HD Hyundai Heavy Industries Co.,Ltd.'s (KRX:329180) top owners are public companies with 74% stake, while 14% is held by individual investors
Key Insights
- HD Hyundai Heavy IndustriesLtd's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- 74% of the company is held by a single shareholder (HD Korea Shipbuilding & Offshore Engineering Co., Ltd.)
- 12% of HD Hyundai Heavy IndustriesLtd is held by Institutions
To get a sense of who is truly in control of HD Hyundai Heavy Industries Co.,Ltd. (KRX:329180), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 74% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, individual investors make up 14% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of HD Hyundai Heavy IndustriesLtd.
View our latest analysis for HD Hyundai Heavy IndustriesLtd
What Does The Institutional Ownership Tell Us About 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.
HD Hyundai Heavy IndustriesLtd 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 HD Hyundai Heavy IndustriesLtd, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in HD Hyundai Heavy IndustriesLtd. The company's largest shareholder is HD Korea Shipbuilding & Offshore Engineering Co., Ltd., with ownership of 74%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 7.4% of the shares outstanding, followed by an ownership of 1.0% by the third-largest shareholder.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of HD Hyundai Heavy IndustriesLtd
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.
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 information suggests that HD Hyundai Heavy Industries Co.,Ltd. insiders own under 1% of the company. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own ₩568m worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 14% stake in HD Hyundai Heavy IndustriesLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
Public companies currently own 74% 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.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
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.
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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.