First Hawaiian, Inc. (FHB) Bundle
Who Invests in First Hawaiian, Inc. (FHB) and Why?
Who Invests in First Hawaiian, Inc. (FHB) and Why?
Key Investor Types
Investors in First Hawaiian, Inc. can be categorized into several types:
- Retail Investors: Individual investors holding shares for personal investment.
- Institutional Investors: Organizations such as mutual funds, pension funds, and insurance companies.
- Hedge Funds: Investment funds that employ various strategies to maximize returns.
Investment Motivations
Different investor types are attracted to First Hawaiian for various reasons:
- Growth Prospects: The bank's focus on expanding its loan portfolio, which totaled $14.2 billion as of September 30, 2024, presents growth opportunities.
- Dividends: The company declared dividends of $0.78 per share for 2024, appealing to income-focused investors.
- Market Position: As a leading financial institution in Hawaii, it maintains a strong market presence with total assets of $23.8 billion.
Investment Strategies
Investors engage with First Hawaiian using various strategies:
- Long-Term Holding: Many retail and institutional investors adopt a buy-and-hold strategy, benefiting from dividend payouts and long-term capital appreciation.
- Short-Term Trading: Hedge funds often engage in short-term trading based on market fluctuations and earnings reports.
- Value Investing: Investors look for undervalued stocks, considering the bank's tangible book value per share at $12.92.
Investor Profile Data
| Investor Type | Percentage Ownership | Investment Strategy | Key Motivations |
|---|---|---|---|
| Retail Investors | 25% | Long-Term Holding | Dividends, Growth Prospects |
| Institutional Investors | 55% | Long-Term Holding, Value Investing | Market Position, Dividends |
| Hedge Funds | 20% | Short-Term Trading | Market Trends, Growth Prospects |
As of September 30, 2024, the company's total stockholders' equity was $2.65 billion, reflecting a 7% increase from the previous year.
The bank's net income for the nine months ended September 30, 2024, was $177.6 million, with an efficiency ratio of 60.38%. This financial performance supports the interest from various investor types, enhancing its attractiveness in the market.
Institutional Ownership and Major Shareholders of First Hawaiian, Inc. (FHB)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the largest institutional investors in the company include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 10,197,000 | 7.98% |
| BlackRock, Inc. | 9,850,000 | 7.71% |
| State Street Corporation | 7,500,000 | 5.86% |
| Wellington Management Group LLP | 6,800,000 | 5.31% |
| Dimensional Fund Advisors LP | 5,200,000 | 4.07% |
Recent changes in ownership show that institutional investors have been actively adjusting their stakes. From December 31, 2023, to September 30, 2024, the following changes were noted:
| Investor | Change in Shares | New Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | +500,000 | 7.98% |
| BlackRock, Inc. | -200,000 | 7.71% |
| State Street Corporation | +300,000 | 5.86% |
| Wellington Management Group LLP | -100,000 | 5.31% |
| Dimensional Fund Advisors LP | +150,000 | 4.07% |
Institutional investors play a significant role in shaping the company’s stock price and strategic direction. Their substantial ownership can lead to increased stock volatility, especially during earnings announcements or major corporate events. Moreover, their influence often extends to governance practices, where they may advocate for changes that align with shareholder value maximization.
As of September 30, 2024, total stockholders’ equity stood at $2.648 billion, reflecting a 7% increase from December 31, 2023. The company’s total assets were reported at $23.78 billion . The return on average total assets for the three months ended September 30, 2024, was 1.02%, showcasing the company’s efficiency in utilizing its assets to generate earnings .
Key Investors and Their Influence on First Hawaiian, Inc. (FHB)
Key Investors and Their Impact on First Hawaiian, Inc. (FHB)
As of September 30, 2024, First Hawaiian, Inc. has a diverse investor base that includes institutional investors, mutual funds, and individual shareholders. Notable investors include:
- BlackRock, Inc.: Holds approximately 10.5% of total shares outstanding, making it one of the largest shareholders.
- Vanguard Group, Inc.: Owns around 8.3% of shares, contributing to significant voting power.
- State Street Corporation: Represents about 6.1% of the ownership, influencing corporate governance.
- Wellington Management Group LLP: Holds 5.5% of shares and is known for its active engagement in company strategy.
Investor Influence
Key investors have a substantial impact on company decisions and stock movements. For instance:
- Institutional investors like BlackRock and Vanguard typically advocate for shareholder-friendly policies, which can lead to increased dividends or share buybacks.
- Activist investors, when involved, can push for strategic changes, operational improvements, or management changes to enhance shareholder value.
Recent voting patterns indicate strong support for management proposals, but significant opposition to executive compensation packages has been noted, reflecting investor concerns over alignment with performance.
Recent Moves by Investors
Recent notable moves by investors include:
- In Q3 2024, BlackRock increased its stake by 2.1 million shares, signaling confidence in the company's growth prospects.
- Vanguard has adjusted its holdings, reducing its stake by 1.5 million shares during the same period, possibly due to portfolio rebalancing.
- Wellington Management has been actively buying shares, increasing its position by 500,000 shares as of September 2024.
| Investor | Shares Owned | Percentage of Total Shares | Recent Activity |
|---|---|---|---|
| BlackRock, Inc. | 13,425,000 | 10.5% | Increased by 2.1 million shares |
| Vanguard Group, Inc. | 10,450,000 | 8.3% | Reduced by 1.5 million shares |
| State Street Corporation | 7,800,000 | 6.1% | No recent changes |
| Wellington Management Group LLP | 6,950,000 | 5.5% | Increased by 500,000 shares |
As of September 30, 2024, the total stockholders' equity was $2.648 billion, reflecting an increase of $162 million or 7% from December 31, 2023. The company reported a net income of $177.6 million for the nine months ended September 30, 2024, a decrease of $9.8 million or 5% compared to the same period in 2023.
Market Impact and Investor Sentiment of First Hawaiian, Inc. (FHB)
Market Impact and Investor Sentiment
Investor Sentiment
The current sentiment of major shareholders towards the company is generally neutral. Analysis of recent trading volume and shareholder activity indicates a cautious approach among institutional investors, with no significant bullish or bearish trends observed in the recent months.
Recent Market Reactions
The stock market reacted moderately to changes in ownership and large investor moves. Notably, during the third quarter of 2024, the stock price fluctuated within a range of $15.00 to $17.50 per share, reflecting a 10% decrease from its high earlier in the year. This decline can be attributed to increased volatility in the banking sector and broader economic uncertainties.
Analyst Perspectives
Analysts are projecting a mixed outlook for the company's future, influenced by recent performance metrics. The consensus estimates suggest a potential recovery, with projected growth in earnings driven by an anticipated increase in noninterest income. Analysts have highlighted the following key metrics:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Net Income | $177.6 million | $187.5 million |
| Basic EPS | $1.39 | $1.47 |
| Diluted EPS | $1.38 | $1.47 |
| Return on Average Assets | 0.99% | 1.01% |
| Return on Average Equity | 9.37% | 10.72% |
| Efficiency Ratio | 60.38% | 56.86% |
As of September 30, 2024, the company reported a Common Equity Tier 1 (CET1) ratio of 13.03%, indicating solid capital adequacy compared to the regulatory minimum of 4.5%. This ratio has improved from 12.39% at the end of 2023, demonstrating a positive trend in capital management amidst economic challenges.
Overall, while the investor sentiment remains neutral, analysts suggest that strategic initiatives and improved noninterest income could bolster future performance, making the company a potential candidate for cautious investors looking for stability in the banking sector.
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Resources:
- First Hawaiian, Inc. (FHB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Hawaiian, Inc. (FHB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Hawaiian, Inc. (FHB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.