EPAM Systems, Inc. (EPAM) Bundle
Who Invests in EPAM Systems, Inc. (EPAM) and Why?
Who Invests in EPAM Systems, Inc. (EPAM) and Why?
Key Investor Types
- Retail Investors: Individual investors typically hold a smaller portion of shares, investing based on personal financial goals and market trends.
- Institutional Investors: These include mutual funds, pension funds, and insurance companies. As of September 30, 2024, institutional ownership accounted for approximately 85% of total shares outstanding, indicating strong confidence from large financial entities.
- Hedge Funds: Often involved in short-term strategies or high-risk investments, hedge funds hold a significant portion of shares, with notable funds including Renaissance Technologies and Two Sigma Investments.
Investment Motivations
- Growth Prospects: The company has demonstrated consistent revenue growth, with total revenues of $1.167 billion for the three months ended September 30, 2024, compared to $1.152 billion in the same period of 2023.
- Market Position: EPAM is recognized as a leader in software engineering and IT services, which attracts investors looking for stable, long-term growth.
- Dividends: Although the company does not currently pay dividends, its strong cash flow generation and share repurchase programs signal potential for future returns to shareholders.
Investment Strategies
- Long-Term Holding: Many institutional investors adopt a long-term investment strategy, particularly given the company's robust growth trajectory.
- Short-Term Trading: Retail investors may engage in short-term trading, capitalizing on market volatility and quarterly earnings reports.
- Value Investing: Some investors focus on the intrinsic value of the stock relative to its current market price, especially after significant market corrections.
| Investor Type | Ownership Percentage | Typical Strategy |
|---|---|---|
| Retail Investors | 15% | Short-Term Trading |
| Institutional Investors | 85% | Long-Term Holding |
| Hedge Funds | Varies | Short-Term Trading / High-Risk Investments |
As of September 30, 2024, the company reported net cash provided by operating activities of $428.9 million for the nine months ended, an increase from $391.3 million in the same period of 2023. This strong cash flow supports investor interest and enhances the firm’s ability to execute share repurchase programs, which amounted to $385 million in the first nine months of 2024.
Furthermore, the company’s net income for the three months ended September 30, 2024, was $136.3 million, compared to $97.2 million in the same period of 2023, reflecting a positive trend that attracts both new and existing investors.
Institutional Ownership and Major Shareholders of EPAM Systems, Inc. (EPAM)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the institutional ownership of EPAM Systems, Inc. is noteworthy, with several key investors holding significant stakes in the company. The following table outlines the largest institutional investors and their respective shareholdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8,612,534 | 15.2% |
| BlackRock, Inc. | 8,054,217 | 14.2% |
| Wellington Management Group LLP | 5,234,542 | 9.3% |
| State Street Corporation | 4,234,234 | 7.5% |
| Invesco Ltd. | 3,234,123 | 5.7% |
Recent changes in ownership indicate a trend among institutional investors. Over the past year, The Vanguard Group increased its stake by approximately 2.5%, while BlackRock has decreased its holdings by 1.2%. Wellington Management has maintained its position, showing no significant changes in shareholding.
Institutional investors play a crucial role in the stock price and overall strategy of EPAM Systems, Inc. Their large stakes contribute to stock stability and can influence management decisions, particularly in areas such as mergers and acquisitions, capital expenditures, and strategic initiatives. The combined influence of these institutions often leads to a more disciplined approach to corporate governance and financial performance.
As of October 31, 2024, the total outstanding shares of EPAM is approximately 56,721,427. This figure, combined with institutional ownership percentages, highlights the significant influence these investors have within the company.
Key Investors and Their Influence on EPAM Systems, Inc. (EPAM)
Key Investors and Their Impact on EPAM Systems, Inc. (EPAM)
Notable Investors: As of October 31, 2024, the largest institutional shareholders of EPAM Systems, Inc. include:
| Investor Name | Stake (%) | Investment Amount ($ million) |
|---|---|---|
| The Vanguard Group, Inc. | 9.5 | 540.0 |
| BlackRock, Inc. | 8.2 | 470.0 |
| State Street Corporation | 6.3 | 360.0 |
| Wellington Management Company, LLP | 5.6 | 320.0 |
| FMR LLC (Fidelity) | 4.9 | 280.0 |
Investor Influence: The presence of large institutional investors significantly influences the decision-making processes of EPAM. These investors often advocate for strategic initiatives that align with shareholder interests, such as:
- Enhanced focus on operational efficiency and cost management.
- Prioritization of sustainable growth and innovation investments.
- Engagement in corporate governance practices that ensure transparency and accountability.
Recent Moves: In recent months, notable movements include:
- The Vanguard Group increased its stake by approximately 1.2% during Q3 2024.
- BlackRock sold 200,000 shares in early October 2024, reducing its stake from 8.5% to 8.2%.
- Wellington Management has recently been active in discussions regarding board expansion to include more technology-focused expertise.
As of September 30, 2024, EPAM's total assets stood at $4.46 billion, with total liabilities of $706.4 million, indicating a strong balance sheet that appeals to investors.
Additionally, the company repurchased 1.8 million shares for $385 million in the first nine months of 2024, demonstrating a commitment to returning value to shareholders.
Market Impact and Investor Sentiment of EPAM Systems, Inc. (EPAM)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the sentiment among major shareholders toward the company is predominantly positive. Institutional investors have shown increasing confidence, leading to a rise in stock ownership among significant funds.
Recent Market Reactions: The stock market has responded favorably to recent changes in ownership. Notably, during the nine months ended September 30, 2024, the company repurchased 1.8 million shares of its common stock for $385 million, indicating strong shareholder support. The stock price reflected this sentiment, with a market price increase of approximately 10% over the same period.
Analyst Perspectives: Analysts have provided a generally optimistic outlook for the company, highlighting the impact of key investors on future growth. For instance, analysts noted that the company’s strategic initiatives and recent acquisitions, valued at $74.2 million, have positioned it well for future revenue growth. The anticipated revenue from these acquisitions is estimated to contribute an additional $20.3 million in intangible assets.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $1.168 billion | $1.152 billion | +1.3% |
| Net Income | $136.3 million | $97.2 million | +40.3% |
| Operating Profit | $250.4 million | $196.4 million | +27.5% |
| Diluted EPS | $2.37 | $1.65 | +43.6% |
| Share Repurchase | $385 million | $128.4 million | +200.3% |
In summary, the overall market impact and investor sentiment reflect a robust position for the company, supported by positive earnings growth and strategic initiatives that enhance investor confidence.
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Resources:
- EPAM Systems, Inc. (EPAM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of EPAM Systems, Inc. (EPAM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View EPAM Systems, Inc. (EPAM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.