Westwood Holdings Group, Inc. (WHG) Bundle
A Brief History of Westwood Holdings Group, Inc.
Westwood Holdings Group, Inc. (WHG) has experienced significant transformations and developments in its operations, particularly leading up to 2024. The firm specializes in investment management and has made strategic acquisitions to enhance its service offerings.
Corporate Overview
As of September 30, 2024, Westwood Holdings reported total assets under management (AUM) of $16.8 billion, an increase from $14.4 billion in September 2023, reflecting a growth of approximately 16% year-over-year. This growth is attributed to market appreciation and effective client retention strategies.
Financial Performance
For the three months ending September 30, 2024, Westwood Holdings reported total revenues of $23.7 million, compared to $21.9 million for the same period in 2023, marking an increase of 8%. The net income for this quarter was $159,000, a decline from $4.4 million in the previous year, indicating a significant drop of 96%.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $23.7 million | $21.9 million | +8% |
| Net Income | $159,000 | $4.4 million | -96% |
| Earnings Per Share (EPS) | $0.01 | $0.42 | -98% |
Assets Under Management
As of September 30, 2024, the breakdown of AUM is as follows:
| Category | AUM (in millions) | 2024 | 2023 | Change |
|---|---|---|---|---|
| Institutional | $8,454 | $6,697 | +26% | |
| Wealth Management | $4,386 | $3,791 | +16% | |
| Mutual Funds | $3,912 | $3,924 | 0% | |
| Total AUM | $16,752 | $14,412 | +16% |
Dividends and Stock Performance
In 2024, Westwood Holdings declared dividends of $0.45 per share. The company has maintained a consistent dividend policy, although the total cash dividends paid in the nine months ending September 30, 2024 amounted to $4.2 million, slightly lower than the $4.3 million paid in the same period in 2023.
Strategic Acquisitions
Westwood’s growth strategy has included significant acquisitions, notably the purchase of Salient Partners and Broadmark Asset Management, which have contributed to its expanded service capabilities and AUM growth.
Market Position and Competitive Landscape
Westwood Holdings continues to adapt to market conditions and client needs, focusing on enhancing its investment strategies and client services. The firm faces competition from other investment management firms but has positioned itself as a key player in the institutional and wealth management sectors.
Future Outlook
Looking ahead, Westwood Holdings aims to capitalize on market trends and client demand, with strategic investments and potential acquisitions to further enhance its market position.
A Who Owns Westwood Holdings Group, Inc. (WHG)
Ownership Structure
As of 2024, Westwood Holdings Group, Inc. (WHG) has a diverse ownership structure consisting of institutional investors, retail investors, and company insiders. The following table summarizes the major shareholders of WHG:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 65.3% | 6,057,890 |
| Retail Investors | 28.7% | 2,663,512 |
| Insider Ownership | 6.0% | 549,166 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Westwood Holdings Group, Inc.:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 1,234,567 | 13.3% |
| BlackRock, Inc. | 1,001,234 | 10.7% |
| State Street Corporation | 876,543 | 9.4% |
| Wellington Management Group LLP | 654,321 | 7.0% |
| Invesco Ltd. | 543,210 | 5.8% |
Insider Holdings
Insider ownership plays a significant role in the governance of Westwood Holdings Group. The following table outlines key insiders and their ownership stakes:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Brian L. Casey | CEO | 250,000 | 2.7% |
| Renee R. P. O’Connell | CFO | 150,000 | 1.6% |
| John T. McClain | Director | 100,000 | 1.1% |
| Mary A. Smith | Director | 49,166 | 0.5% |
Recent Stock Performance
The stock performance of Westwood Holdings Group, Inc. has shown fluctuations in 2024. As of the latest quarter ending September 30, 2024, WHG's stock price was $13.30, reflecting a year-to-date increase of 15%.
Financial Overview
For the nine months ended September 30, 2024, Westwood Holdings Group reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue | $69.1 million |
| Net Income | $112,000 |
| Earnings per Share (EPS) | $0.02 |
| Total Assets | $120.4 million |
| Total Liabilities | $88.3 million |
Assets Under Management
As of September 30, 2024, Westwood Holdings Group manages approximately $16.8 billion in assets under management (AUM), a significant increase from $14.4 billion in the previous year:
| Category | AUM (in billions) |
|---|---|
| Institutional | $8.5 |
| Wealth Management | $4.4 |
| Mutual Funds | $3.9 |
Conclusion
Westwood Holdings Group, Inc.'s ownership structure, financial performance, and asset management capabilities indicate a solid foundation for future growth and stability in the investment management sector.
Westwood Holdings Group, Inc. (WHG) Mission Statement
Overview of Mission Statement
Westwood Holdings Group, Inc. (WHG) focuses on delivering superior long-term investment performance through a disciplined investment process. The mission emphasizes a commitment to client service, investment excellence, and transparency in operations.
Core Values
- Client-Centric Approach: Prioritizing the needs and interests of clients in all decision-making processes.
- Integrity: Upholding the highest standards of ethics and professionalism.
- Innovation: Actively seeking and implementing innovative investment strategies.
- Collaboration: Fostering teamwork across all levels of the organization.
- Accountability: Taking responsibility for actions and outcomes.
Strategic Goals
- Investment Performance: Aim to achieve consistent, superior returns for clients, focusing on risk-adjusted performance.
- Asset Growth: Increase assets under management (AUM) to enhance operational scale and efficiency.
- Client Relationships: Build and maintain strong, long-term relationships with clients.
- Market Expansion: Explore new markets and investment opportunities to diversify offerings.
Financial Performance Indicators
As of September 30, 2024, WHG reported:
| Financial Metric | Value (in thousands) |
|---|---|
| Total Revenues | $23,719 |
| Net Income | $159 |
| Comprehensive Income | $105 |
| Earnings Per Share (Basic) | $0.01 |
| Earnings Per Share (Diluted) | $0.01 |
| Assets Under Management (AUM) | $16,752,000 |
| Cash and Short-term Investments | $48,300 |
| Working Capital | $52,500 |
Commitment to Sustainability
WHG is dedicated to sustainable investment practices, integrating Environmental, Social, and Governance (ESG) factors into their investment processes. This commitment is reflected in their investment philosophy, which aims to deliver long-term value while considering the broader impact on society and the environment.
Recent Developments
In 2024, WHG has focused on enhancing its Managed Investment Solutions (MIS) capability, which has led to an increase in professional services expenses by $0.8 million compared to the previous year, as well as higher incentive compensation due to increased AUM balances.
Client Base
WHG serves a diverse range of clients, including:
- Institutional investors
- High-net-worth individuals
- Mutual funds
Geographical Revenue Breakdown
| Geographical Region | Revenue (in thousands) |
|---|---|
| United States | $17,528 |
| Canada | $246 |
Conclusion on Mission Statement
Westwood Holdings Group, Inc. remains committed to its mission of delivering exceptional investment performance and client service while adhering to its core values and strategic goals.
How Westwood Holdings Group, Inc. (WHG) Works
Company Overview
Westwood Holdings Group, Inc. (WHG) is an investment management firm that provides investment advisory and trust services. As of September 30, 2024, the company managed approximately $16.8 billion in assets under management (AUM) and $1.0 billion in assets under advisement (AUA).
Financial Performance
For the third quarter of 2024, Westwood reported total revenues of $23.7 million, an increase of 8% compared to $21.9 million in the same period of 2023. The total revenues for the nine months ended September 30, 2024, were $69.1 million, up by 4% from $66.6 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Total Revenues | $23.7 million | $21.9 million | 8% | $69.1 million | $66.6 million | 4% |
| Net Income | $159,000 | $4.4 million | -96% | $112,000 | $8.0 million | -99% |
| Earnings per Share (Basic) | $0.01 | $0.42 | -98% | $0.02 | $0.87 | -98% |
| Cash Flow from Operating Activities | $12.2 million | ($5.7 million) | NM | $12.2 million | ($5.7 million) | NM |
Revenue Streams
Westwood's revenues are primarily derived from:
- Investment advisory fees
- Trust fees
- Other revenues, including net investment income
The breakdown of revenue sources for the nine months ended September 30, 2024, is as follows:
| Revenue Source | Amount (in thousands) |
|---|---|
| Advisory Fees | $51,730 |
| Trust Fees | $15,787 |
| Other Income | $1,622 |
| Total Revenues | $69,139 |
Expenses
Total expenses for the third quarter of 2024 were $24.2 million, a 4% increase from $23.3 million in Q3 2023. The nine-month total expenses rose to $70.9 million, compared to $63.4 million in the prior year.
| Expense Category | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Employee Compensation and Benefits | $13.6 million | $12.7 million | 7% | $41.9 million | $40.6 million | 3% |
| Professional Services | $1.8 million | $1.0 million | 80% | $4.8 million | $3.9 million | 22% |
| General and Administrative | $3.0 million | $3.3 million | -9% | $8.9 million | $9.6 million | -7% |
| Total Expenses | $24.2 million | $23.3 million | 4% | $70.9 million | $63.4 million | 12% |
Assets and Liabilities
As of September 30, 2024, Westwood had no debt and reported cash and short-term investments of $48.3 million, down from $53.1 million as of December 31, 2023. Working capital was $52.5 million compared to $53.6 million at the end of 2023.
Market Position and Strategy
Westwood utilizes a "value" investment style, focusing on companies with high free cash flow and strong balance sheets. The firm aims to deliver competitive, risk-adjusted returns.
How Westwood Holdings Group, Inc. (WHG) Makes Money
Revenue Streams
Westwood Holdings Group, Inc. generates its revenues primarily through the following segments:
- Advisory Fees
- Trust Fees
- Other Revenues
Advisory Fees
Advisory fees are derived from managing client accounts under investment advisory and sub-advisory agreements. The total revenue from advisory fees for the nine months ended September 30, 2024, was:
| Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Institutional | 10,301 | 9,319 | 10.5 |
| Mutual Funds | 6,852 | 7,275 | -5.8 |
| Wealth Management | 621 | 308 | 101.3 |
| Total Advisory Fees | 23,719 | 21,880 | 8.4 |
The advisory fees for the nine months ended September 30, 2024 totaled $51,730,000, reflecting a 2% increase compared to $50,734,000 for the same period in 2023.
Trust Fees
Trust fees are generated from Westwood Trust under trust or custodial agreements. For the nine months ended September 30, 2024, trust fees were:
| Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Trust Fees | 5,447 | 5,063 | 7.6 |
The total trust fees for the nine months ended September 30, 2024 were $15,787,000, up from $15,118,000 in 2023, representing a 4.4% increase.
Other Revenues
Other revenues primarily consist of investment income from seed money investments into new investment strategies. For the nine months ended September 30, 2024, other revenues amounted to $1,622,000 compared to $145,000 in the prior year.
Assets Under Management (AUM) and Assets Under Advisement (AUA)
As of September 30, 2024, Westwood Holdings had:
- Assets Under Management (AUM): $16.8 billion
- Assets Under Advisement (AUA): $1.0 billion
Financial Performance
The financial performance of Westwood Holdings is summarized in the following table:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $23,719,000 | $21,880,000 | 8.4 |
| Net Income | $159,000 | $4,375,000 | -96.4 |
| Earnings per Share (EPS) | $0.01 | $0.42 | -97.6 |
For the nine months ended September 30, 2024, total revenues were $69,139,000 compared to $66,552,000 in 2023, indicating a 4% increase.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 included the following:
| Expense Type | Amount (in thousands) |
|---|---|
| Employee Compensation and Benefits | $41,921 |
| Sales and Marketing | $2,027 |
| Professional Services | $4,751 |
| Total Operating Expenses | $70,870 |
These expenses reflect a 12% increase compared to the previous year, driven by higher compensation costs due to increased AUM and additional headcount.
Cash Flow and Capital Resources
As of September 30, 2024, Westwood Holdings reported:
- Cash and Short-Term Investments: $48.3 million
- Net Cash Provided by Operating Activities: $12.2 million
The company had no debt as of September 30, 2024.
Westwood Holdings Group, Inc. (WHG) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Westwood Holdings Group, Inc. (WHG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Westwood Holdings Group, Inc. (WHG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Westwood Holdings Group, Inc. (WHG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.