Exploring Keysight Technologies, Inc. (KEYS) Investor Profile: Who’s Buying and Why?

Who Invests in Keysight Technologies, Inc. (KEYS) and Why?

Who Invests in Keysight Technologies, Inc. (KEYS) and Why?

Investment in Keysight Technologies, Inc. (KEYS) comprises various investor types, each with distinct motivations and strategies.

Key Investor Types

• Retail Investors: Individual investors purchasing shares through brokerage accounts. As of July 2024, retail investors held approximately 20% of the total shares outstanding.
• Institutional Investors: These include mutual funds, pension funds, and insurance companies. Institutional ownership was around 80% of total shares, indicating strong confidence in the company’s long-term potential.
• Hedge Funds: These investors typically engage in more aggressive strategies and held about 15% of the total shares. They are drawn to the company’s growth prospects and potential for high returns.

Investment Motivations

Investors are attracted to Keysight Technologies for several reasons:

• Growth Prospects: The company has demonstrated consistent revenue growth, with total revenue reported at $3,692 million for the nine months ended July 31, 2024, although it reflected a 11% decline year-over-year.
• Market Position: Keysight is a leader in electronic design and test solutions, serving critical sectors like aerospace, defense, and communications.
• Acquisitions: Recent acquisitions, such as Riscure Holding B.V. for $78 million and AnaPico AG for $117 million, are expected to bolster growth and expand market share.

Investment Strategies

Investors employ various strategies when investing in Keysight:

• Long-term Holding: Many institutional investors adopt a buy-and-hold strategy, focusing on the company’s strong fundamentals and growth potential.
• Short-term Trading: Some retail investors may engage in short-term trading, capitalizing on market volatility and price fluctuations.
• Value Investing: Investors look for undervalued shares based on financial metrics; the company’s price-to-earnings (P/E) ratio was approximately 34.2 as of July 2024, indicating a premium valuation compared to industry peers.

Recent Financial Highlights

These financial metrics illustrate the company's performance and the dynamics influencing investor interest. Despite a decline in revenue, the increase in net income highlights effective cost management and operational efficiency, making it an attractive option for various investor types in 2024.

Institutional Ownership and Major Shareholders of Keysight Technologies, Inc. (KEYS)

Institutional Ownership and Major Shareholders

As of July 31, 2024, the following are some of the largest institutional investors in the company:

In recent months, institutional ownership has seen some fluctuations. For instance, The Vanguard Group increased its stake by 2.5% in the last quarter, while BlackRock's shareholding decreased by 1.2%.

Changes in Ownership

In the latest quarter, institutional investors have shown varied behavior regarding their stakes in the company:

• Vanguard Group: Increased by 500,000 shares.
• BlackRock: Decreased by 300,000 shares.
• State Street Corporation: Increased by 200,000 shares.
• Invesco Ltd.: No significant changes.
• Fidelity Management: Decreased by 100,000 shares.

Impact of Institutional Investors

Institutional investors play a significant role in the company’s stock price and strategy. They provide liquidity and stability to the stock, impacting its price movements. Their involvement often attracts additional investors, signaling confidence in the company’s long-term prospects.

Furthermore, institutional ownership can influence corporate governance and strategic decisions. For example, with significant stakes, these investors can advocate for changes in management practices or corporate policies that align with their investment strategies.

As of July 31, 2024, the company's market capitalization stands at approximately $20.2 billion, reflecting the influence of these large investors on its overall valuation.

Key Investors and Their Influence on Keysight Technologies, Inc. (KEYS)

Key Investors and Their Impact on Keysight Technologies, Inc. (KEYS)

As of 2024, Keysight Technologies, Inc. has attracted significant investment interest from various prominent investors, including institutional funds and individual stakeholders.

Notable Investors

• Vanguard Group Inc. - A leading institutional investor, holding approximately 8.6% of total shares.
• BlackRock Inc. - Another major institutional investor with about 7.5% of total shares.
• State Street Corporation - Holds approximately 4.3% of total shares.
• Wellington Management - Owns around 5.1% of total shares.
• Invesco Ltd. - Holds a stake of about 3.9% of total shares.

Investor Influence

Investors such as Vanguard and BlackRock are known for their significant influence on corporate governance. Their large stakes allow them to engage actively in shareholder meetings, often pushing for strategic changes that align with shareholder interests.

For instance, these investors may advocate for enhancements in operational efficiencies or changes in executive compensation structures, which can directly impact the company's performance and stock valuation.

Recent Moves

• In February 2024, Wellington Management increased its stake by purchasing an additional 1.2 million shares.
• BlackRock sold approximately 500,000 shares in March 2024, adjusting its position in response to market conditions.
• Vanguard has maintained a consistent position, indicating confidence in the company’s long-term strategy.
• During the second quarter of 2024, Invesco increased its holdings by acquiring 300,000 shares.

Investor Impact Table

Market Impact and Investor Sentiment of Keysight Technologies, Inc. (KEYS)

Market Impact and Investor Sentiment

Investor Sentiment: As of 2024, the current sentiment of major shareholders toward the company is generally neutral. This is reflected in a mixed performance in stock price and revenue, with shareholders watching closely for signs of recovery from recent declines.

Recent Market Reactions: The stock market has reacted to changes in ownership and large investor moves with a notable volatility. Following the recent acquisition of ESI Group for $935 million, the stock experienced fluctuations. The acquisition is expected to have a long-term positive impact, yet the immediate reaction included a 12% decrease in revenue reported for the three months ended July 31, 2024, compared to the previous year.

Analyst Perspectives: Analysts have expressed cautious optimism regarding the influence of key investors on the company's future. The sentiment is bolstered by the company’s strategic investments in high-growth areas such as AI and 5G technologies. Analysts predict that these investments could lead to a recovery in revenue and market position over the next few quarters, despite the current downturn in orders and revenue. The consensus among analysts is a hold rating with an average target price of $175 per share.

The overall market response has been shaped by macroeconomic factors, including inflation and high interest rates, which have led to a cautious investment approach from major shareholders. This environment has contributed to a 20% decline in revenue for the Electronic Industrial Solutions Group segment for the three months ended July 31, 2024.

As the company navigates these challenges, investor sentiment remains pivotal in shaping its strategic direction and operational adjustments. Major shareholders continue to monitor the impact of recent acquisitions and the company's ability to innovate in a competitive landscape.