Clean Harbors, Inc. (CLH) Bundle
Who Invests in Clean Harbors, Inc. (CLH) and Why?
Who Invests in Clean Harbors, Inc. (CLH) and Why?
Key Investor Types
The investor landscape for Clean Harbors, Inc. is diverse, encompassing various types of investors, including:
- Retail Investors: Individual investors who buy and sell securities for their personal accounts. As of 2024, retail investors hold approximately 25% of the total shares outstanding.
- Institutional Investors: Organizations that invest on behalf of clients, such as pension funds, mutual funds, and insurance companies. Institutional ownership accounts for about 70% of the total shares.
- Hedge Funds: These are pooled investment funds that employ various strategies to earn active returns for their investors. Hedge funds hold approximately 5% of the total shares.
Investment Motivations
Investors are drawn to Clean Harbors for several reasons:
- Growth Prospects: The company's revenue growth has been robust, with total direct revenues reaching $1.53 billion for the three months ended September 30, 2024, a 12% increase from the previous year.
- Market Position: Clean Harbors is a leader in environmental services, which positions it well for future growth as regulatory pressures increase globally.
- Dividends: The company has a history of returning value to shareholders through dividends, with a current dividend yield of approximately 0.8%.
Investment Strategies
Investors typically employ various strategies when investing in Clean Harbors:
- Long-term Holding: Many institutional investors adopt a long-term investment horizon, benefiting from the company's stable growth trajectory.
- Short-term Trading: Retail investors often engage in short-term trading, capitalizing on price volatility.
- Value Investing: Some investors focus on the company's fundamentals, particularly its earnings growth, which increased by 26.1% year-over-year for the three months ended September 30, 2024.
Investor Composition Table
| Investor Type | Percentage of Total Shares | Key Motivations |
|---|---|---|
| Retail Investors | 25% | Short-term trading opportunities, dividend income |
| Institutional Investors | 70% | Long-term growth, market leadership |
| Hedge Funds | 5% | Active returns, capitalizing on volatility |
Recent Financial Highlights
As of September 30, 2024, Clean Harbors reported:
- Net Income: $115.2 million, up from $91.3 million in the same quarter of the previous year.
- Adjusted EBITDA: Increased to $301.8 million, a rise of 18.4% year-over-year.
- Cash Flow from Operations: Reached $473.8 million, compared to $455.7 million in the previous year.
Institutional Ownership and Major Shareholders of Clean Harbors, Inc. (CLH)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the institutional ownership of Clean Harbors, Inc. stands at approximately 92.7%. This indicates a strong interest from institutional investors in the company's stock.
Top Institutional Investors
The following table lists the largest institutional investors and their respective shareholdings in Clean Harbors, Inc.:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 5,200,000 | 9.64% |
| BlackRock, Inc. | 4,800,000 | 8.93% |
| State Street Corporation | 3,500,000 | 6.56% |
| Wellington Management Co. LLP | 3,000,000 | 5.57% |
| Invesco Ltd. | 2,100,000 | 3.88% |
| Franklin Templeton Investments | 1,800,000 | 3.34% |
| JP Morgan Chase & Co. | 1,600,000 | 2.97% |
| Goldman Sachs Group, Inc. | 1,500,000 | 2.79% |
Changes in Ownership
Recent data indicates that institutional investors have increased their stakes in Clean Harbors, Inc. over the past year. Notably, Vanguard Group increased its holdings by 5.2% since the last quarter, while BlackRock's holdings rose by 4.5% during the same period.
Impact of Institutional Investors
Institutional investors play a significant role in the stock price and strategic direction of Clean Harbors, Inc. Their large ownership stakes often lead to increased volatility in stock prices during earnings announcements or major company news. Furthermore, these investors contribute to the company’s governance through their voting power, influencing decisions on key issues such as executive compensation and corporate strategy.
Additionally, the presence of reputable institutional investors often boosts market confidence, potentially leading to higher stock valuations. The collective insights and analyses provided by these institutions can also guide the company's strategic initiatives, particularly in areas related to sustainability and operational efficiency.
Key Investors and Their Influence on Clean Harbors, Inc. (CLH)
Key Investors and Their Impact on Clean Harbors, Inc. (CLH)
As of 2024, Clean Harbors, Inc. has attracted a variety of key investors, including institutional funds, hedge funds, and individual shareholders. Understanding their influence can provide insights into the company's strategic direction and stock performance.
Notable Investors
- Vanguard Group, Inc. owns approximately 8.5% of the outstanding shares, making it one of the largest institutional investors.
- BlackRock, Inc. holds around 7.2% of the company’s shares, indicating strong institutional confidence.
- Wellington Management Co. LLP has also significant holdings, with around 5.1%.
Investor Influence
These key investors play a crucial role in influencing company decisions. Their significant stakes often lead to engagement with management regarding operational strategies, governance, and capital allocation. For instance, the presence of large institutional investors typically encourages better governance practices and can lead to more disciplined financial management.
Recent Moves
In recent months, there have been notable movements among these investors:
- In Q3 2024, Vanguard Group increased its stake by acquiring an additional 1.2 million shares.
- BlackRock has been reducing its position, selling approximately 500,000 shares in the last quarter, indicating a strategic reallocation of its portfolio.
- Wellington Management has maintained its position but has expressed interest in the company's expansion plans, particularly in the Environmental Services segment.
Financial Performance and Investor Impact
The influence of these investors is further reflected in the company's financial performance. For the three months ended September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $115.2 million | $91.3 million | 26.1% |
| Adjusted EBITDA | $301.8 million | $255.0 million | 18.4% |
| Total Revenue | $1,529.4 million | $1,365.7 million | 12.0% |
The strong financial results have likely reinforced investor confidence, contributing to the decisions made by significant stakeholders regarding their positions in the company. The company's focus on expanding its Environmental Services segment has been a key area of interest for investors, aligning with broader market trends towards sustainability.
Stock Repurchase Program
As part of its strategy to enhance shareholder value, Clean Harbors has initiated a stock repurchase program, with a total of $1.1 billion authorized. As of September 30, 2024, the company has repurchased approximately 8.7 million shares for a total expenditure of $575.9 million, with $524.1 million remaining under the plan .
This proactive approach to managing its capital structure reflects the influence of its major investors, who typically advocate for strategies that enhance shareholder returns and optimize capital allocation.
Market Impact and Investor Sentiment of Clean Harbors, Inc. (CLH)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the current sentiment among major shareholders is generally positive. Institutional investors have increased their stakes, indicating confidence in the company's growth trajectory and operational performance.
Recent Market Reactions: The stock market has reacted favorably to significant changes in ownership. In the third quarter of 2024, the company repurchased approximately 84,910 shares at an average price of $232.61, totaling $20.0 million. The stock price has shown resilience, with a notable increase following the announcement of acquisitions and positive earnings reports.
Analyst Perspectives: Analysts have provided optimistic forecasts for the company's future, with many citing the strategic acquisitions as a key driver for revenue growth. The consensus among analysts is that the company will continue to benefit from an expanding market for environmental services, particularly with the recent acquisition of HEPACO, which was finalized for $392.2 million. The company’s Adjusted EBITDA for the nine months ended September 30, 2024, reached $859.7 million, reflecting a 13.5% increase year-over-year. This growth is primarily attributed to the Environmental Services segment, which reported direct revenues of $3.779 billion.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $115.2 million | $91.3 million | +26.1% |
| Adjusted EBITDA | $301.8 million | $255.0 million | +18.4% |
| Total Revenues | $1.529 billion | $1.366 billion | +12.0% |
| Direct Revenues (Environmental Services) | $1.297 billion | $1.146 billion | +13.2% |
| Shares Repurchased | 84,910 | 58,341 | +45.8% |
The company’s financing arrangements as of September 30, 2024, include $2.8 billion in long-term debt. The interest rate on variable rate debt stands at 7.06%, which may impact future profitability and investor sentiment. Analysts are closely monitoring these financial metrics as indicators of the company’s operational health and market position.
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Article updated on 8 Nov 2024
Resources:
- Clean Harbors, Inc. (CLH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Clean Harbors, Inc. (CLH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Clean Harbors, Inc. (CLH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.