Kumyang Green Power Co., Ltd. (KOSDAQ:282720) market capitalization increased by ₩15 billion, insiders receive 59% stake

Key findings

• Insiders appear to have a vested interest in Kumyang Green Power’s growth, as evidenced by their significant holdings.
• A total of 3 investors own the majority of the company with 54%
• Owner analysis combined with past performance data can help provide a good understanding of a stock’s opportunities.

A look at the shareholders of Kumyang Green Power Co., Ltd. (KOSDAQ:282720) tells us which group is the most powerful. With 59% of the shares, individual insiders own the most shares in the company. In other words, the group has the greatest upside potential (or downside risk).

Apparently, insiders benefited the most after the company’s market capitalization increased by Rs 15 billion last week.

Let’s take a closer look at what the different types of shareholders can tell us about Kumyang Green Power.

Check out our latest analysis for Kumyang Green Power

What does institutional ownership tell us about Kumyang Green Power?

Many institutions measure their performance against an index that is similar to the local market, so they tend to pay more attention to companies listed in major indices.

As you can see, institutional investors hold a sizeable stake in Kumyang Green Power. This suggests some credibility among professional investors. But we cannot rely on this fact alone, as institutions sometimes make bad investments, just like everyone else does. It is not uncommon to see a big share price drop when two large institutional investors try to sell a stock at the same time, so it is worth checking Kumyang Green Power’s past earnings history (see below). Of course, remember that there are other factors to consider as well.

Kumyang Green Power is not owned by hedge funds. Our data shows that Yooncheol Lee is the largest shareholder with 39% of outstanding shares. Eugene Asset Management Co., Ltd. and Kibo Lee are the second and third largest shareholders with 8.5% and 6.6% of outstanding shares respectively.

A closer examination of the shareholder register revealed that three of the largest shareholders own a significant share in the company with their 54% stake.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst opinions. As far as we know, there is no analyst coverage of the company, so it is likely flying under the radar.

Insider ownership of Kumyang Green Power

While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management runs the business, but the CEO is responsible to the board, even if he or she is a member of the board.

Most people consider insider ownership to be a positive because it can indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated in this group.

According to our information, insiders own more than half of Kumyang Green Power Co., Ltd. This gives them effective control over the company. This means they own ₩85b worth of shares in the ₩145b company. That’s pretty significant. It’s good to see this level of investment. You can check here to see if these insiders have been buying recently.

Public property

The general public – including retail investors – owns 28% of the company’s shares and therefore cannot be easily ignored. While this level of ownership is significant, it may not be enough to change company policy if the decision is not in line with the decisions of other major shareholders.

Private company ownership

Our data shows that private companies hold 4.7% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a publicly traded company through an ownership interest in a private company, rather than in their own capacity as an individual. While it is difficult to draw any general conclusions, this is an area for further investigation.

Next Steps:

While it is worth considering the different groups that own a company, there are other factors that are even more important. A typical example: We found 3 warning signs for Kumyang Green Power You should be aware of these, and one of them is worrying.

Naturally, If you look elsewhere, you may find a fantastic investment. So take a look at the free List of interesting companies.

NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.