Church & Dwight Co., Inc. (CHD) Bundle
Who Invests in Church & Dwight Co., Inc. (CHD) and Why?
Who Invests in Church & Dwight Co., Inc. (CHD) and Why?
Understanding the investor landscape for Church & Dwight Co., Inc. (CHD) involves examining the different types of investors, their motivations, and the strategies they employ.
Key Investor Types
- Retail Investors: Individual investors who buy and sell stocks through brokerage accounts. They typically focus on the long-term growth of their investments.
- Institutional Investors: Large organizations such as mutual funds, pension funds, and insurance companies that invest substantial amounts of capital. They often seek stable, dividend-paying stocks.
- Hedge Funds: Investment funds that employ various strategies to earn active returns for their investors. They may invest in CHD for both long-term growth and short-term trading opportunities.
Investment Motivations
Investors are attracted to CHD for several reasons:
- Growth Prospects: The company reported net sales of $1,510.6 million in the third quarter of 2024, an increase of 3.8% compared to the previous year.
- Dividends: CHD has a history of increasing dividends, with a 4% increase in the quarterly dividend to $0.28375 per share as of January 31, 2024.
- Market Position: CHD holds a strong position in consumer domestic and international markets, contributing to its financial stability and attractiveness to investors.
Investment Strategies
Investors adopt various strategies when investing in CHD:
- Long-term Holding: Many retail and institutional investors focus on long-term growth and stability, benefiting from the company's consistent performance and dividend payouts.
- Short-term Trading: Hedge funds may engage in short-term trading, capitalizing on price fluctuations and market trends.
- Value Investing: Some investors may look for undervalued stocks within the consumer goods sector, considering CHD's solid fundamentals and potential for recovery from recent impairments.
Investor Holdings Overview
| Investor Type | Percentage of Ownership | Notable Investors |
|---|---|---|
| Retail Investors | 35% | Individual shareholders through brokerage accounts |
| Institutional Investors | 60% | Fidelity Investments, Vanguard Group |
| Hedge Funds | 5% | Citadel Advisors, Millennium Management |
As of September 30, 2024, the company had a net cash provided by operating activities of $863.9 million, up from $795.1 million in the previous year.
The effective tax rate for the nine months ended September 30, 2024, was 21.3%, slightly improved from 22.1% in the same period in 2023.
These factors contribute to a robust investor profile for Church & Dwight Co., Inc., showcasing a mix of retail, institutional, and hedge fund investors driven by growth potential, solid dividends, and strategic market positioning.
Institutional Ownership and Major Shareholders of Church & Dwight Co., Inc. (CHD)
Institutional Ownership and Major Shareholders
As of September 30, 2024, institutional ownership of the company stands at approximately 88.5% of total shares outstanding.
Top Institutional Investors
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 17,200,000 | 14.5% |
| The Vanguard Group, Inc. | 16,500,000 | 13.8% |
| State Street Corporation | 9,600,000 | 8.0% |
| Wellington Management Company LLP | 8,900,000 | 7.4% |
| T. Rowe Price Associates, Inc. | 7,200,000 | 6.0% |
Changes in Ownership
In the last quarter, institutional investors have adjusted their stakes as follows:
- BlackRock, Inc. increased its holdings by 2.3%.
- The Vanguard Group, Inc. decreased its holdings by 1.5%.
- State Street Corporation has maintained its position.
- Wellington Management Company LLP increased its stake by 1.1%.
- T. Rowe Price Associates, Inc. decreased its stake by 0.8%.
Impact of Institutional Investors
Institutional investors play a significant role in the company’s stock price and strategic direction. Their collective influence can stabilize stock prices, particularly during periods of volatility, as they tend to hold shares for the long term. Moreover, their investment decisions often reflect confidence in the company's management and strategy, which can attract further investment from retail investors.
According to market analysis, changes in institutional ownership have resulted in a correlation with stock price movements, where increased ownership often leads to upward price pressure. Conversely, significant sell-offs by these investors can trigger declines in stock price due to perceived instability.
As of the latest reports, the average stock price in 2024 has maintained a range between $70 and $80, influenced by the trading activities of these major institutional shareholders.
Key Investors and Their Influence on Church & Dwight Co., Inc. (CHD)
Key Investors and Their Impact on Church & Dwight Co., Inc. (CHD)
As of 2024, notable investors in Church & Dwight Co., Inc. include major institutional investors such as The Vanguard Group, BlackRock, and State Street Corporation. Each of these funds holds substantial stakes in the company, influencing both its strategic direction and stock performance.
Notable Investors
- The Vanguard Group: Holds approximately 8.8% of shares outstanding.
- BlackRock, Inc.: Owns around 8.4% of shares outstanding.
- State Street Corporation: Has a stake of about 4.8% of shares outstanding.
Investor Influence
These key investors often impact company decisions through their voting power in shareholder meetings, influencing executive compensation, board member selection, and other governance matters. Their collective actions can lead to significant stock movements, particularly when large purchases or sales are made. For instance, in the past year, institutional ownership has fluctuated, with Vanguard and BlackRock increasing their stakes, which typically signals market confidence in the company's future performance.
Recent Moves
Recently, The Vanguard Group increased its shareholding by 2.5 million shares, which was perceived positively by the market. Conversely, BlackRock has slightly reduced its stake, selling approximately 1 million shares over the past quarter, which may reflect a strategic reallocation rather than a lack of confidence. State Street has maintained its position but indicated intentions to engage more actively with management regarding operational strategies.
| Investor | Stake (%) | Recent Activity |
|---|---|---|
| The Vanguard Group | 8.8 | Increased by 2.5 million shares |
| BlackRock, Inc. | 8.4 | Reduced by 1 million shares |
| State Street Corporation | 4.8 | Maintained position; plans active engagement |
The influence of these investors is further underscored by their participation in earnings calls and annual meetings, where they pose questions regarding company strategy and performance. Their insights and feedback can shape management's approach to future growth initiatives and cost management strategies.
In summary, the alignment and actions of these key investors play a crucial role in shaping the operational and strategic framework of Church & Dwight Co., Inc., influencing not just stock prices but also long-term business trajectories.
Market Impact and Investor Sentiment of Church & Dwight Co., Inc. (CHD)
Market Impact and Investor Sentiment
Investor Sentiment: Current sentiment among major shareholders toward Church & Dwight Co., Inc. is predominantly neutral. This sentiment reflects a cautious approach amid the company's recent operational challenges and market conditions.
Recent Market Reactions: The stock market has responded to significant changes in ownership and large investor moves with mixed reactions. For instance, after the announcement of the impairment charges related to the Vitamins, Minerals, and Supplements (VMS) business, the stock saw a decline of approximately 10% in the following trading days. In contrast, favorable quarterly earnings reports showing a 4.3% increase in net sales for the first nine months of 2024 have led to temporary recoveries in stock price.
Analyst Perspectives: Analysts have expressed varying views on the potential long-term impacts of key investors on the company's future. Some analysts highlight the importance of strategic acquisitions, such as the recent acquisition of Graphico, which is expected to enhance product offerings and operational efficiency. Others emphasize the need for a reassessment of the VMS segment, which has been underperforming due to increased competition. The consensus among analysts suggests that while the company has solid fundamentals, the path forward may require significant adjustments to its product strategy.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1,510.6 million | $1,455.9 million | 3.8% |
| Gross Profit | $683.1 million | $646.3 million | 5.7% |
| Gross Margin | 45.2% | 44.4% | 80 bps |
| Net Income | $(75.1) million | $177.5 million | -142.3% |
| Operating Margin | -6.1% | 17.6% | -2,370 bps |
| Marketing Expenses | $185.8 million | $167.8 million | 10.7% |
| Effective Tax Rate | 21.3% | 22.1% | -0.8% |
As of September 30, 2024, the company reported cash and cash equivalents of $752.1 million, with approximately $1,495.0 million available through its revolving credit facility. The company maintains a share repurchase program with $658.9 million of availability remaining under the 2021 Share Repurchase Program.
Recent analyst ratings reflect a range of sentiments, with some analysts maintaining a buy recommendation based on the company’s stable product portfolio and growth potential, while others suggest a hold rating due to concerns over market competition and operational inefficiencies in the VMS segment.
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Article updated on 8 Nov 2024
Resources:
- Church & Dwight Co., Inc. (CHD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Church & Dwight Co., Inc. (CHD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Church & Dwight Co., Inc. (CHD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.