What Percentage Of Daily Journal Corporation (NASDAQ:DJCO) Shares Do Insiders Own?

By
Simply Wall St
Published
January 24, 2021
NasdaqCM:DJCO
Source: Shutterstock

A look at the shareholders of Daily Journal Corporation (NASDAQ:DJCO) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Daily Journal is a smaller company with a market capitalization of US$469m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Daily Journal.

Check out our latest analysis for Daily Journal

ownership-breakdown
NasdaqCM:DJCO Ownership Breakdown January 25th 2021

What Does The Institutional Ownership Tell Us About Daily Journal?

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.

Daily Journal already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Daily Journal's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqCM:DJCO Earnings and Revenue Growth January 25th 2021

Hedge funds don't have many shares in Daily Journal. Looking at our data, we can see that the largest shareholder is Roseman Wagner Wealth Management with 18% of shares outstanding. Richard Esbenshade is the second largest shareholder owning 9.8% of common stock, and Peter Kaufman holds about 9.5% of the company stock. Peter Kaufman, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Daily Journal

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.

Our information suggests that insiders maintain a significant holding in Daily Journal Corporation. It has a market capitalization of just US$469m, and insiders have US$150m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public holds a 29% stake in Daily Journal. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Daily Journal is showing 2 warning signs in our investment analysis , you should know about...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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. 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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