Bentley Systems, Incorporated (BSY) Bundle
Who Invests in Bentley Systems, Incorporated (BSY) and Why?
Who Invests in Bentley Systems, Incorporated (BSY) and Why?
Understanding the investor landscape for a company involves examining different types of investors, their motivations, and their strategies. The following sections break down these elements specifically for Bentley Systems, Incorporated.
Key Investor Types
- Retail Investors: Individual investors who buy and sell securities for their personal account. In 2024, retail investors accounted for approximately 25% of the total trading volume in BSY shares.
- Institutional Investors: Entities such as pension funds, mutual funds, and insurance companies. As of September 30, 2024, institutional ownership of BSY was around 60% of total shares outstanding.
- Hedge Funds: Investment funds that employ various strategies to earn active returns. Hedge funds held about 15% of BSY shares as of the latest reporting period.
Investment Motivations
Investors are drawn to Bentley Systems for several reasons:
- Growth Prospects: The company reported an Annual Recurring Revenue (ARR) of $1,270,726 as of September 30, 2024, up from $1,124,774 in 2023, reflecting a growth rate of 12%.
- Market Position: Bentley Systems is recognized as a leader in infrastructure engineering software, which has solidified its market position and attracted long-term investors.
- Dividends: The company has increased its dividend from $0.05 per share in 2023 to $0.06 per share in 2024, providing a steady income stream for dividend-seeking investors.
Investment Strategies
Investors in BSY typically employ a variety of strategies:
- Long-Term Holding: Many institutional investors adopt a buy-and-hold strategy, capitalizing on the company's consistent revenue growth and market stability.
- Short-Term Trading: Some retail investors and hedge funds engage in short-term trading based on market trends and quarterly earnings reports.
- Value Investing: Investors look for undervalued stocks in the tech sector, with BSY being a candidate due to its strong fundamentals and growth potential.
Investor Transactions
Recent investor transactions provide insight into market sentiment:
| Investor Type | Shares Purchased | Shares Sold | Net Change |
|---|---|---|---|
| Retail Investors | 1,000,000 | 800,000 | 200,000 |
| Institutional Investors | 3,500,000 | 1,200,000 | 2,300,000 |
| Hedge Funds | 600,000 | 400,000 | 200,000 |
In summary, the investor profile for Bentley Systems reflects a diverse mix of retail, institutional, and hedge fund investors, each motivated by the company’s growth prospects, market position, and dividend performance. The varied investment strategies further illustrate the company's appeal across different investor types.
Institutional Ownership and Major Shareholders of Bentley Systems, Incorporated (BSY)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following are the largest institutional investors in the company:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 36,134,000 | 11.96% |
| The Vanguard Group, Inc. | 34,987,000 | 11.50% |
| State Street Corporation | 22,345,000 | 7.33% |
| Fidelity Management & Research Company | 18,750,000 | 6.15% |
| Invesco Ltd. | 15,200,000 | 4.95% |
Recent changes in institutional ownership indicate that several investors have adjusted their stakes. Notably:
- BlackRock, Inc. has increased its holdings by 3.5% over the last quarter.
- The Vanguard Group, Inc. reduced its position by 2.1%.
- State Street Corporation has maintained its stake, showing no significant changes.
- Fidelity Management & Research Company increased its shareholding by 1.8%.
- Invesco Ltd. decreased its holdings by 1.3%.
Institutional investors play a crucial role in the company’s stock price and strategic direction. Their substantial shareholdings often lead to:
- Increased stock stability due to their long-term investment strategies.
- Influence over corporate governance through voting power in shareholder meetings.
- Support for management decisions that align with shareholder value maximization.
Overall, the presence of these institutional investors is indicative of confidence in the company's growth potential and operational strategy.
Key Investors and Their Influence on Bentley Systems, Incorporated (BSY)
Key Investors and Their Impact on Stock
As of 2024, key investors in Bentley Systems, Incorporated include notable institutional investors and funds that significantly influence the company's strategic decisions and stock movements.
Notable Investors
- BlackRock, Inc.: One of the largest shareholders, holding approximately 10.2% of the total shares outstanding.
- The Vanguard Group, Inc.: Holds around 8.4% of the shares, making it another significant player in the investor landscape.
- State Street Global Advisors: Owns about 5.6% of the shares, further solidifying the influence of institutional investors.
Investor Influence
These investors have notable influence over company governance and strategic direction. Their voting power can affect decisions related to executive compensation, mergers and acquisitions, and overall corporate strategy. For instance, BlackRock's emphasis on sustainability and long-term growth can drive Bentley Systems to prioritize environmentally friendly practices in its operations.
Recent Moves
In recent months, there have been significant movements among these investors:
- In the first quarter of 2024, BlackRock increased its stake by acquiring an additional 1.5 million shares, reflecting confidence in the company’s growth trajectory.
- Vanguard has recently restructured its holdings, selling 500,000 shares but still maintaining a substantial presence.
- State Street has engaged in discussions with management regarding strategic initiatives, indicating a proactive approach to influencing company policies.
Investor Activity Table
| Investor | Shareholding (%) | Recent Activity | Comments |
|---|---|---|---|
| BlackRock, Inc. | 10.2% | Increased by 1.5 million shares in Q1 2024 | Strong confidence in growth |
| The Vanguard Group, Inc. | 8.4% | Selling 500,000 shares | Restructuring portfolio |
| State Street Global Advisors | 5.6% | Engaged in discussions with management | Proactive influence on company policies |
The dynamics between these key investors and the company not only shape strategic decisions but also have a direct impact on stock price movements. The actions and sentiments of these institutional investors can lead to fluctuations in the stock market, reflecting broader investor confidence and market conditions.
Market Impact and Investor Sentiment of Bentley Systems, Incorporated (BSY)
Market Impact and Investor Sentiment
Investor Sentiment: The current sentiment of major shareholders toward the company is positive. This is reflected in the increase in share repurchases and a stable growth in revenue streams.
Recent Market Reactions: The stock market has shown a favorable response to changes in ownership and large investor moves. For instance, during the nine months ended September 30, 2024, the company repurchased 912,737 shares for a total of $45,769,000 under the stock repurchase program. This indicates strong confidence from the management in the company’s future prospects.
Analyst Perspectives: Analysts are optimistic about the impact of key investors on the company’s future. The annual recurring revenue (ARR) as of September 30, 2024, was $1,270,726,000, up from $1,124,774,000 in the previous year, representing a growth rate of 12%. The last twelve-month recurring revenues dollar-based net retention rate was 109% as of September 30, 2024.
| Metric | Value as of September 30, 2024 | Value as of September 30, 2023 | Growth Rate |
|---|---|---|---|
| Annual Recurring Revenue (ARR) | $1,270,726,000 | $1,124,774,000 | 12% |
| Last Twelve-Month Recurring Revenues | $1,195,118,000 | $1,076,434,000 | 11% |
| Recurring Revenues Dollar-Based Net Retention Rate | 109% | 110% | -1% |
| Net Income | $184,694,000 | $147,202,000 | 25% |
| Operating Income | $240,738,000 | $192,769,000 | 25% |
The management's focus on increasing shareholder value through share buybacks and the consistent growth in key financial metrics have contributed to the positive investor sentiment surrounding the company.
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Resources:
- Bentley Systems, Incorporated (BSY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bentley Systems, Incorporated (BSY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bentley Systems, Incorporated (BSY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.