What Kind Of Shareholders Own San Juan Basin Royalty Trust (NYSE:SJT)?

Simply Wall St

Mon, Nov 23, 2020, 12:06 AM 5 min read

If you want to know who really controls San Juan Basin Royalty Trust ( NYSE:SJT ), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.Companies that have been privatized tend to have low insider ownership.

San Juan Basin Royalty Trust is not a large company by global standards. It has a market capitalization of US$182m, which means it wouldn't have the attention of many institutional investors.Taking a look at our data on the ownership groups (below), it seems thatinstitutions are noticeable on the share registry.Let's delve deeper into each type of owner, to discover more about San Juan Basin Royalty Trust.

See our latest analysis for San Juan Basin Royalty Trust

ownership-breakdown — NYSE:SJT Ownership Breakdown November 25th 2020

What Does The Institutional Ownership Tell Us About San Juan Basin Royalty Trust?

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 San Juan Basin Royalty Trust 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 San Juan Basin Royalty Trust, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — NYSE:SJT Earnings and Revenue Growth November 25th 2020

Hedge funds don't have many shares in San Juan Basin Royalty Trust.First Eagle Investment Management, LLC is currently the company's largest shareholder with 8.8% of shares outstanding. With 5.2% and 1.4% of the shares outstanding respectively, Nevada Capital Corporation Ltd. and Terry McDaniel & Company are the second and third largest shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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.We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of San Juan Basin Royalty Trust

The definition of an insider can differ slightly between different countries, but members of the board of directors always count.Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, mostly retail investors, hold a substantial 80% stake in San Juan Basin Royalty Trust, 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.

Private Company Ownership

We can see that Private Companies own 5.2%, of the shares on issue.Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand San Juan Basin Royalty Trust better, we need to consider many other factors. Take risks for example - San Juan Basin Royalty Trust has 3 warning signs (and 1 which can't be ignored) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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.

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