In This Article:
Key Insights
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The considerable ownership by public companies in Gravity indicates that they collectively have a greater say in management and business strategy
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GungHo Online Entertainment, Inc. owns 59% of the company
To get a sense of who is truly in control of Gravity Co., Ltd. (NASDAQ:GRVY), it is important to understand the ownership structure of the business. With 59% stake, public companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual investors make up 27% of the company’s shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Gravity.
Check out our latest analysis for Gravity
What Does The Institutional Ownership Tell Us About Gravity?
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.
As you can see, institutional investors have a fair amount of stake in Gravity. 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 Gravity's historic earnings and revenue below, but keep in mind there's always more to the story.
Gravity is not owned by hedge funds. The company's largest shareholder is GungHo Online Entertainment, Inc., with ownership of 59%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 3.2% and 3.2% of the shares outstanding respectively, Acadian Asset Management LLC and Morgan Stanley, Investment Banking and Brokerage Investments are the second and third largest shareholders.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Gravity
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.