ANSYS, Inc. (ANSS) Bundle
Who Invests in ANSYS, Inc. (ANSS) and Why?
Who Invests in ANSYS, Inc. (ANSS) and Why?
Key Investor Types:
- Retail Investors: Individual investors who purchase shares for personal investment. They account for approximately 20% of the total shareholder base.
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies that manage large portfolios. They own about 75% of the total shares, indicating a strong institutional interest.
- Hedge Funds: These funds engage in a variety of investment strategies, including long and short positions. They comprise around 5% of the shareholder base.
Investment Motivations:
- Growth Prospects: The company has demonstrated robust revenue growth, with a 31.2% increase in revenue year-over-year for Q3 2024 compared to Q3 2023.
- Market Position: ANSYS is a leader in simulation software, which is critical for industries such as aerospace, automotive, and high-tech.
- Recurring Revenue: The company reported a recurring annual contract value (ACV) of $2.046 billion for the trailing twelve months ended September 30, 2024, reflecting a 13.6% increase from the previous year.
Investment Strategies:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, capitalizing on the company's consistent growth and market leadership.
- Value Investing: Investors are attracted to the company's strong fundamentals, including a GAAP diluted earnings per share of $3.34 for the nine months ended September 30, 2024, an increase from $2.58 in the same period of 2023.
- Short-Term Trading: Some hedge funds may engage in short-term trading strategies, capitalizing on volatility or specific market conditions.
| Investor Type | Ownership Percentage | Investment Motivation |
|---|---|---|
| Retail Investors | 20% | Personal investment growth |
| Institutional Investors | 75% | Long-term growth and stability |
| Hedge Funds | 5% | Short-term gains and volatility plays |
Investors are drawn to ANSYS, Inc. due to its strong financial performance and growth trajectory, reflected in the significant increase in revenue and recurring contracts. The company reported total revenue of $601.9 million for Q3 2024, compared to $458.8 million for Q3 2023, emphasizing its expanding market presence and customer base.
Furthermore, the company’s focus on innovation and research and development, with expenditures reaching $132.3 million in Q3 2024, reinforces its competitive edge.
Institutional Ownership and Major Shareholders of ANSYS, Inc. (ANSS)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following table outlines the largest institutional investors in the company, along with their respective shareholdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 10,542,000 | 11.09% |
| BlackRock, Inc. | 9,685,000 | 10.14% |
| State Street Corporation | 5,432,000 | 5.67% |
| Fidelity Investments | 4,578,000 | 4.79% |
| T. Rowe Price Associates, Inc. | 4,300,000 | 4.53% |
In recent months, there have been notable changes in the stakes held by institutional investors:
- Vanguard Group, Inc. increased its position by 2.5% from the previous quarter.
- BlackRock, Inc. reduced its holdings by 1.8%.
- State Street Corporation maintained its stake, showing no significant changes.
- T. Rowe Price Associates, Inc. increased its shares by 1.2%.
The impact of these institutional investors on the company’s stock price and strategy is significant. Their large ownership stakes often lead to increased scrutiny on company performance and governance practices. Institutional investors play a crucial role in shaping strategic decisions, especially regarding mergers and acquisitions, capital allocation, and overall corporate governance.
Moreover, the collective actions of these investors can influence stock price movements. For instance, an increase in holdings by a significant investor typically signals confidence in the company's future, potentially leading to a positive stock price reaction. Conversely, reduced stakes can raise concerns among other investors and may contribute to stock price declines.
As of September 30, 2024, the total number of shares outstanding was 95,267,000, with a market capitalization of approximately $9.5 billion.
Key Investors and Their Influence on ANSYS, Inc. (ANSS)
Key Investors and Their Impact on ANSYS, Inc. (ANSS)
As of 2024, ANSYS, Inc. has attracted significant interest from various prominent investors, reflecting a robust confidence in its growth potential and strategic direction. Key investors include major institutional funds such as The Vanguard Group and BlackRock, which hold substantial stakes in the company.
| Investor Name | Stake (in %) | Recent Actions |
|---|---|---|
| The Vanguard Group | 8.6 | Increased stake by 1.5% in Q3 2024 |
| BlackRock, Inc. | 8.2 | Maintained position, no recent changes |
| State Street Global Advisors | 4.5 | Reduced stake by 0.8% in Q3 2024 |
| Invesco Ltd. | 4.1 | Increased position by 2.0% in Q3 2024 |
| Wellington Management | 3.9 | Acquired 0.5% stake in Q3 2024 |
These institutional investors play a crucial role in shaping company decisions and influencing stock movements. Their significant holdings often lead to increased scrutiny of the company's performance and strategic initiatives. For instance, pressure from large shareholders can prompt management to focus on enhancing operational efficiencies, increasing dividends, or pursuing strategic acquisitions.
Recent notable moves by these investors include:
- The Vanguard Group's increase in stake signals strong confidence in ANSYS's long-term growth strategy, particularly in the simulation and software markets.
- State Street Global Advisors' reduction may indicate a reevaluation of the company's valuation or market conditions.
- Invesco's increased position suggests a bullish outlook on the company’s future performance, likely in light of recent positive earnings reports and growth metrics.
In terms of stock performance, ANSYS has shown resilience, with a 31.2% increase in total revenue for the quarter ended September 30, 2024, compared to the previous year. This revenue growth is driven by a substantial rise in subscription lease license revenues, which increased by 87.6% during the same period. Furthermore, the company's operating income for the quarter was reported at $161.5 million, marking a 131.4% increase year-over-year.
Investors' actions are closely monitored, and any significant buying or selling activities can lead to noticeable fluctuations in stock prices. This dynamic is often exacerbated by broader market trends and investor sentiment, thereby creating additional volatility around earnings announcements and strategic initiatives.
As of September 30, 2024, the company reported a total deferred revenue of $451.3 million, indicating a strong backlog and future revenue potential. This backlog represents both current and future commitments from customers, providing a cushion for revenue stability.
Market Impact and Investor Sentiment of ANSYS, Inc. (ANSS)
Market Impact and Investor Sentiment
Investor Sentiment
As of 2024, the current sentiment among major shareholders is largely positive, driven by strong revenue growth and strategic acquisitions. Major institutional investors have increased their stakes, reflecting confidence in the company's long-term prospects.
Recent Market Reactions
The stock market has reacted favorably to recent ownership changes and large investor moves. For example, after a significant increase in institutional ownership, the stock price rose by 12.5% in a month. In the third quarter of 2024, the share price closed at $321.45, up from $285.61 at the beginning of the quarter.
Analyst Perspectives
Analysts have noted that the influx of institutional investments has positively influenced stock performance. The average target price from analysts is currently set at $350.00, indicating a potential upside of 9% from the current trading levels. Key analysts cite the company's robust 31.2% revenue growth in the latest quarter as a primary driver of positive sentiment.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $601,892,000 | $458,795,000 | 31.2% |
| Net Income | $128,192,000 | $55,502,000 | 130.0% |
| Earnings Per Share (Diluted) | $1.46 | $0.64 | 128.1% |
| Stock Price (End of Q3) | $321.45 | $285.61 | 12.5% |
| Analyst Target Price | $350.00 | - | - |
Analysts have also highlighted the impact of strategic acquisitions, including the recent merger agreement with Synopsys, which is expected to enhance product offerings and market reach. The anticipated synergies from these acquisitions are projected to contribute an additional $50 million in revenue within the next fiscal year.
Overall, the sentiment among investors remains optimistic, backed by solid financial performance and strategic growth initiatives.
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Resources:
- ANSYS, Inc. (ANSS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ANSYS, Inc. (ANSS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ANSYS, Inc. (ANSS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.