Tokai Carbon Korea Co., Ltd. (KOSDAQ:064760) market capitalization fell by ₩159 billion last week, with listed companies taking the biggest hit

Key insights

• The high ownership of Tokai Carbon Korea’s listed companies suggests that key decisions are influenced by shareholders from the wider public.
• 50% of the company is owned by one shareholder (Tokai Carbon Co., Ltd.)
• 16% of Tokai Carbon Korea is owned by institutions

To get a sense of who really controls Tokai Carbon Korea Co., Ltd. (KOSDAQ:064760), it’s important to understand the company’s ownership structure. And the group that controls the largest slice of the pie is listed companies with 59% ownership. In other words, the group has the greatest upside potential (or downside risk).

When market capitalization fell to ₩1.4 trillion last week, listed companies suffered the biggest losses of all other corporate shareholder groups.

Let’s dive deeper into each type of Tokai Carbon Korea owner, starting with the chart below.

View our latest analysis for Tokai Carbon Korea

What does institutional ownership tell us about Tokai Carbon Korea?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have a number of institutions on the register, especially if they are growing.

We can see that Tokai Carbon Korea has institutional investors; and they own a large portion of the company’s shares. This suggests some credibility among professional investors. But we can’t rely on that fact alone, as institutions make bad investments sometimes, just like everyone else. When multiple institutions own a stock, there is always a risk that they are in a ‘crowded trade’. When such a trade fails, multiple parties can compete to sell shares quickly. This risk is higher in a company without a history of growth. You can see Tokai Carbon Korea’s historic earnings and revenue below, but keep in mind that there is always more to the story.

Tokai Carbon Korea is not owned by hedge funds. The largest shareholder in the company is Tokai Carbon Co., Ltd., with a 50% ownership. With such a large stake in ownership, we infer that they have significant control over the future of the company. Meanwhile, the second and third largest shareholders own 8.2% and 4.1% of the outstanding shares, respectively.

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 understanding of a stock’s expected performance. While there may be some analyst coverage, the company likely isn’t widely covered, so it could receive more attention in the future.

Insider ownership of Tokai Carbon Korea

While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be board members, especially if they are a founder or CEO.

Insider ownership is positive when it indicates that leadership thinks like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We note that our data does not show that directors personally own shares. It is unusual not to have at least some personal shareholdings by directors, so our data may be flawed. A good next step would be to check how much the CEO is paid.

General public property

The general public, which is usually individual investors, holds a 25% stake in Tokai Carbon Korea. This size of ownership, while significant, may not be enough to change the company’s policy if the decision is not in line with that of other major shareholders.

Public Company Ownership

We can see that listed companies hold 59% of Tokai Carbon Korea shares. It’s hard to say for sure, but this suggests they have intertwined business interests. This could be a strategic move, so it’s worth keeping an eye on this space for changes in ownership.

Next steps:

I find it very interesting to look at who exactly owns a company, but to really get insight, we also need to consider other information.

I always like to check if there is a history of sales growthYou can too, by accessing this free chart of historical earnings and profits in this detailed graph.

But eventually it’s the futureIt is not the past that will determine how well the owners of this company will do. That is why we think you should take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article have been calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month in which the financial statement is dated. This may not correspond to the figures in the full annual report.

Do you have feedback on this article? Are you concerned about the content? Contact Us directly with us. You can also email editorial-team (at) simplywallst.com.

This article from Simply Wall St is general in nature. We comment solely on historical data and analyst forecasts, using an objective methodology. Our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any shares and does not take into account your objectives or financial situation. We aim to provide you with a long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in the shares mentioned.

Do you have feedback on this article? Are you concerned about the content? Please contact us directly. You can also send an email to [email protected]