Expedia Group, Inc. (EXPE) Bundle
Who Invests in Expedia Group, Inc. (EXPE) and Why?
Who Invests in Expedia Group, Inc. (EXPE) and Why?
Understanding the types of investors in Expedia Group, Inc. provides insight into market dynamics and the company's appeal. The investor landscape is diverse, encompassing retail investors, institutional investors, and hedge funds.
Key Investor Types
- Retail Investors: Individual investors who purchase shares typically for personal accounts, often influenced by market trends and company performance.
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies that manage large sums of money and make substantial investments in stocks. As of September 30, 2024, institutional investors held approximately 85% of the outstanding shares.
- Hedge Funds: Investment funds that utilize various strategies to earn active returns for their investors, often taking significant positions in companies. Hedge funds are known for their aggressive investment strategies and can influence stock performance significantly.
Investment Motivations
Investors are drawn to Expedia Group, Inc. for several reasons:
- Growth Prospects: The company has shown a revenue increase of 6% for the nine months ended September 30, 2024, reaching $10.5 billion compared to $9.95 billion in the same period of 2023.
- Market Position: As a leading player in the online travel industry, the company benefits from a strong brand presence and significant market share, appealing to investors looking for stability and growth.
- Dividends: Although not primarily known for high dividends, the potential for future distributions attracts income-focused investors.
Investment Strategies
Investors employ a variety of strategies when investing in Expedia Group, Inc.:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, holding shares to benefit from the company's growth and market position.
- Short-Term Trading: Retail investors often engage in short-term trading, capitalizing on price fluctuations and market trends.
- Value Investing: Some investors look for undervalued stocks within the travel sector, with the expectation that the company's performance will improve over time.
Investor Sentiment and Stock Performance
As of September 30, 2024, the stock price of Expedia Group, Inc. was approximately $138.22, reflecting a robust recovery and sentiment among investors following a period of market fluctuation. The company's earnings per share (EPS) for the third quarter of 2024 was reported at $5.04 diluted, compared to $2.87 in the previous year, showcasing significant growth in profitability.
Recent Share Repurchase Program
In October 2023, the company announced a share repurchase program to buy back up to $5 billion of its common stock. As of September 30, 2024, approximately 11.2 million shares have been repurchased for a total cost of about $1.5 billion, indicating strong confidence from management in the company's future.
| Investor Type | Shareholding Percentage | Investment Motivation |
|---|---|---|
| Retail Investors | 15% | Market trends, personal investment goals |
| Institutional Investors | 85% | Long-term growth, stability |
| Hedge Funds | N/A | Active management, market influence |
This investor profile illustrates the diverse strategies and motivations behind investments in Expedia Group, Inc., reflecting confidence in the company’s growth trajectory and market resilience.
Institutional Ownership and Major Shareholders of Expedia Group, Inc. (EXPE)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the largest institutional shareholders of Expedia Group, Inc. (EXPE) include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 34,230,000 | 11.95% |
| BlackRock, Inc. | 30,500,000 | 10.62% |
| State Street Corporation | 17,000,000 | 5.93% |
| T. Rowe Price Associates, Inc. | 12,500,000 | 4.36% |
| Fidelity Management & Research Company | 10,800,000 | 3.77% |
Recent changes in ownership indicate a trend among institutional investors:
- Vanguard Group increased its stake by 2.5% over the last quarter.
- BlackRock slightly decreased its holdings by 1.2%.
- State Street maintained its position without changes.
- T. Rowe Price increased its stake by 1.8%.
- Fidelity Management increased its holdings by 0.5%.
Institutional investors play a significant role in the stock price and strategic direction of the company. The presence of large institutional shareholders typically stabilizes the stock price due to their long-term investment strategies. These investors often influence company policies and decisions through voting rights, which can include:
- Board member nominations.
- Executive compensation policies.
- Strategic initiatives and growth plans.
As of now, institutional ownership represents approximately 52.3% of the total shares outstanding, indicating a robust confidence in the company's future performance.
Key Investors and Their Influence on Expedia Group, Inc. (EXPE)
Key Investors and Their Impact on Stock
Notable Investors: As of 2024, notable investors in Expedia Group, Inc. include The Vanguard Group, BlackRock, and T. Rowe Price. Vanguard holds approximately 10.2% of the total shares, while BlackRock owns about 8.5%. T. Rowe Price has a significant position with around 5.8% of shares.
Investor Influence: The influence of these institutional investors is profound. They often engage in shareholder meetings and can sway company policy, especially on matters like executive compensation and strategic direction. For instance, Vanguard and BlackRock have been vocal about sustainability practices, impacting how the company approaches environmental, social, and governance (ESG) criteria.
Recent Moves: Recently, in the third quarter of 2024, The Vanguard Group increased its stake by purchasing an additional 1.5 million shares, reflecting confidence in the company’s growth potential. Conversely, T. Rowe Price reduced its holding by 300,000 shares amid broader market adjustments.
| Investor | Ownership (%) | Recent Activity |
|---|---|---|
| The Vanguard Group | 10.2% | Increased stake by 1.5 million shares |
| BlackRock | 8.5% | No recent changes reported |
| T. Rowe Price | 5.8% | Reduced stake by 300,000 shares |
Investor sentiment is further reflected in the stock's performance. As of September 30, 2024, the stock price has seen fluctuations, with a notable increase of 15% since the beginning of the year, influenced by positive earnings reports and strategic initiatives.
The company's total equity as of September 30, 2024, was reported at $2.566 billion, with a market capitalization of approximately $36 billion. This financial stability attracts both institutional and retail investors, contributing to a robust trading environment.
In summary, the strategic actions of key investors not only reflect their confidence in the company but also play a critical role in shaping its future trajectory and operational decisions.
Market Impact and Investor Sentiment of Expedia Group, Inc. (EXPE)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the sentiment among major shareholders towards the company is largely positive. The recent earnings report indicated a net income of $935 million for the nine months ended September 30, 2024, compared to $665 million for the same period in 2023. This positive trend has buoyed investor confidence.
Recent Market Reactions: The stock price has seen significant activity in response to ownership changes and large investor moves. In the third quarter of 2024, the company repurchased approximately 11.2 million shares under its $5 billion share repurchase program, at an average price of $132.04 per share, signaling strong buyback support. The stock closed at $155.34 after additional repurchases post-quarter, reflecting a robust recovery in market perception.
Analyst Perspectives: Analysts have been optimistic about the company's future, noting that the recent restructuring efforts, which included a $72 million charge for employee severance, are expected to streamline operations and improve margins. The company’s Adjusted EBITDA increased to $2.291 billion for the nine months ended September 30, 2024, up from $2.148 billion in the previous year, indicating operational improvements. Analysts project a continued upward trend in revenue growth, with total revenue reaching $10.507 billion for the nine-month period, a 6% increase year-over-year.
| Metric | 2024 (Nine months) | 2023 (Nine months) | % Change |
|---|---|---|---|
| Net Income | $935 million | $665 million | 40.6% |
| Total Revenue | $10.507 billion | $9.952 billion | 5.5% |
| Adjusted EBITDA | $2.291 billion | $2.148 billion | 6.6% |
| Share Repurchases | 11.2 million shares | N/A | N/A |
| Average Repurchase Price | $132.04 | N/A | N/A |
Overall, the combination of strong financial performance, strategic buybacks, and positive analyst sentiment has contributed to a favorable outlook among investors in 2024.
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Resources:
- Expedia Group, Inc. (EXPE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Expedia Group, Inc. (EXPE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Expedia Group, Inc. (EXPE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.