SCHEDULE: Berkowitz and Fairholme Trim Stake in St. Joe Co.

Bruce Berkowitz and Fairholme Capital Management have disclosed a reduction in their significant ownership stake in The St. Joe Company following a series of open-market sales.

Summary

• Amendment No. 36 to Schedule 13D reveals a reduction in beneficial ownership by Fairholme Capital Management and Bruce Berkowitz.
• Bruce Berkowitz now beneficially owns 18,804,567 shares, representing 32.8% of the company.
• Fairholme Capital Management holds 16,894,600 shares, or 29.4% of the class.
• Fairholme Funds, Inc. maintains a 27.3% stake with 15,695,824 shares.
• A total of 427,700 shares were sold in the open market between March 10, 2026, and May 7, 2026.
• The sales were executed at prices ranging from a high of $72.22 to a low of $65.33 per share.
• The total shares outstanding for the issuer are 57,409,746 as of April 27, 2026.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a cautious signal; while the long-term thesis may remain, the aggressive selling at declining prices by the company's most influential shareholder is a negative short-term indicator.

Positives

• Bruce Berkowitz and Fairholme remain the largest shareholders with a combined 32.8% interest, maintaining significant skin in the game.
• The reporting persons still hold over 18.8 million shares, suggesting the recent sales represent a minor portfolio rebalancing rather than a full exit.

Negatives

• Significant selling activity occurred in early May 2026, with 405,600 shares sold in just three days.
• The sale price has trended downward, dropping from $72.22 in mid-March to $65.33 by May 7.
• The liquidation of a large block of shares by the company's most prominent investor may signal a cooling of sentiment.

Risks

• High concentration of ownership remains a risk, as Bruce Berkowitz controls nearly one-third of the voting power.
• Continued selling by Fairholme could create persistent downward pressure on the stock price due to the volume of shares involved.
• Market perception of insider or major institutional selling often leads to increased volatility.

Future Outlook

No specific forward-looking guidance is provided in this ownership disclosure; however, the continued presence of Berkowitz as a 32.8% owner indicates a sustained long-term interest despite recent trimming.

Management Comments

• The Reporting Persons specifically disclaim beneficial ownership in the Shares reported herein except to the extent of their pecuniary interest therein.

Industry Context

StockSavvy.ai notes that The St. Joe Company is a unique real estate play with massive land holdings in Florida. Large-scale selling by its primary institutional backer, Fairholme, is often viewed as a bellwether for the fund's internal liquidity needs or a tactical shift in their real estate exposure.

Comparison to Industry Standards

• Ownership concentration of 32.8% is significantly higher than the average institutional holding in peer real estate developers like Howard Hughes Holdings or Forestar Group.
• The pace of selling (nearly 1% of the company in one week) is aggressive compared to standard institutional rebalancing.
• The use of open-market transactions for such large volumes is typical for Fairholme but can lead to higher price impact than block trades.

Stakeholder Impact

• Shareholders may experience downward pressure on the stock price if the market anticipates further selling from Fairholme.
• The company's management remains under the significant influence of a single large shareholder group.

Next Steps

• Monitor for subsequent Schedule 13D amendments to determine if Fairholme continues to liquidate its position.
• Watch for the issuer's next quarterly report to see if these sales correlate with any changes in company fundamentals.

Key Dates

Recommendation

While the selling is a negative technical signal, the reporting persons still maintain a massive 32.8% stake, suggesting they remain committed to the core investment. Investors should hold but exercise caution until the selling pressure subsides.

Keywords

The St. Joe Company, Fairholme Capital Management, Bruce Berkowitz, Schedule 13D, Insider Selling, Real Estate Development, Florida Real Estate, Institutional Ownership