Every investor in Korea Aerospace Industries, Ltd. (KRX:047810) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

With a market capitalization of 2.2t, Korea Aerospace Industries is a decent size, so it is probably on the radar of institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Lets take a closer look to see what the different types of shareholders can tell us about Korea Aerospace Industries.

View our latest analysis for Korea Aerospace Industries

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

As you can see, institutional investors have a fair amount of stake in Korea Aerospace Industries. 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. When multiple institutions own a stock, theres 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 Korea Aerospace Industries historic earnings and revenue below, but keep in mind theres always more to the story.

Hedge funds dont have many shares in Korea Aerospace Industries. Looking at our data, we can see that the largest shareholder is The Export-Import Bank of Korea with 26% of shares outstanding. For context, the second largest shareholder holds about 7.2% of the shares outstanding, followed by an ownership of 2.4% by the third-largest shareholder.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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.

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.

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 information suggests that Korea Aerospace Industries, Ltd. insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we havent picked up on. Its a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own 40m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

The general public, mostly retail investors, hold a substantial 55% stake in Korea Aerospace Industries, suggesting it is a fairly popular stock. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

It seems that Private Companies own 26%, of the Korea Aerospace Industries stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Its always worth thinking about the different groups who own shares in a company. But to understand Korea Aerospace Industries better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs weve spotted with Korea Aerospace Industries .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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. 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. *Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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What Kind Of Shareholders Hold The Majority In Korea Aerospace Industries, Ltd.s (KRX:047810) Shares? - Simply Wall St