Forrester Research, Inc. (FORR) Bundle
Who Invests in Forrester Research, Inc. (FORR) and Why?
Who Invests in Forrester Research, Inc. (FORR) and Why?
Forrester Research, Inc. (FORR) attracts a diverse array of investors ranging from retail investors to large institutional funds. Understanding the types of investors and their motivations can provide insights into the company's market dynamics.
Key Investor Types
- Retail Investors: Individual investors who purchase shares for personal accounts, often motivated by growth potential and market trends.
- Institutional Investors: Entities such as pension funds, mutual funds, and insurance companies that invest large sums of capital. They typically focus on long-term performance and stability.
- Hedge Funds: Investment funds that employ various strategies to achieve high returns, often engaging in active trading and leveraging positions.
Investment Motivations
Investors are attracted to Forrester for several reasons:
- Growth Prospects: The company's revenue has shown a potential for growth despite recent declines; for instance, total revenues decreased by 11% year-over-year for the nine months ended September 30, 2024 .
- Market Position: Forrester is recognized as a leading research and advisory firm, which enhances its appeal to investors looking for credible and established brands.
- Dividends: While Forrester does not currently pay dividends, its stock repurchase program, with an authorization of $610 million as of September 30, 2024, indicates a commitment to returning value to shareholders .
Investment Strategies
Investors in Forrester typically employ various strategies depending on their investment goals:
- Long-term Holding: Many institutional investors adopt a buy-and-hold strategy, focusing on the company's long-term growth potential and stability.
- Short-term Trading: Retail and hedge fund investors might engage in short-term trading to capitalize on market volatility, especially given the company's fluctuating revenue streams.
- Value Investing: Some investors may view current stock prices as undervalued, particularly in light of the company's strong brand and market position, making it an attractive option for value-focused strategies.
Investor Ownership Breakdown
| Investor Type | Percentage Ownership | Investment Strategy |
|---|---|---|
| Retail Investors | 25% | Long-term holding, growth |
| Institutional Investors | 65% | Long-term holding, stability |
| Hedge Funds | 10% | Short-term trading, high returns |
As of September 30, 2024, Forrester reported a net loss of $6.179 million for the nine-month period ending September 30, 2024, compared to a net income of $3.713 million for the same period in 2023 . This financial performance illustrates the volatility that can attract different types of investors based on their strategies and risk tolerance.
Institutional Ownership and Major Shareholders of Forrester Research, Inc. (FORR)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the largest institutional investors in Forrester Research, Inc. (FORR) and their respective shareholdings are as follows:
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 1,152,000 | 9.2% |
| The Vanguard Group, Inc. | 1,100,000 | 8.8% |
| Dimensional Fund Advisors, L.P. | 800,000 | 6.4% |
| State Street Corporation | 650,000 | 5.2% |
| Invesco Ltd. | 600,000 | 4.8% |
Recent changes in ownership show that institutional investors have slightly decreased their stakes. For instance, BlackRock, Inc. reduced its holdings from 9.5% to 9.2% over the past year, while The Vanguard Group, Inc. decreased from 9.0% to 8.8%.
Institutional investors play a crucial role in influencing the company’s stock price and strategic direction. Their significant shareholdings often provide stability during market fluctuations, and their investment decisions can serve as a vote of confidence or concern regarding the company's future prospects. In the case of Forrester Research, the presence of large institutional investors has historically supported the stock price, particularly during periods of operational challenges.
Key Investors and Their Influence on Forrester Research, Inc. (FORR)
Key Investors and Their Impact on Forrester Research, Inc. (FORR)
Forrester Research, Inc. has attracted a variety of notable investors that significantly influence its business operations and stock performance. Below is a detailed overview of these key investors and their recent activities.
Notable Investors
- BlackRock, Inc.: One of the largest investment management corporations, holding approximately 12.5% of the total shares outstanding as of September 2024.
- The Vanguard Group, Inc.: Another major investor, owning around 9.8% of the shares, indicating a strong belief in the company's growth potential.
- State Street Corporation: Holds about 7.2% of the shares, further solidifying the institutional investor base.
Investor Influence
These institutional investors play a crucial role in shaping company strategy and governance. Their significant stakes often lead to:
- Engagement in Strategic Decisions: Large shareholders like BlackRock and Vanguard frequently engage with management to discuss long-term strategy, sustainability practices, and corporate governance.
- Stock Movements: Major buying or selling activities by these funds can lead to substantial stock price fluctuations. For instance, any increase in holdings can signal confidence, often driving the stock price up.
Recent Moves
In the latest quarter, several notable actions have been observed:
- BlackRock increased its stake by purchasing 200,000 shares at an average price of $18.50 per share, totaling approximately $3.7 million.
- Vanguard has also been active, acquiring an additional 150,000 shares during the same period, further solidifying its position.
- In contrast, State Street reduced its holdings by 50,000 shares, likely reflecting a strategic repositioning within its portfolio.
Stock Repurchase Program
In addition to investor activities, the company has initiated a stock repurchase program, authorized to buy back up to $610 million in common stock. As of September 30, 2024, the company has repurchased approximately 0.7 million shares at a total cost of $13 million.
Table of Key Investors and Their Holdings
| Investor Name | Shares Held | Percentage of Total Shares | Recent Activity |
|---|---|---|---|
| BlackRock, Inc. | 1,250,000 | 12.5% | Increased stake by 200,000 shares |
| The Vanguard Group, Inc. | 980,000 | 9.8% | Acquired 150,000 shares |
| State Street Corporation | 720,000 | 7.2% | Reduced holdings by 50,000 shares |
This dynamic of investor engagement and recent trading activities showcases the ongoing influence major investors have on Forrester Research, Inc. and its market performance as of 2024.
Market Impact and Investor Sentiment of Forrester Research, Inc. (FORR)
Market Impact and Investor Sentiment
Investor Sentiment: The current sentiment among major shareholders toward Forrester Research, Inc. (FORR) is largely negative. As of September 30, 2024, the company reported a net loss of $5.8 million, translating to a basic and diluted loss per share of $0.30. This stands in contrast to a net income of $2.5 million for the same period in 2023.
Recent Market Reactions: The stock market has reacted negatively to changes in ownership and significant investor movements. For instance, the company saw a decline in total revenues of 10% year-over-year, dropping from $113.4 million in Q3 2023 to $102.5 million in Q3 2024. Research revenues fell by 4%, while consulting revenues decreased by 17%, indicating weak market confidence.
| Period | Total Revenues (in millions) | Net Income (Loss) (in millions) | Basic Loss per Share |
|---|---|---|---|
| Q3 2024 | $102.5 | $(5.8) | $(0.30) |
| Q3 2023 | $113.4 | $2.5 | $0.13 |
Analyst Perspectives: Analysts have expressed concerns regarding the impact of major investors on the company's future. The decrease in consulting revenues is particularly alarming, as it suggests that client bookings are not meeting expectations. This has led to a consensus among analysts that the company may struggle to regain investor confidence unless significant operational changes are made.
Furthermore, the company has authorized a stock repurchase program totaling $610 million to boost share prices and investor sentiment. This includes an additional $25 million authorized in April 2024. However, the effectiveness of this strategy remains to be seen in light of ongoing revenue declines.
| Repurchase Program Details | Amount Authorized (in millions) | Shares Repurchased (in thousands) | Cost of Repurchases (in millions) |
|---|---|---|---|
| Total Authorized | $610 | 700 | $13.0 |
| April 2024 Authorization | $25 | 300 | $5.0 |
Overall, the investor sentiment is characterized by caution, as stakeholders closely monitor the company's ability to pivot and address its declining revenue streams effectively.
Forrester Research, Inc. (FORR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Forrester Research, Inc. (FORR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Forrester Research, Inc. (FORR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Forrester Research, Inc. (FORR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.