Nasdaq
华尔街日报Public companies are SK Biopharmaceuticals Co., Ltd.'s (KRX:326030) biggest owners and were hit after market cap dropped ₩446b
Key Insights
- SK Biopharmaceuticals' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- 64% of the company is held by a single shareholder (SK Inc.)
- 13% of SK Biopharmaceuticals is held by Institutions
To get a sense of who is truly in control of SK Biopharmaceuticals Co., Ltd. (KRX:326030), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 64% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, public companies as a group endured the highest losses last week after market cap fell by ₩446b.
Let's take a closer look to see what the different types of shareholders can tell us about SK Biopharmaceuticals.
View our latest analysis for SK Biopharmaceuticals
What Does The Institutional Ownership Tell Us About SK Biopharmaceuticals?
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 SK Biopharmaceuticals does have institutional investors; and they hold a good portion of the company's stock. 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. 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 SK Biopharmaceuticals, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in SK Biopharmaceuticals. Looking at our data, we can see that the largest shareholder is SK Inc. with 64% of shares outstanding. This implies that they have majority interest control of the future of the company. With 7.0% and 2.0% of the shares outstanding respectively, National Pension Service and BlackRock, Inc. are the second and third largest shareholders.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of SK Biopharmaceuticals
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 data suggests that insiders own under 1% of SK Biopharmaceuticals Co., Ltd. in their own names. Keep in mind that it's a big company, and the insiders own ₩1.9b worth of shares. The absolute value might be more important than the proportional share. 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, who are usually individual investors, hold a 23% stake in SK Biopharmaceuticals. 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 64% of the SK Biopharmaceuticals shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for SK Biopharmaceuticals you should know about.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.