Significant control over Star Bulk Carriers by individual investors implies that the general public has more power to influence management and governance-related decisions
32% of the business is held by the top 25 shareholders
A look at the shareholders of Star Bulk Carriers Corp. (NASDAQ:SBLK) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, institutions make up 41% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
In the chart below, we zoom in on the different ownership groups of Star Bulk Carriers.
NasdaqGS:SBLK Ownership Breakdown December 30th 2024
What Does The Institutional Ownership Tell Us About Star Bulk Carriers?
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.
As you can see, institutional investors have a fair amount of stake in Star Bulk Carriers. 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 Star Bulk Carriers, (below). Of course, keep in mind that there are other factors to consider, too.
NasdaqGS:SBLK Earnings and Revenue Growth December 30th 2024
We note that hedge funds don't have a meaningful investment in Star Bulk Carriers. Looking at our data, we can see that the largest shareholder is Brookfield Corporation with 4.8% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.4% and 2.7% of the stock. Petros Pappas, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
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.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Star Bulk Carriers
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.
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.
Shareholders would probably be interested to learn that insiders own shares in Star Bulk Carriers Corp.. This is a big company, so it is good to see this level of alignment. Insiders own US$60m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 54% of Star Bulk Carriers shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Star Bulk Carriers better, we need to consider many other factors. For instance, we've identified 2 warning signs for Star Bulk Carriers that you should be aware of.
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. 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.
