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With a 32% ownership, insiders of HYBE Co., Ltd. (KRX:352820) a lot at stake

Key insights

  • HYBE’s significant insider ownership indicates inherent interests in expanding the business
  • A total of four investors have a majority stake in the company with an ownership of 53%
  • Institutions own 23% of HYBE

To get an idea of ​​who is really in control of HYBE Co., Ltd. (KRX:352820), it is important to understand the ownership structure of the company. With a 32% stake, individual insiders own the maximum shares in the company. That is, the group will benefit the most if the stock rises (or lose the most if there is a downturn).

So it follows that any decision made by HYBE insiders about the future of the company would be crucial for them.

Let’s take a closer look at what the different types of shareholders can tell us about HYBE.

Check out our latest analysis for HYBE

property division
KOSE:A352820 Ownership distribution June 6, 2024

What does institutional ownership tell us about HYBE?

Many institutions measure their performance using an index that approximates the local market. So they tend to pay more attention to companies included in the major indices.

As you can see, institutional investors have a fair share of HYBE. This may indicate that the company has a degree of credibility in the investment community. However, it’s best to be wary and not rely on the supposed validation that institutional investors bring. They too are wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. So it’s worth checking out HYBE’s earnings history below. Of course, the future is what really matters.

profit and sales growth
KOSE:A352820 Earnings and revenue growth June 6, 2024

We note that hedge funds are not making a meaningful investment in HYBE. The company’s largest shareholder is Si-Hyuk Bang, with 32% ownership. By comparison, the second and third largest shareholders own approximately 9.4% and 6.6% of the shares.

When we looked further, we discovered that 53% of the shares are owned by the four largest shareholders. In other words, these shareholders have a meaningful say in the company’s decisions.

Institutional ownership research is a good way to measure and filter the expected performance of a stock. The same can be achieved by studying analyst sentiments. There are quite a few analysts covering the stock, so you could look at forecast growth quite easily.

Insider owned by HYBE

Although the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management runs the company, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it indicates that leadership is thinking 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.

Our information shows that insiders have a significant stake in HYBE Co., Ltd.. It is very interesting to see that insiders have a significant stake of ₩2.7t in this ₩8.3t company. Most would be happy if the board invested together with them. You may want to access this free chart of recent insider trading.

General public property

With a 30% ownership, the general public, which consists mainly of individual investors, has some influence on HYBE. While this group doesn’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Owned by a private company

Our data shows that private companies hold 5.5% of the company’s shares. It is difficult to draw conclusions based on this fact alone, so it is worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Owned by a public company

Public companies currently own 9.4% of HYBE shares. It’s hard to say for sure, but this suggests they have intertwined business interests. This could be a strategic bet, so it’s worth watching this space for changes in ownership.

Next steps:

I find it very interesting to see who exactly owns a company. But to gain real insight, we must also consider other information. Please note that HYBE is displayed 1 warning sign in our investment analysis you should know about…

Finally the future is the most important. You have access to this free reporting on analysts’ forecasts for the company.

Please note: The figures in this article have been calculated based on data from the past twelve months, which relates to the twelve-month period ending on the last date of the month in which the annual accounts are dated. This may not correspond to the figures in the full annual report.

Valuation is complex, but we help make it simple.

Invent or HYBE may be over or undervalued if you look at our comprehensive analysis, including fair value estimates, risks and cautions, dividends, insider transactions and financial health.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.