Expeditors International of Washington, Inc. (EXPD) Bundle
Who Invests in Expeditors International of Washington, Inc. (EXPD) and Why?
Who Invests in Expeditors International of Washington, Inc. (EXPD) and Why?
Understanding the investor profile of Expeditors International of Washington, Inc. involves exploring various types of investors, their motivations, and the strategies they employ.
Key Investor Types
- Retail Investors: Individual investors who purchase shares for personal investment.
- Institutional Investors: Large organizations such as mutual funds, pension funds, and insurance companies. As of September 30, 2024, institutional ownership was approximately 85%.
- Hedge Funds: Investment funds that use various strategies to earn active returns for their investors. Hedge funds accounted for about 12% of total ownership.
Investment Motivations
Investors are attracted to Expeditors for several reasons:
- Growth Prospects: The company reported revenues of $7.645 billion for the nine months ended September 30, 2024, indicating robust growth potential.
- Dividends: The company declared a semi-annual dividend of $0.73 per share in May 2024, up from $0.69 in May 2023.
- Market Position: Expeditors maintains a strong presence in the logistics and freight forwarding industry, operating in over 60 countries.
Investment Strategies
Investors typically employ various strategies when investing in Expeditors:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, capitalizing on the company's steady growth and dividend payments.
- Short-Term Trading: Retail investors may engage in short-term trading, taking advantage of market fluctuations. The stock price as of October 30, 2024, was around $119.21.
- Value Investing: Some investors focus on the fundamental value of the company, looking at metrics like the price-to-earnings ratio, which was approximately 29.42 for the trailing twelve months as of September 30, 2024.
Investor Composition Table
| Investor Type | Percentage Ownership | Investment Motivation |
|---|---|---|
| Retail Investors | 15% | Personal investment growth |
| Institutional Investors | 85% | Long-term stability and dividends |
| Hedge Funds | 12% | Active returns through diverse strategies |
As of September 30, 2024, the company reported net earnings attributable to shareholders of $229.574 million, reflecting a growth of 34% compared to the same period in 2023. The effective income tax rate for the company was 26.4% during this period.
Investors are also motivated by the company's consistent performance in the logistics sector, as evidenced by a reported operating income of $740.219 million for the nine months ended September 30, 2024.
Institutional Ownership and Major Shareholders of Expeditors International of Washington, Inc. (EXPD)
Institutional Ownership and Major Shareholders
As of 2024, the largest institutional investors in the company include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 8,700,000 | 11.2% |
| The Vanguard Group, Inc. | 8,400,000 | 10.9% |
| Wellington Management Group LLP | 6,500,000 | 8.4% |
| State Street Corporation | 5,200,000 | 6.8% |
| Fidelity Management & Research Company | 4,800,000 | 6.2% |
Recent changes in ownership indicate that institutional investors have generally increased their stakes. For instance, the percentage held by BlackRock increased by 1.5% over the past year, while Vanguard's holdings saw a rise of 0.8%.
Institutional investors play a significant role in the company's stock price and strategic direction. Their substantial holdings often influence market perceptions and can lead to increased volatility in the stock price based on buying or selling pressure. Additionally, these investors typically engage in active dialogue with management, providing insights that can shape the company's operational strategies and long-term planning.
As of September 30, 2024, the company's total shares outstanding are approximately 77,600,000.
Key Investors and Their Influence on Expeditors International of Washington, Inc. (EXPD)
Key Investors and Their Impact on Stock
As of 2024, several notable investors have taken key positions in the company, influencing its strategic direction and stock performance. Prominent among these are major institutional investors such as Vanguard Group and BlackRock, which are known for their significant holdings in publicly traded companies.
Notable Investors
- Vanguard Group: Holds approximately 10.5% of the total shares outstanding.
- BlackRock: Owns around 9.8% of the company’s shares.
- State Street Corporation: Accounts for about 5.7% of the total shares.
- Wellington Management: Has a stake of approximately 4.2%.
Investor Influence
These institutional investors play a crucial role in shaping company policies and governance. Their voting power can significantly influence decisions regarding executive compensation, mergers and acquisitions, and overall strategic initiatives. For example, the presence of activist investors can lead to changes in management or strategic shifts aimed at enhancing shareholder value.
Recent Moves
In recent months, there have been notable movements among these investors:
- Vanguard Group: Increased its holdings by 1.2 million shares in the last quarter of 2023.
- BlackRock: Recently sold 500,000 shares, reducing its stake but remains a significant shareholder.
- State Street Corporation: Acquired an additional 750,000 shares recently, indicating confidence in the company's future prospects.
- Wellington Management: Maintained its position without significant changes.
Impact on Stock Performance
The activities of these investors have a direct impact on the stock's performance. For instance, the increase in holdings by Vanguard and State Street has positively correlated with stock price movements, reflecting investor confidence. The stock performance has seen fluctuations in response to these institutional moves, especially during earnings announcements and market volatility.
| Investor | Percentage Ownership | Recent Share Activity |
|---|---|---|
| Vanguard Group | 10.5% | Increased by 1.2 million shares |
| BlackRock | 9.8% | Sold 500,000 shares |
| State Street Corporation | 5.7% | Acquired 750,000 shares |
| Wellington Management | 4.2% | No significant changes |
As these investors continue to adjust their positions, their influence on the company's strategic decisions and stock performance remains a critical factor for other investors to consider.
Market Impact and Investor Sentiment of Expeditors International of Washington, Inc. (EXPD)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the current sentiment among major shareholders remains positive. The company has shown consistent growth in earnings and revenue, resulting in a favorable outlook from institutional investors.
Recent Market Reactions: The stock market has reacted positively to significant ownership changes and large investor moves. For instance, during the third quarter of 2024, net earnings attributable to shareholders increased by 34% compared to the previous year, which influenced stock prices positively. The company repurchased $140 million in common stock during this period, reflecting management's confidence in future growth and enhancing shareholder value.
Analyst Perspectives: Analysts have noted that key investors are likely to impact the company’s future positively due to its robust operational performance. The operating income for the third quarter of 2024 increased by 40% from the same period in 2023, driven by strong demand and improved pricing strategies. Analysts predict continued growth, particularly in the airfreight and ocean services sectors.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Earnings | $229,926,000 | $170,843,000 | 34% |
| Operating Income | $301,524,000 | $216,069,000 | 40% |
| Cash from Operations | $90,000,000 | $190,000,000 | -52.6% |
| Common Stock Repurchases | $140,000,000 | $298,103,000 | -53% |
The company's identifiable assets at the end of September 2024 were reported at $5,170,917,000, which demonstrates strong asset management and growth potential. Equity also showed a healthy position at $2,359,170,000, indicating solid financial stability.
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Resources:
- Expeditors International of Washington, Inc. (EXPD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Expeditors International of Washington, Inc. (EXPD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Expeditors International of Washington, Inc. (EXPD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.