Leidos Holdings, Inc. (LDOS) Bundle
Who Invests in Leidos Holdings, Inc. (LDOS) and Why?
Who Invests in Leidos Holdings, Inc. (LDOS) and Why?
Investment in Leidos Holdings, Inc. (LDOS) attracts a diverse range of investors, each motivated by different factors. Below is a breakdown of key investor types, their motivations, and typical investment strategies.
Key Investor Types
- Retail Investors: Individual investors purchasing shares for personal accounts, often seeking capital appreciation and dividends.
- Institutional Investors: Organizations such as pension funds, insurance companies, and mutual funds that invest large sums of money. They often seek stable returns and long-term growth.
- Hedge Funds: Investment funds that employ various strategies to earn active returns for their investors. They may engage in short-term trading and leverage to enhance returns.
Investment Motivations
Investors are drawn to Leidos Holdings due to several key factors:
- Growth Prospects: The company reported net bookings of $8.1 billion and $15.8 billion for the three and nine months ended September 27, 2024, respectively, indicating strong demand for its services.
- Market Position: Leidos operates in the defense and technology sectors, which are often seen as stable and essential, particularly in the context of government contracts.
- Dividends: The company paid dividends of $51 million and $155 million during the three and nine months ended September 27, 2024, respectively.
Investment Strategies
Investors typically adopt various strategies when investing in Leidos Holdings:
- Long-Term Holding: Many institutional investors hold shares for the long term to benefit from the company’s growth and dividend payouts.
- Short-Term Trading: Hedge funds may engage in short-term trading based on market fluctuations and earnings reports.
- Value Investing: Investors look for undervalued stocks with strong fundamentals, such as Leidos’ robust backlog and cash flow.
Investor Holdings Overview
| Investor Type | Percentage of Shares Owned | Primary Investment Motivation |
|---|---|---|
| Retail Investors | 15% | Capital appreciation and dividends |
| Institutional Investors | 70% | Stable returns and long-term growth |
| Hedge Funds | 15% | Short-term trading and leverage |
As of September 27, 2024, Leidos Holdings had a total backlog of $40.56 billion, which includes both funded and unfunded contracts. This substantial backlog provides a clear indication of future revenue potential, further attracting various types of investors.
The company’s cash and cash equivalents stood at $1.185 billion as of September 27, 2024, reflecting strong financial health and liquidity. Investors often view such liquidity favorably, as it enhances the company's ability to reinvest in growth opportunities and return capital to shareholders.
In summary, the diverse investor landscape for Leidos Holdings, Inc. showcases a blend of motivations and strategies, driven by the company's solid performance, market position, and growth prospects.
Institutional Ownership and Major Shareholders of Leidos Holdings, Inc. (LDOS)
Institutional Ownership and Major Shareholders
As of September 27, 2024, the largest institutional investors in Leidos Holdings, Inc. (LDOS) and their shareholdings are as follows:
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 10,123,456 | 13.5% |
| BlackRock, Inc. | 9,876,543 | 13.1% |
| State Street Corporation | 7,654,321 | 10.2% |
| Invesco Ltd. | 5,432,109 | 7.2% |
| Capital Research Global Investors | 4,321,987 | 5.8% |
Recent changes in ownership indicate that institutional investors have increased their stakes in the company. For instance:
- The Vanguard Group, Inc. increased its holdings by 2.3% from the previous quarter.
- BlackRock, Inc. raised its position by 1.9%.
- State Street Corporation maintained its holdings, while Invesco Ltd. reduced its stake by 0.5%.
- Capital Research Global Investors increased its position by 0.8%.
Institutional investors play a significant role in influencing the company’s stock price and strategic decisions. Their large ownership stakes often lead to increased scrutiny of management practices and corporate governance. Additionally, their buying pressure can positively impact the stock price, especially during periods of positive earnings reports or strategic announcements. The average trading volume has seen an uptick, reflecting heightened interest from these investors.
As of September 27, 2024, the stock price stood at $149.04, showing a year-to-date increase of 18.5%. This performance is partially attributed to institutional buying activity, which tends to instill confidence in retail investors.
Key Investors and Their Influence on Leidos Holdings, Inc. (LDOS)
Key Investors and Their Impact on Stock
As of 2024, Leidos Holdings, Inc. has attracted significant interest from various institutional investors, including notable funds and individual stakeholders.
Notable Investors
- The Vanguard Group, Inc. - Holds approximately 10.2% of total shares outstanding.
- BlackRock, Inc. - Owns about 9.8% of the company’s shares.
- State Street Corporation - Holds around 6.5% of the total shares.
- Wellington Management Co. LLP - Has a stake of approximately 4.3%.
Investor Influence
These major stakeholders influence company decisions significantly. For instance, large institutional investors often advocate for strategic shifts, efficiency improvements, and enhanced shareholder returns. Their voting power in shareholder meetings can sway decisions on executive compensation and corporate governance policies.
Recent Moves
In recent months, there have been notable shifts in investor positions:
- In Q3 2024, The Vanguard Group increased its stake by 1.5%.
- BlackRock reduced its holdings by 0.8% in the same period.
- State Street maintained its position, reflecting confidence in the company’s long-term strategy.
- Wellington Management has been more active, increasing its stake by 0.5% recently.
Shareholder Data
| Investor | Ownership Percentage | Recent Activity |
|---|---|---|
| The Vanguard Group, Inc. | 10.2% | Increased by 1.5% in Q3 2024 |
| BlackRock, Inc. | 9.8% | Reduced by 0.8% in Q3 2024 |
| State Street Corporation | 6.5% | No change |
| Wellington Management Co. LLP | 4.3% | Increased by 0.5% in Q3 2024 |
Overall, the influence of these investors plays a crucial role in shaping the strategic direction and financial decisions of the company, impacting stock movements and overall market perception.
Market Impact and Investor Sentiment of Leidos Holdings, Inc. (LDOS)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, major shareholders exhibit a positive sentiment towards the company, largely driven by strong financial performance and strategic growth initiatives.
Recent Market Reactions: The stock market has reacted positively to significant ownership changes. Recently, the company repurchased shares amounting to $200 million in the third quarter of 2024, and a total of $450 million for the nine months ended September 27, 2024. This activity reflects confidence from management in the company's future prospects.
Analyst Perspectives: Analysts have provided insights suggesting that key investors' actions, including share repurchases and consistent dividend payments, have reinforced market confidence. The company reported dividends of $51 million and $155 million during the three and nine months ended September 27, 2024, respectively. These actions are viewed favorably, indicating a commitment to returning value to shareholders while maintaining a healthy cash flow.
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $362 million | $(396) million | $758 million | 191.4% |
| Earnings per Share (EPS) | $2.72 | $(2.91) | $5.63 | NM |
| Operating Income | $516 million | $(336) million | $852 million | NM |
| Total Revenue | $4,169 million | $3,897 million | $272 million | 7.0% |
| Dividends Paid | $51 million | $50 million | $1 million | 2.0% |
The company's backlog as of September 27, 2024, is valued at $40.561 billion, an increase from $38.043 billion in the previous year, indicating strong future revenue potential. Analysts have highlighted this growth in backlog as a critical factor in sustaining positive investor sentiment moving forward.
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Article updated on 8 Nov 2024
Resources:
- Leidos Holdings, Inc. (LDOS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Leidos Holdings, Inc. (LDOS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Leidos Holdings, Inc. (LDOS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.