Chunbo Co., Ltd. (KOSDAQ:278280) insiders, who hold 55% of the firm would be disappointed by the recent pullback
Key Insights
- Chunbo's significant insider ownership suggests inherent interests in company's expansion
- 55% of the business is held by the top 2 shareholders
- Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
If you want to know who really controls Chunbo Co., Ltd. (KOSDAQ:278280), then you'll have to look at the makeup of its share registry. 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 as a group endured the highest losses after market cap fell by ₩115b.
In the chart below, we zoom in on the different ownership groups of Chunbo.
See our latest analysis for Chunbo
What Does The Institutional Ownership Tell Us About Chunbo?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Institutions have a very small stake in Chunbo. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
Hedge funds don't have many shares in Chunbo. Sang-Yul Lee is currently the largest shareholder, with 44% of shares outstanding. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 1.6% by the third-largest shareholder. Ja Won Seo, who is the second-largest shareholder, also happens to hold the title of Co-Chief Executive Officer.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 55% stake.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Chunbo
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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 insiders own more than half of Chunbo Co., Ltd.. This gives them effective control of the company. Given it has a market cap of ₩536b, that means they have ₩294b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Chunbo. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Chunbo better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Chunbo you should be aware of.
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.