Public companies are M.I.TECH Co.,Ltd's (KOSDAQ:179290) biggest owners and were rewarded after market cap rose by ₩31b last week
Key Insights
- The considerable ownership by public companies in M.I.TECHLtd indicates that they collectively have a greater say in management and business strategy
- The largest shareholder of the company is Synergy Innovation Co., Ltd. with a 52% stake
- Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
A look at the shareholders of M.I.TECH Co.,Ltd (KOSDAQ:179290) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 62% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, public companies collectively scored the highest last week as the company hit ₩244b market cap following a 14% gain in the stock.
Let's delve deeper into each type of owner of M.I.TECHLtd, beginning with the chart below.
View our latest analysis for M.I.TECHLtd
What Does The Institutional Ownership Tell Us About M.I.TECHLtd?
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.
Since institutions own only a small portion of M.I.TECHLtd, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Hedge funds don't have many shares in M.I.TECHLtd. Looking at our data, we can see that the largest shareholder is Synergy Innovation Co., Ltd. with 52% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 9.8% of the shares outstanding, followed by an ownership of 4.5% by the third-largest 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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of M.I.TECHLtd
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.
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.
We can report that insiders do own shares in M.I.TECH Co.,Ltd. In their own names, insiders own ₩13b worth of stock in the ₩244b company. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over M.I.TECHLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
Public companies currently own 62% of M.I.TECHLtd stock. 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 M.I.TECHLtd (1 is significant) that you should be aware of.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.