MEGAELECTRONICS Co., Ltd.'s (KOSDAQ:226590) 26% gain last week benefited both retail investors who own 48% as well as insiders
Key Insights
- MEGAELECTRONICS' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- The top 6 shareholders own 51% of the company
- 31% of MEGAELECTRONICS is held by insiders
If you want to know who really controls MEGAELECTRONICS Co., Ltd. (KOSDAQ:226590), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 48% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).
While retail investors were the group that reaped the most benefits after last week’s 26% price gain, insiders also received a 31% cut.
In the chart below, we zoom in on the different ownership groups of MEGAELECTRONICS.
Check out our latest analysis for MEGAELECTRONICS
What Does The Institutional Ownership Tell Us About MEGAELECTRONICS?
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.
MEGAELECTRONICS already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 MEGAELECTRONICS' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in MEGAELECTRONICS. Looking at our data, we can see that the largest shareholder is Ho-Kyeong Cho with 30% of shares outstanding. With 5.6% and 4.9% of the shares outstanding respectively, Green Resources Co.,Ltd. and Morgan Stanley are the second and third largest shareholders.
We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of MEGAELECTRONICS
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of MEGAELECTRONICS Co., Ltd.. Insiders own ₩52b worth of shares in the ₩166b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 48% stake in MEGAELECTRONICS. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
Our data indicates that Private Companies hold 10%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand MEGAELECTRONICS better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with MEGAELECTRONICS (including 1 which is a bit unpleasant) .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.