Emerald Holding, Inc. (EEX) Bundle
Who Invests in Emerald Holding, Inc. (EEX) and Why?
Who Invests in Emerald Holding, Inc. (EEX) and Why?
Key Investor Types
Investors in Emerald Holding, Inc. (EEX) can be categorized into several key types:
- Retail Investors: Individual investors who purchase shares for personal accounts. As of September 30, 2024, retail investors accounted for approximately 9.2% of the total share ownership.
- Institutional Investors: These include mutual funds, pension funds, and other large entities. Institutional ownership stood at around 90.8% as of September 30, 2024, primarily driven by investment funds affiliated with Onex Corporation.
- Hedge Funds: These investors typically engage in more aggressive strategies such as short selling and leverage. Hedge funds have been active in the stock, with a notable investment from Onex Partners V LP, holding a significant portion of the company’s common stock.
Investment Motivations
Investors are attracted to EEX for several reasons:
- Growth Prospects: The company has shown potential for growth, with revenues increasing to $292.0 million for the nine months ended September 30, 2024, up from $281.3 million in the same period for 2023.
- Market Position: EEX operates in the event management and trade shows sector, which is expected to rebound as in-person events gain momentum post-pandemic.
- Dividends: The company declared a dividend of $0.015 per share for the quarter ending December 31, 2024, appealing to income-focused investors.
Investment Strategies
Investors employ various strategies when investing in EEX:
- Long-term Holding: Many institutional investors adopt a long-term perspective, focusing on the company's ability to grow its revenue and market share over time.
- Short-term Trading: Retail investors often engage in short-term trading, capitalizing on market volatility and price movements.
- Value Investing: Some investors may consider EEX undervalued based on its financial metrics, such as a price-to-earnings ratio that reflects its growth potential despite recent losses.
Financial Overview
The financial data as of September 30, 2024, indicates a net loss of $2.9 million, a decline from a net income of $9.7 million in the comparable period for 2023. Adjusted EBITDA increased to $68.6 million for the nine months ended September 30, 2024, compared to $61.9 million for the same period in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenues | $72.6 million | $72.5 million | +0.1% |
| Net Income (Loss) | $(11.1) million | $10.7 million | - |
| Adjusted EBITDA | $12.5 million | $10.8 million | +15.7% |
| Organic Revenue | $58.7 million | $62.0 million | -5.3% |
Institutional Ownership and Major Shareholders of Emerald Holding, Inc. (EEX)
Institutional Ownership and Major Shareholders
The following table outlines the largest institutional investors holding shares in Emerald Holding, Inc. (EEX) as of September 30, 2024:
| Institutional Investor | Shares Held (in millions) | Percentage of Total Shares |
|---|---|---|
| Onex Corporation | 71.4 | 35.2% |
| BlackRock, Inc. | 10.5 | 5.2% |
| The Vanguard Group, Inc. | 9.2 | 4.6% |
| Wellington Management | 7.3 | 3.6% |
| State Street Global Advisors | 6.8 | 3.4% |
Changes in Ownership
Recent data indicates that institutional investors have made notable adjustments to their holdings in Emerald Holding, Inc.:
- Onex Corporation increased its stake by 2.1 million shares in Q3 2024.
- BlackRock, Inc. decreased its holdings by 0.5 million shares during the same period.
- The Vanguard Group, Inc. maintained its position with no changes in shareholding.
- Wellington Management increased its shares by 0.4 million.
- State Street Global Advisors decreased its stake by 0.3 million shares.
Impact of Institutional Investors
Institutional investors play a significant role in the stock price and strategic direction of Emerald Holding, Inc. Their collective ownership influences market perception and can impact stock volatility:
- With over 50% of shares held by institutional investors, their actions can lead to significant price movements.
- Institutional buying often signals confidence in the company’s future, which can drive stock prices up.
- Conversely, large sell-offs may trigger panic selling among retail investors, leading to price declines.
- These investors also contribute to company strategy discussions, particularly in board meetings, guiding management decisions.
Emerald Holding, Inc. continues to attract institutional interest, reflecting its potential for growth and stability in the events industry.
Key Investors and Their Influence on Emerald Holding, Inc. (EEX)
Key Investors and Their Impact on EEX
Emerald Holding, Inc. (EEX) has attracted various notable investors, including institutional funds and individual stakeholders who significantly influence the company's strategic direction and stock performance.
Notable Investors
- BlackRock, Inc. - One of the largest asset management firms globally, BlackRock is known for its substantial holdings in publicly traded companies. As of the latest reports, BlackRock holds approximately 9.5 million shares, representing about 14.5% of the total outstanding shares.
- Wellington Management - This investment management firm has a notable stake, owning around 7.2 million shares, which accounts for approximately 11.0% of the company’s equity.
- Vanguard Group, Inc. - Vanguard has also invested heavily, with holdings of about 6.3 million shares, translating to approximately 9.7% of total shares outstanding.
Investor Influence
These investors play a crucial role in shaping the company's governance and operational strategies. For instance, BlackRock's involvement often leads to a focus on sustainability practices, pushing the company to adopt more environmentally friendly initiatives. Wellington Management's active engagement can drive operational efficiencies and cost management strategies, while Vanguard's emphasis on long-term growth influences strategic planning.
Recent Moves
Recently, BlackRock increased its stake by acquiring an additional 1.2 million shares in the last quarter, indicating confidence in the company's growth trajectory. Wellington Management also reported a 5% increase in its holdings, reflecting a bullish outlook amid recent operational changes. Conversely, Vanguard has slightly reduced its position by selling approximately 200,000 shares, a move that may suggest a reevaluation of its investment strategy.
| Investor | Shares Held | Percentage of Total Shares | Recent Activity |
|---|---|---|---|
| BlackRock, Inc. | 9,500,000 | 14.5% | Increased by 1,200,000 shares |
| Wellington Management | 7,200,000 | 11.0% | Increased by 5% |
| Vanguard Group, Inc. | 6,300,000 | 9.7% | Decreased by 200,000 shares |
The actions of these key investors not only impact stock price movements but also lead to significant strategic discussions within the boardroom, ultimately influencing the company's direction and performance in the market.
Market Impact and Investor Sentiment of Emerald Holding, Inc. (EEX)
Market Impact and Investor Sentiment
Investor Sentiment
As of 2024, investor sentiment towards the company remains neutral. Major shareholders have shown cautious optimism, influenced by recent performance metrics and strategic acquisitions.
Recent Market Reactions
The stock market has reacted modestly to changes in ownership. For instance, after a significant acquisition announcement, the stock price initially rose by 3.5%, reflecting investor confidence in the strategic direction. However, subsequent fluctuations have resulted in a current stock price of $5.20, down from a recent high of $6.00.
Analyst Perspectives
Analysts have provided mixed insights regarding the impact of key investors on the company's future. The consensus indicates that while the acquisitions are expected to enhance revenue streams, the company faces challenges related to integration costs and market competition. The average target price set by analysts is $6.50, suggesting potential upside from current levels.
| Metric | Value |
|---|---|
| Current Stock Price | $5.20 |
| Recent High | $6.00 |
| Analyst Average Target Price | $6.50 |
| Recent Acquisition Impact (Stock Price Change) | +3.5% |
| Net Loss (Q3 2024) | $(11.1) million |
| Adjusted EBITDA (Q3 2024) | $12.5 million |
| Organic Revenue (Q3 2024) | $58.7 million |
Key investors have shown interest due to the company’s strategic acquisitions, such as the recent purchase of Hotel Interactive for $13.5 million, which is expected to enhance its event portfolio. However, the company faces significant challenges, including a net loss of $(11.1) million for the last quarter, raising concerns among analysts about its profitability trajectory moving forward.
Emerald Holding, Inc. (EEX) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Emerald Holding, Inc. (EEX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Emerald Holding, Inc. (EEX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Emerald Holding, Inc. (EEX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.