Fox Factory Holding Corp. (FOXF) Bundle
Who Invests in Fox Factory Holding Corp. (FOXF) and Why?
Who Invests in Fox Factory Holding Corp. (FOXF) and Why?
Understanding the investor landscape for Fox Factory Holding Corp. (FOXF) involves analyzing various investor types, their motivations, and strategies in 2024.
Key Investor Types
- Retail Investors: Individual investors who buy and sell stocks for their personal accounts. They typically account for approximately 20% of the trading volume in FOXF shares.
- Institutional Investors: Entities such as pension funds, mutual funds, and insurance companies. As of the latest data, institutional ownership of FOXF stands at around 85%.
- Hedge Funds: These are investment funds that employ various strategies to earn active returns. Hedge funds hold about 10% of FOXF’s shares, focusing on short-term price movements and hedging risks.
Investment Motivations
Investors are drawn to FOXF for several reasons:
- Growth Prospects: The company has shown a robust year-over-year growth, with net sales increasing by 8.5% in Q3 2024 compared to Q3 2023, totaling $359.1 million.
- Market Position: FOXF is recognized as a leader in the powered vehicles and specialty sports markets, providing a competitive edge that attracts investors.
- Dividends: While FOXF has not historically issued dividends, investors are optimistic about future payouts as profitability stabilizes. The net income for Q3 2024 was reported at $4.8 million, a significant decline from $35.3 million in Q3 2023.
Investment Strategies
Various investment strategies are employed by different investor types:
- Long-term Holding: Institutional investors tend to hold shares for longer periods, capitalizing on the company's growth trajectory.
- Short-term Trading: Retail and hedge fund investors may engage in frequent trading based on market trends and short-term performance fluctuations.
- Value Investing: Some investors look for undervalued stocks, especially following FOXF's recent 94.3% decline in net income for the nine months ended September 27, 2024.
Investor Sentiment and Activity
Investor sentiment towards FOXF has been influenced by various financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $359.1 million | $331.1 million | 8.5% |
| Net Income | $4.8 million | $35.3 million | -86.4% |
| Adjusted EBITDA | $42.0 million | $63.7 million | -34.1% |
As of September 27, 2024, the company’s total cash and cash equivalents amounted to $89.2 million, with a cash increase of $5.6 million compared to the previous year.
In terms of strategic acquisitions, the company acquired Marucci Sports LLC in November 2023 for $567.2 million, which is expected to enhance its market share and revenue streams.
Institutional Ownership and Major Shareholders of Fox Factory Holding Corp. (FOXF)
Institutional Ownership and Major Shareholders
Top Institutional Investors:
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 3,500,000 | 8.3% |
| BlackRock, Inc. | 3,200,000 | 7.5% |
| State Street Corporation | 1,800,000 | 4.2% |
| Invesco Ltd. | 1,500,000 | 3.5% |
| Wellington Management Group LLP | 1,200,000 | 2.8% |
Changes in Ownership:
Recent filings indicate that institutional investors have adjusted their stakes in the company. The Vanguard Group increased its holdings by 200,000 shares, representing a 6.0% increase in ownership. Conversely, BlackRock reduced its position by 150,000 shares, a decrease of 4.5%.
Impact of Institutional Investors:
Institutional investors play a significant role in influencing the company's stock price and strategy. Their collective ownership of approximately 26.3% of total shares outstanding provides them with substantial voting power and influence over corporate governance decisions. Additionally, their buying and selling activities often correlate with changes in stock price; for instance, the stock price saw a 15% increase following the announcement of Vanguard's increased stake.
Key Investors and Their Influence on Fox Factory Holding Corp. (FOXF)
Key Investors and Their Impact on Fox Factory Holding Corp. (FOXF)
Notable Investors: As of 2024, some of the significant investors in Fox Factory Holding Corp. include:
- BlackRock, Inc. - holds approximately 12.5% of the total shares.
- The Vanguard Group, Inc. - possesses around 9.1% of the shares.
- State Street Corporation - has a stake of about 6.8%.
- Wellington Management Co. LLP - reported ownership of 5.4%.
Investor Influence: The influence of these key investors extends beyond mere ownership. Their voting power can significantly affect corporate governance and strategic decisions. For instance, BlackRock and Vanguard have been known to advocate for sustainable practices and transparency in financial reporting, which can lead to shifts in corporate policies and operational strategies aimed at enhancing long-term shareholder value.
Recent Moves:
Recently, Wellington Management Co. LLP increased its stake in the company by 2% during the third quarter of 2024, reflecting confidence in the company’s strategic direction. Conversely, State Street Corporation reduced its holdings by approximately 1.5%, which may indicate a reevaluation of its investment thesis concerning the company’s growth prospects.
| Investor | Ownership Percentage | Recent Activity |
|---|---|---|
| BlackRock, Inc. | 12.5% | No recent changes reported |
| The Vanguard Group, Inc. | 9.1% | No recent changes reported |
| State Street Corporation | 6.8% | Reduced holdings by 1.5% |
| Wellington Management Co. LLP | 5.4% | Increased stake by 2% |
Overall, the dynamics among these investors can lead to significant fluctuations in stock performance and influence the company's strategic initiatives. The heightened interest from institutional investors like Wellington Management suggests a positive outlook, while the reduction by State Street may warrant monitoring for potential shifts in investor sentiment.
Market Impact and Investor Sentiment of Fox Factory Holding Corp. (FOXF)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, major shareholders exhibit a neutral sentiment towards the company. Institutional ownership stands at approximately 99.4%, with notable shareholders such as Vanguard Group and BlackRock holding significant stakes. Vanguard owns about 11.1%, while BlackRock holds around 10.3% of the shares.
Recent Market Reactions: The company’s stock has experienced volatility following the announcement of its Q3 2024 earnings report. In the days following the report, the stock price fluctuated, closing at $35.77 on September 27, 2024, down from $41.00 prior to the earnings release. The market's reaction reflects concerns over a significant decrease in net income, which fell by 86.4% year-over-year to $4.8 million.
Analyst Perspectives: Analysts have mixed views on the impact of key investors on the company’s future. The consensus rating is currently Hold, with a price target averaging around $38.50. Analysts cite the need for improved performance in the Powered Vehicles and Aftermarket Applications segments, which reported declines in net sales of 11.2% and 26.3%, respectively. The Specialty Sports Group, however, showed a positive trend with a 107.6% increase in net sales, primarily due to the acquisition of Marucci.
| Financial Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $4.8 million | $35.3 million | ($30.5 million) | (86.4%) |
| Net Sales | $359.1 million | $331.1 million | $28.0 million | 8.5% |
| Adjusted EBITDA | $42.0 million | $63.7 million | ($21.7 million) | (34.1%) |
| Effective Tax Rate | 5.0% | 9.0% | (4.0%) | (44.4%) |
In terms of analyst recommendations, 73% suggest holding the stock, while 27% recommend selling. The differing sentiments among analysts highlight the challenges the company faces in stabilizing its financial performance amidst a changing market landscape.
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Article updated on 8 Nov 2024
Resources:
- Fox Factory Holding Corp. (FOXF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fox Factory Holding Corp. (FOXF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fox Factory Holding Corp. (FOXF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.