TSX:ORV

To get a sense of who is truly in control of Blackstone Minerals Limited (ASX:BSX), it is important to understand the ownership structure of the business. We can see that individual investors own the lion’s share in the company with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions, who own 17% shares weren’t spared from last week’s AU$21m market cap drop, individual investors as a group suffered the maximum losses

Let’s take a closer look to see what the different types of shareholders can tell us about Blackstone Minerals.

View our latest analysis for Blackstone Minerals

ownership-breakdown
ASX:BSX Ownership Breakdown May 6th 2022

What Does The Institutional Ownership Tell Us About Blackstone Minerals?

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.

Blackstone Minerals already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Blackstone Minerals’ earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ASX:BSX Earnings and Revenue Growth May 6th 2022

We note that hedge funds don’t have a meaningful investment in Blackstone Minerals. Fidelity International Ltd is currently the company’s largest shareholder with 9.3% of shares outstanding. Ecopro Co., Ltd. is the second largest shareholder owning 8.5% of common stock, and DELPHI Unternehmensberatung Aktiengesellschaft holds about 5.8% of the company stock. Furthermore, CEO Scott Williamson is the owner of 1.7% of the company’s shares.

Our studies suggest that the top 19 shareholders collectively control less than half of the company’s shares, meaning that the company’s shares are widely disseminated and there is no dominant shareholder.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Blackstone Minerals

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 can report that insiders do own shares in Blackstone Minerals Limited. In their own names, insiders own AU$11m worth of stock in the AU$150m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of Blackstone Minerals shares. With this amount 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 vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

We can see that Private Companies own 9.6%, 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.

Public Company Ownership

Public companies currently own 9.1% of Blackstone Minerals stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Blackstone Minerals better, we need to consider many other factors. Take risks for example – Blackstone Minerals has 3 warning signs (and 1 which shouldn’t be ignored) we think you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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. 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.

Source link


The above content is from google feed with the source link mentioned. If you wish to remove the content from here then contact us and it will be removed within 24 hrs.