What you need to know about the St. James’s Place plc (LON: STJ) investor makeup

The major shareholder groups of St. James’s Place plc (LON: STJ) hold power over the company. Large companies usually have institutions as shareholders, and we usually see insiders who own stakes in smaller companies. Companies that have been privatized tend to have low insider ownership.

St. James’s Place is a pretty big company. It has a market capitalization of £ 7.9 billion. Typically, institutions would own a significant stake in a company of this size. A look at our data on owner groups (below) shows that institutional investors have bought into the company. We can zoom in on the various owner groups to learn more about St. James’s Place.

Check out our latest analysis for St. James’s Place

LSE: STJ Property Breakdown June 30, 2021

What does institutional ownership tell us about St. James’s Place?

Many institutions measure their performance against an index that approximates the local market. As a result, they tend to pay more attention to companies that are in major indices.

We can see that St. James’s Place has institutional investors; and they hold a good chunk of the company’s stock. This implies that the analysts who work for these institutions have looked at the stock and like it. But like everyone else, they can be wrong too. If several institutions change their minds about a stock at the same time, the stock price could fall quickly. So it’s worth checking out St. James’s Place’s earnings history below. Of course, the future is what really matters.

Revenue-and-revenue growth
LSE: STJ earnings and sales growth June 30, 2021

With institutional investors owning more than half of the shares in issue, the board of directors will likely need to be mindful of their preferences. Hedge funds don’t have a lot of stocks on St. James’s Place. Our data shows that BlackRock, Inc. is the largest shareholder with 6.2% of the shares outstanding. The second and third largest shareholders now hold 5.0% and 4.1% of the outstanding shares, respectively.

After further research, we found that the top 17 collectively own 51% of the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to examine institutional ownership data for a company, it also makes sense to examine analyst sentiment to know which way the wind is blowing. There are plenty of analysts covering the stock so it might be worthwhile to see what they are forecasting as well.

Inside possession on St. James’s Place

While the exact definition of an insider can be subjective, almost every board member considers an insider. Management ultimately replies to the board. However, it is not uncommon for managers to be board members, especially when they are founders or CEOs.

Most consider insider ownership to be a positive as it may indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated within this group.

Our latest data shows that insiders own less than 1% of St. James’s Place plc. Since this is a large company, we would expect only a small percentage from insiders. It is worth noting, however, that they own £ 27 million worth of stocks. It’s always good to see at least some insider ownership, but it might be worth checking to see if those insiders have sold.

General public property

The general public, with a 12% stake in the company, will not be easily ignored. While this property size may not be enough to sway a political decision in their favor, they can still have a collective influence on company policy.

Next Steps:

It is always worth thinking about the different groups that own shares in a company. But to better understand St. James’s Place we need to consider many other factors. To do this, you should check out the 2 warning signs We spotted with St. James’s Place.

Eventually the future is the most important. You can access it free Report on analyst forecast for the company.

Note: The numbers in this article are calculated using data for the past twelve months, which refers to the twelve month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual financial statements.

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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in the stocks mentioned.
*Interactive Brokers is rated the cheapest broker by StockBrokers.com

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About Nina Snider

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