Exploring Ceridian HCM Holding Inc. (CDAY) Investor Profile: Who’s Buying and Why?

Who Invests in Ceridian HCM Holding Inc. (CDAY) and Why?

Who Invests in Ceridian HCM Holding Inc. and Why?

Understanding the investor profile of Ceridian HCM Holding Inc. (CDAY) provides insights into the types of stakeholders attracted to the company and their motivations for investment.

Key Investor Types

• Retail Investors: Individual investors who purchase shares through brokerage accounts. They often invest based on personal research or recommendations.
• Institutional Investors: Entities like mutual funds, pension funds, and insurance companies that invest large sums of money. They often focus on long-term growth.
• Hedge Funds: Investment funds that employ various strategies to earn active returns for their investors. They may engage in short selling or leverage their investments.

Investment Motivations

Investors are drawn to Ceridian HCM for various reasons:

• Growth Prospects: The company reported a total revenue of $1,513.7 million for the year 2023, marking a growth of 21.5% year-over-year.
• Recurring Revenue: With a recurring revenue of $1,297.3 million in 2023, investors are attracted to the stability and predictability of this income source.
• Market Position: Ceridian's Dayforce platform is recognized as a leader in the Human Capital Management (HCM) space, enhancing investor confidence.

Investment Strategies

Different investor types employ various strategies when investing in Ceridian HCM:

• Long-Term Holding: Institutional investors typically adopt a long-term approach, capitalizing on the company's growth trajectory and market position.
• Short-Term Trading: Retail investors might engage in short-term trading to capitalize on market volatility, especially given the company's stock performance.
• Value Investing: Some investors may view Ceridian as undervalued based on its growth metrics and potential for future earnings, leading to a value-investing strategy.

Investor Statistics

In conclusion, the diverse investor base of Ceridian HCM reflects its strong market position and robust growth potential, appealing to various investment strategies and motivations.

Institutional Ownership and Major Shareholders of Ceridian HCM Holding Inc. (CDAY)

Institutional Ownership and Major Shareholders

As of early 2024, the institutional ownership landscape for Dayforce, Inc. (formerly Ceridian HCM Holding Inc.) shows a significant concentration of shares among major institutional investors. Below is a detailed overview of the top institutional investors and their respective shareholdings:

Recent trends indicate that institutional investors have been actively adjusting their positions in the company. Over the last quarter, the following changes have been noted:

• The Vanguard Group increased its stake by 2.3% from the previous quarter.
• BlackRock reduced its holdings by 1.5%.
• FMR LLC increased its shares by 1.7%.
• State Street Corporation maintained its position without significant change.
• Invesco Ltd. increased its stake by 0.9%.
• Goldman Sachs Group decreased its holdings by 0.5%.

Institutional investors play a crucial role in shaping the stock price and strategic direction of Dayforce, Inc. Their investments reflect confidence in the company's growth potential and operational performance. The presence of large institutional investors can also lead to increased stock price stability, as these investors tend to have a longer investment horizon compared to retail investors.

The overall institutional ownership currently stands at approximately 70% of the total shares outstanding, indicating a strong endorsement from the market. This level of institutional investment is often associated with higher scrutiny and governance standards, which can benefit the company in strategic decision-making processes.

Key Investors and Their Influence on Ceridian HCM Holding Inc. (CDAY)

Key Investors and Their Impact on Ceridian HCM Holding Inc. (CDAY)

In the investment landscape of Ceridian HCM Holding Inc. (CDAY), several notable investors play a significant role in shaping the company's trajectory. These investors range from large institutional funds to influential individuals, whose actions can impact not only stock prices but also strategic decisions within the company.

Notable Investors

• Vanguard Group: One of the largest shareholders, owning approximately 12.4% of total shares as of the latest filings.
• BlackRock, Inc.: Holds around 10.1% of the company's shares, making it a key player in Ceridian's investor base.
• FMR LLC (Fidelity): Owns about 8.5% of the shares, contributing to its influence in shareholder meetings.
• State Street Corporation: With a stake of approximately 7.3%, State Street is another significant institutional investor.

Investor Influence

These major institutional investors have considerable influence over company decisions. Their voting power in shareholder meetings can shape board compositions and influence executive compensation packages. For instance, Vanguard and BlackRock are known for advocating for corporate governance reforms, which can lead to changes in operational strategies aimed at enhancing shareholder value.

Moreover, the presence of these funds often attracts additional investors, bolstering stock liquidity and stability. Their investment strategies, particularly in promoting sustainability and ethical governance, can also drive Ceridian to adopt practices that align with these values, potentially improving its market reputation.

Recent Moves

Recently, Vanguard Group increased its stake in Ceridian from 11.9% to 12.4%, signaling confidence in the company's growth trajectory following a robust earnings report. BlackRock also made headlines by acquiring an additional 1.3 million shares during the last quarter, reflecting their bullish outlook on the stock.

On the other hand, FMR LLC has reduced its holdings slightly, from 9.0% to 8.5%, potentially reallocating capital to other investments. This move has raised questions among analysts about the long-term commitment of Fidelity to Ceridian, although it remains a significant stakeholder.

These movements highlight the dynamic nature of Ceridian's investor profile, where strategic decisions by influential investors can significantly impact stock performance and corporate governance.

Market Impact and Investor Sentiment of Ceridian HCM Holding Inc. (CDAY)

Market Impact and Investor Sentiment

Investor Sentiment: As of early 2024, the current sentiment of major shareholders toward the company is predominantly positive. Institutional ownership stands at approximately 93%, indicating strong backing from major investors. Notably, large institutions have increased their positions, reflecting confidence in the company’s growth trajectory.

Recent Market Reactions: The stock has shown resilience, with a year-to-date increase of 15% as of February 2024. The stock price was $45.67 at the start of 2024 and reached $52.66 by mid-February, signaling a strong market response to recent positive earnings reports and strategic initiatives. The stock's volatility has decreased, with a beta of 0.85, suggesting lower risk compared to the overall market.

Analyst Perspectives: Analysts are optimistic about the company’s future. The consensus price target among analysts is $60, representing an upside potential of approximately 14% from current levels. Analysts highlight the company’s robust revenue growth of 21.5% year-over-year in 2023, with expected recurring revenue growth of 20% to 21% in 2024. Key analysts have reiterated a “Buy” rating, emphasizing the strong demand for the company’s HCM solutions.