Nasdaq
华尔街日报Hanwha Aerospace Co., Ltd.'s (KRX:012450) largest shareholders are public companies who were rewarded as market cap surged ₩6.4t last week
Key Insights
- Significant control over Hanwha Aerospace by public companies implies that the general public has more power to influence management and governance-related decisions
- A total of 5 investors have a majority stake in the company with 51% ownership
- Institutions own 29% of Hanwha Aerospace
Every investor in Hanwha Aerospace Co., Ltd. (KRX:012450) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 36% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Clearly, public companies benefitted the most after the company's market cap rose by ₩6.4t last week.
Let's delve deeper into each type of owner of Hanwha Aerospace, beginning with the chart below.
Check out our latest analysis for Hanwha Aerospace
What Does The Institutional Ownership Tell Us About Hanwha Aerospace?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Hanwha Aerospace does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Hanwha Aerospace's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Hanwha Aerospace. Our data shows that Hanwha Corporation is the largest shareholder with 36% of shares outstanding. With 7.9% and 2.7% of the shares outstanding respectively, National Pension Service and The Vanguard Group, Inc. are the second and third largest shareholders.
On looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Hanwha Aerospace
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
Our information suggests that Hanwha Aerospace Co., Ltd. insiders own under 1% of the company. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own ₩29b worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. 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
We can see that public companies hold 36% of the Hanwha Aerospace 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.
I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.