Exploring Leslie's, Inc. (LESL) Investor Profile: Who’s Buying and Why?

Who Invests in Leslie's, Inc. (LESL) and Why?

Who Invests in Leslie's, Inc. (LESL) and Why?

Understanding the investor landscape for Leslie's, Inc. (LESL) requires an analysis of the various types of investors involved, their motivations, and the strategies they employ.

Key Investor Types

• Retail Investors: Individual investors who buy and sell securities for their personal accounts. As of 2024, retail ownership accounts for approximately 25% of the total shares outstanding.
• Institutional Investors: Organizations such as mutual funds, pension funds, and insurance companies. Institutional ownership stood at about 75% as of June 2024, indicating a strong backing from large financial institutions.
• Hedge Funds: These investors often take a more aggressive approach, utilizing various strategies such as long/short equity. Hedge fund ownership is estimated to be around 10% of total shares, reflecting targeted investments based on market volatility.

Investment Motivations

• Growth Prospects: Investors are attracted to Leslie's due to its potential for growth in the swimming pool supplies market, which is projected to grow by 5.6% annually through 2025.
• Market Position: Leslie's holds a significant market share of approximately 35% in the U.S. pool supply industry, making it a leader in this niche.
• Dividends: The company has a history of returning value to shareholders through dividends, with a current annual dividend yield of 2.5%.

Investment Strategies

• Long-term Holding: Many institutional investors favor Leslie's for its stability and growth potential, adopting a long-term investment horizon.
• Short-term Trading: Some retail investors engage in short-term trading, taking advantage of price fluctuations. The average trading volume is approximately 1.2 million shares daily.
• Value Investing: Investors look for undervalued stocks. Leslie's current P/E ratio is around 15, which may attract value-focused investors.

Investor Activity Table

As of June 29, 2024, Leslie's reported a net income of $60.7 million for the quarter, down from $72.5 million in the same period the previous year, while sales for the nine months totaled $932.3 million, a 9.3% decline year-over-year.

The company's current debt structure includes a long-term debt of $783.7 million, with an effective interest rate of 8.19%. This financial backdrop influences investor strategies and outlook on Leslie's future performance.

Institutional Ownership and Major Shareholders of Leslie's, Inc. (LESL)

Institutional Ownership and Major Shareholders

As of June 29, 2024, the following institutional investors hold significant stakes in Leslie's, Inc. (LESL):

Recent changes in ownership indicate a mixed trend among institutional investors:

• BlackRock, Inc. has increased its holdings by 1.5 million shares over the last quarter.
• The Vanguard Group, Inc. has decreased its stake by 500,000 shares.
• State Street Corporation has maintained its position with no changes in shareholding.
• FMR LLC has decreased its holdings by 1 million shares.
• Invesco Ltd. has increased its stake by 400,000 shares.

Institutional investors play a crucial role in shaping the stock price and strategic direction of Leslie's, Inc. Their large stakes often provide stability to the stock, as these investors typically have a long-term investment horizon. Additionally, their involvement can influence management decisions and corporate governance practices.

Leslie's, Inc. has seen fluctuations in its stock price, influenced in part by these institutional movements:

• As of June 29, 2024, the stock price was approximately $15.50, reflecting a 5.2% increase over the previous quarter.
• In the past year, the stock has experienced a 12% decline, attributed to broader market conditions and specific company performance challenges.

Overall, institutional ownership remains a significant factor in the company's market performance and strategic initiatives.

Key Investors and Their Influence on Leslie's, Inc. (LESL)

Key Investors and Their Impact on Leslie's, Inc. (LESL)

Leslie's, Inc. has attracted attention from various notable investors, including institutional funds and individual stakeholders. Understanding their influence is crucial for grasping the dynamics affecting the company’s stock performance.

Notable Investors

• Vanguard Group: Holds approximately 9.8% of the total shares outstanding.
• BlackRock, Inc.: Owns about 8.5% of the shares, indicating significant institutional interest.
• Wellington Management: Owns around 6.2% of the shares, contributing to the shareholder diversity.
• Bill Ackman: Known as an activist investor, he has been vocal about corporate governance improvements.

Investor Influence

Institutional investors like Vanguard and BlackRock typically influence corporate governance through voting rights and shareholder proposals. Their significant stakes can sway management decisions, particularly around strategic initiatives and operational efficiency. For instance, their focus on sustainability and cost management has led the company to enhance its operational practices.

Activist investors like Bill Ackman often push for changes that can lead to stock price appreciation. Their involvement can lead to restructuring initiatives, improved financial performance, and a focus on shareholder returns.

Recent Moves

In 2024, notable movements included:

• Vanguard increased its stake by acquiring an additional 1.2 million shares in Q1 2024.
• BlackRock slightly reduced its holdings by 0.5 million shares amidst market volatility.
• Bill Ackman initiated a campaign advocating for enhanced shareholder returns, leading to discussions of a potential dividend increase.

Financial Overview

As of June 29, 2024, Leslie's reported:

• Net income: $60.7 million for the three months ended, down from $72.5 million year-over-year.
• Net loss: $13.5 million for the nine months ended, compared to net income of $10.8 million in the prior year.
• Sales: Decreased to $932.3 million for the nine months ended, down 9.3% from $1,018.8 million in the previous year.
• Adjusted EBITDA: $109.5 million for the three months ended, down from $129.0 million year-over-year.

Investor movements and their subsequent influence highlight the dynamic environment in which Leslie's operates, shaping both strategic decisions and stock performance in 2024.

Market Impact and Investor Sentiment of Leslie's, Inc. (LESL)

Market Impact and Investor Sentiment

Investor Sentiment: As of 2024, major shareholders exhibit a neutral sentiment towards the company. Institutional ownership remains stable, indicating confidence, but recent performance has led to cautious optimism among retail investors.

Recent Market Reactions: The stock market has reacted cautiously to recent changes in ownership. Notably, a significant investor moved to increase their stake, resulting in a temporary stock price surge of 5.2% following the announcement. However, this was followed by a 3.1% decrease as the market digested the implications of current financial performance.

Analyst Perspectives: Analysts have expressed mixed views regarding the impact of key investors on the company's future. Some analysts believe that the increased institutional support could bolster the company’s long-term growth prospects, while others warn that the recent decline in net income could hinder immediate performance. Current price targets from analysts range from $15 to $22, reflecting this uncertainty.

The overall market activity reflects a cautious approach as investors weigh the implications of operational performance against the backdrop of broader economic conditions. Key metrics such as sales, gross profit, and market reactions to investor movements will continue to shape sentiment as 2024 progresses.