public has more power to influence management and governance-related decisions
- The top 4 shareholders own 53% of the company
- Insider ownership in Korea Zinc Company is 19%
Every investor in Korea Zinc Company, Ltd. (KRX:010130) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 32% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, private companies make up 23% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of Korea Zinc Company.
View our latest analysis for Korea Zinc Company
What Does The Institutional Ownership Tell Us About Korea Zinc Company?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Korea Zinc Company does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Korea Zinc Company's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Korea Zinc Company. Our data shows that Young Poong Corporation is the largest shareholder with 29% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.3% and 8.6% of the stock. Yun Birm Choi, who is the third-largest shareholder, also happens to hold the title of Co-Chairman of the Board.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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.
Insider Ownership Of Korea Zinc Company
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
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 Korea Zinc Company, Ltd.. It has a market capitalization of just ₩15t, and insiders have ₩2.8t worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
We can see that Private Companies own 23%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Public Company Ownership
We can see that public companies hold 32% of the Korea Zinc Company 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 Korea Zinc Company better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Korea Zinc Company (of which 1 makes us a bit uncomfortable!) you should know about.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.