Every investor in HDC HOLDINGS CO.,Ltd (KRX:012630) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 42% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As market cap fell to ₩852b last week, insiders would have faced the highest losses than any other shareholder groups of the company.
Let's take a closer look to see what the different types of shareholders can tell us about HDC HOLDINGSLtd.
Check out our latest analysis for HDC HOLDINGSLtd
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.
HDC HOLDINGSLtd 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. 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 HDC HOLDINGSLtd's earnings history below. Of course, the future is what really matters.
HDC HOLDINGSLtd is not owned by hedge funds. The company's CEO Mong-Gyu Chung is the largest shareholder with 42% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.7% and 8.0%, of the shares outstanding, respectively.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
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.
It seems insiders own a significant proportion of HDC HOLDINGS CO.,Ltd. It has a market capitalization of just ₩852b, and insiders have ₩357b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
The general public-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. 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.
It's always worth thinking about the different groups who own shares in a company. But to understand HDC HOLDINGSLtd better, we need to consider many other factors. For instance, we've identified 2 warning signs for HDC HOLDINGSLtd (1 is potentially serious) that 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.