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Granite Ridge Resources, Inc. (NYSE: GRNT), a company valued at US$802m, is experiencing significant ownership from various entities. The general public holds a substantial 38% stake in the company. However, this may not be sufficient to sway company policy against the views of larger shareholders.
Institutional ownership stands at 60%, which can significantly influence the company’s stock price. Two investors, including Grey Rock Energy Management, LLC, hold a combined 53% stake in the company, with Grey Rock Energy owning 49%. Other notable shareholders include Northwestern (NASDAQ:) University, Endowment Arm, and Hamilton Lane (NASDAQ:) Incorporated, boasting 3.7% and 2.8% stakes respectively.
The preference of institutions for larger companies like Granite Ridge Resources can lead to swift fluctuations in share price if their stock view changes simultaneously. While their majority ownership necessitates that the board takes their preferences into account, there is a risk of institutions making poor investments.
Insiders own US$12m of Granite Ridge Resources’ shares, indicating an alignment of interests between shareholders and the board. Some board members are insiders themselves. However, this could result in power being concentrated within a small group. It is worth noting whether these insiders have been selling their shares.
Analysts covering the stock offer valuable performance insights. They have identified three warning signs for Granite Ridge Resources, underscoring the importance of considering these alongside ownership structure for a comprehensive understanding of the company’s future prospects.
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