FURONTEER Inc.'s (KOSDAQ:370090) biggest owners are individual investors who got richer after stock soared 13% last week
Key Insights
- Significant control over FURONTEER by individual investors implies that the general public has more power to influence management and governance-related decisions
- The top 13 shareholders own 47% of the company
- Insiders own 12% of FURONTEER
If you want to know who really controls FURONTEER Inc. (KOSDAQ:370090), then you'll have to look at the makeup of its share registry. With 53% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Clearly, individual investors benefitted the most after the company's market cap rose by ₩17b last week.
Let's take a closer look to see what the different types of shareholders can tell us about FURONTEER.
Check out our latest analysis for FURONTEER
What Does The Institutional Ownership Tell Us About FURONTEER?
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.
We can see that FURONTEER does have institutional investors; and they hold a good portion of the company's stock. 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 FURONTEER, (below). Of course, keep in mind that there are other factors to consider, too.
FURONTEER is not owned by hedge funds. HyVision System. Inc is currently the company's largest shareholder with 30% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.1% and 5.2% of the stock.
Our studies suggest that the top 13 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant 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. 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 FURONTEER
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.
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.
Our information suggests that insiders maintain a significant holding in FURONTEER Inc.. It has a market capitalization of just ₩153b, and insiders have ₩18b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a substantial 53% stake in FURONTEER, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Public Company Ownership
We can see that public companies hold 30% of the FURONTEER shares on issue. 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. For instance, we've identified 2 warning signs for FURONTEER (1 makes us a bit uncomfortable) that you should be aware of.
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.