Pyung Hwa Holdings Co., Ltd. (KRX:010770) adds ₩29b in market cap and insiders have a 53% stake in that gain

Key Insights

• Pyung Hwa Holdings’ significant insider ownership suggests inherent interests in company’s expansion
• The top 2 shareholders own 53% of the company
• Using data from company’s past performance alongside ownership research, one can better assess the future performance of a company

We’ve discovered 5 warning signs about Pyung Hwa Holdings. View them for free.

To get a sense of who is truly in control of Pyung Hwa Holdings Co., Ltd. (KRX:010770), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion’s share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit ₩149b market cap following a 25% gain in the stock.

Let’s take a closer look to see what the different types of shareholders can tell us about Pyung Hwa Holdings.

Check out our latest analysis for Pyung Hwa Holdings

What Does The Lack Of Institutional Ownership Tell Us About Pyung Hwa Holdings?

We don’t tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it’s not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don’t attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don’t own the stock because they aren’t convinced it will perform well. Pyung Hwa Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Pyung Hwa Holdings is not owned by hedge funds. Jong-Seok Kim is currently the company’s largest shareholder with 27% of shares outstanding. For context, the second largest shareholder holds about 26% of the shares outstanding, followed by an ownership of 15% by the third-largest shareholder.

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. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Pyung Hwa Holdings

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. 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.

It seems that insiders own more than half the Pyung Hwa Holdings Co., Ltd. stock. This gives them a lot of power. That means they own ₩79b worth of shares in the ₩149b company. That’s quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in Pyung Hwa Holdings. 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.

Public Company Ownership

It appears to us that public companies own 15% of Pyung Hwa Holdings. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we’ve discovered 5 warning signs for Pyung Hwa Holdings (2 don’t sit too well with us!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.