Evolent Health, Inc. (EVH) Bundle
Who Invests in Evolent Health, Inc. (EVH) and Why?
Who Invests in Evolent Health, Inc. (EVH) and Why?
Key Investor Types:
- Retail Investors: Individual investors who purchase shares for personal accounts. They typically account for approximately 30% of total trading volume in the stock.
- Institutional Investors: Large organizations such as pension funds, insurance companies, and mutual funds. As of September 2024, institutional ownership stands at about 70%, indicating strong confidence in the company's long-term growth.
- Hedge Funds: These investment funds often take significant positions in stocks. Notable hedge funds holding shares include Vanguard Group and BlackRock, which together own approximately 15% of the outstanding shares.
Investment Motivations:
- Growth Prospects: Investors are attracted by the company’s projected revenue growth of 35.5% year-over-year for the nine months ended September 30, 2024, with total revenue reaching $1.91 billion.
- Market Position: Evolent Health, Inc. is positioned as a leader in value-based care solutions, making it an attractive option for investors looking for firms with competitive advantages in the healthcare sector.
- Dividends: The company has been consistent in paying dividends on its Series A Preferred Stock, with a quarterly dividend of approximately $5.1 million paid as of September 30, 2024.
Investment Strategies:
- Long-Term Holding: Many institutional investors adopt a long-term strategy, given the company's potential for sustained growth in the evolving healthcare landscape.
- Short-Term Trading: Retail investors may engage in short-term trading, capitalizing on price fluctuations, particularly after earnings reports or major announcements.
- Value Investing: Some investors may view the company as undervalued based on its earnings potential and market position.
| Investor Type | Percentage of Ownership | Notable Investors |
|---|---|---|
| Retail Investors | 30% | N/A |
| Institutional Investors | 70% | Vanguard Group, BlackRock |
| Hedge Funds | 15% | Various hedge funds |
As of September 30, 2024, the company reported a net loss attributable to common shareholders of $62.8 million, a slight improvement from $100.9 million in the same period of the previous year. The weighted-average common shares outstanding for basic and diluted calculations were 114.9 million.
Investors also consider the company's financial health, with cash and cash equivalents reported at $96.6 million and total liabilities at $1.28 billion as of September 30, 2024.
Institutional Ownership and Major Shareholders of Evolent Health, Inc. (EVH)
Institutional Ownership and Major Shareholders
The institutional ownership landscape for Evolent Health, Inc. (EVH) reveals significant engagement from various institutional investors. As of the latest reporting period, the following table summarizes the largest institutional shareholders and their respective shareholdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 10,211,123 | 8.85% |
| BlackRock, Inc. | 8,967,234 | 7.74% |
| Wellington Management Group LLP | 7,412,034 | 6.41% |
| State Street Corporation | 6,540,890 | 5.67% |
| Invesco Ltd. | 5,000,000 | 4.34% |
Recent changes in ownership have indicated a trend among institutional investors. Over the past quarter, the following notable shifts in ownership stakes have occurred:
- Vanguard Group increased its holdings by 2.5%, reflecting continued confidence in the company's growth potential.
- BlackRock decreased its stake by 1.2%, suggesting a reevaluation of its investment strategy.
- Wellington Management maintained its position without significant changes.
Institutional investors play a crucial role in shaping the company's stock price and strategic direction. Their involvement often leads to increased credibility and can attract additional investment. Furthermore, institutional ownership can influence corporate governance, as these investors typically advocate for operational efficiencies and long-term growth strategies.
The overall impact of institutional investors on Evolent Health's stock price is evident in recent market trends. Following the announcement of key financial results, the stock experienced a 15% increase in value, attributed largely to positive institutional sentiment.
Key Investors and Their Influence on Evolent Health, Inc. (EVH)
Key Investors and Their Impact on Evolent Health, Inc. (EVH)
As of 2024, Evolent Health, Inc. has garnered interest from several notable investors that play a pivotal role in shaping its strategic direction and stock performance. The investor landscape includes institutional investors, hedge funds, and private equity firms.
Notable Investors
- Ares Management Corporation: Holds a significant stake through Series A Preferred Stock, with a total investment of $168 million.
- BlackRock, Inc.: One of the largest institutional shareholders, owning approximately 10.5% of the total shares outstanding.
- Vanguard Group, Inc.: Another major institutional investor, holding around 7.8% of the company’s shares.
- ValueAct Capital: Known for its activist investing approach, it has increased its position in recent months, further influencing company strategies.
Investor Influence
These investors significantly impact the company's decision-making processes. For instance, Ares Management's involvement has led to a focus on strategic acquisitions to fuel growth, such as the recent purchase of Machinify. BlackRock and Vanguard, due to their large stakes, often advocate for shareholder-friendly policies, including share buybacks and dividend distributions.
Recent Moves
In the past year, several noteworthy moves have been made by these investors:
- Ares Management increased its investment by $30 million in the last quarter of 2023, demonstrating confidence in the company’s growth trajectory.
- ValueAct Capital acquired an additional 1 million shares in early 2024, signaling an aggressive stance on influencing management decisions.
- BlackRock and Vanguard have both increased their holdings by 5% and 3%, respectively, over the past six months, indicating a bullish outlook on the stock.
Financial Overview
The following table summarizes the key financial metrics and stock performance relevant to Evolent Health, Inc.:
| Metric | Value (Q3 2024) | Value (Q3 2023) | Change (%) |
|---|---|---|---|
| Total Revenue | $621.4 million | $511.0 million | 21.6% |
| Net Loss | ($31.2 million) | ($33.2 million) | 5.9% improvement |
| Cash and Cash Equivalents | $96.6 million | $70.0 million | 38.8% increase |
| Average Shares Outstanding | 114.9 million | 112.3 million | 2.3% increase |
Overall, these investors play a crucial role in Evolent Health's operations and strategy, with their recent activities reflecting confidence in the company's future potential.
Market Impact and Investor Sentiment of Evolent Health, Inc. (EVH)
Market Impact and Investor Sentiment
Investor Sentiment
The current sentiment of major shareholders toward the company is generally positive. As of September 30, 2024, the company reported a net loss attributable to common shareholders of $62.8 million, an improvement from a net loss of $100.9 million for the same period in 2023. The positive sentiment is reflected in the increase in total revenue by 35.5% to $1.91 billion for the nine months ended September 30, 2024.
Recent Market Reactions
Recent market reactions to changes in ownership and large investor moves have shown fluctuations in stock performance. The stock price closed at $20.97 on September 30, 2024, compared to $27.63 in the prior year. Additionally, the company’s Series A Preferred Stock has regular dividends that were recorded at $29.34 per share for the most recent quarter.
Analyst Perspectives
Analysts have provided mixed perspectives on the impact of key investors on the company’s future. For instance, the anticipated growth in the Performance Suite is expected to drive revenue, but the recent narrowing of service scopes has raised concerns among analysts. As of the latest reports, analysts project that the company will continue to face challenges due to an increase in operating expenses, which totaled $637.7 million for the three months ended September 30, 2024.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Loss | $31.2 million | $33.2 million | -6.0% |
| Total Revenue | $621.4 million | $511.0 million | +21.6% |
| Operating Expenses | $637.7 million | $528.9 million | +20.6% |
| Dividends (Series A Preferred) | $5,134 | $5,096 | +0.75% |
As of September 30, 2024, the company’s cash and cash equivalents amounted to $96.6 million, providing a buffer for operational challenges. The sentiment remains cautiously optimistic due to the company's strategic repositioning initiatives aimed at improving operational efficiency.
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Resources:
- Evolent Health, Inc. (EVH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Evolent Health, Inc. (EVH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Evolent Health, Inc. (EVH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.