Thursday, April 25

Hankook Tire & Technology Co., Ltd.’s (KRX:161390) large institutional owners must be happy as stock continues to impress, up 5.8% over the past week

Key Insights

To get a sense of who is truly in control of Hankook Tire & Technology Co., Ltd. (KRX:161390), it is important to understand the ownership structure of the business. We can see that institutions own the lion’s share in the company with 32% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And as as result, institutional investors reaped the most rewards after the company’s stock price gained 5.8% last week. The one-year return on investment is currently 58% and last week’s gain would have been more than welcomed.

Let’s take a closer look to see what the different types of shareholders can tell us about Hankook Tire & Technology.

Check out our latest analysis for Hankook Tire & Technology

KOSE:A161390 Ownership Breakdown February 26th 2024

What Does The Institutional Ownership Tell Us About Hankook Tire & Technology?

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.

We can see that Hankook Tire & Technology 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. 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 Hankook Tire & Technology’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
KOSE:A161390 Earnings and Revenue Growth February 26th 2024

We note that hedge funds don’t have a meaningful investment in Hankook Tire & Technology. Hankook & Company Co., Ltd. is currently the largest shareholder, with 31% of shares outstanding. With 7.9% and 7.1% of the shares outstanding respectively, Hyun-Bum Cho and National Pension Service are the second and third largest shareholders.

On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. 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 Hankook Tire & Technology

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.

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 most recent data indicates that insiders own a reasonable proportion of Hankook Tire & Technology Co., Ltd.. It is very interesting to see that insiders have a meaningful ₩913b stake in this ₩7.2t business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Hankook Tire & Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 31% of Hankook Tire & Technology. We can’t be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we’ve spotted 2 warning signs for Hankook Tire & Technology you should know about.

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.

Valuation is complex, but we’re helping make it simple.

Find out whether Hankook Tire & Technology is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.



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