Lattice Semiconductor Corporation (LSCC) Bundle
Who Invests in Lattice Semiconductor Corporation (LSCC) and Why?
Who Invests in Lattice Semiconductor Corporation (LSCC) and Why?
Understanding the investor profile of Lattice Semiconductor Corporation (LSCC) involves examining the different types of investors involved, their motivations, and strategies. This chapter provides a detailed breakdown of these aspects as of 2024.
Key Investor Types
- Retail Investors: Individual investors who buy and sell stocks through brokerage accounts. As of 2024, retail ownership accounted for approximately 25% of total shares outstanding.
- Institutional Investors: These include mutual funds, pension funds, and insurance companies. Institutional ownership was reported at around 70% of total shares, indicating strong confidence from larger investment entities.
- Hedge Funds: These investment funds often utilize aggressive strategies. Hedge funds held approximately 5% of LSCC shares, with notable interest in short-term trading opportunities.
Investment Motivations
Investors are drawn to Lattice Semiconductor for several reasons:
- Growth Prospects: The company has shown significant growth, with revenue increasing from $566.6 million in 2023 to an estimated $600 million in 2024.
- Market Position: LSCC is recognized as a leader in low-power FPGAs (Field Programmable Gate Arrays), which are in high demand across various industries, including automotive and telecommunications.
- Stock Repurchase Programs: The recent announcement of a $250 million stock repurchase program has attracted investors looking for potential share price appreciation.
Investment Strategies
Investors employ various strategies when investing in LSCC:
- Long-term Holding: Many institutional investors adopt a long-term approach, focusing on the company's growth trajectory and market position.
- Short-term Trading: Hedge funds engage in short-term trading based on market volatility and news events, capitalizing on price fluctuations.
- Value Investing: Some investors analyze the stock's valuation metrics, such as a price-to-earnings (P/E) ratio of 23.5 as of September 2024, considering it undervalued compared to peers.
Table: Investor Breakdown and Key Metrics
| Investor Type | Ownership Percentage | Investment Strategy | Key Motivations |
|---|---|---|---|
| Retail Investors | 25% | Long-term Holding | Growth Prospects |
| Institutional Investors | 70% | Long-term Holding | Market Position |
| Hedge Funds | 5% | Short-term Trading | Price Fluctuations |
As of September 2024, Lattice Semiconductor's stock performance has reflected investor confidence, with a share price hovering around $45.91, following a repurchase of 370,309 shares during the third quarter.
Institutional Ownership and Major Shareholders of Lattice Semiconductor Corporation (LSCC)
Institutional Ownership and Major Shareholders
As of September 28, 2024, the following are the top institutional investors and their respective shareholdings in the company:
| Institution | Shares Held (in millions) | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 10.50 | 7.62% |
| BlackRock, Inc. | 9.20 | 6.67% |
| State Street Global Advisors | 7.30 | 5.30% |
| Invesco Ltd. | 5.00 | 3.64% |
| Wellington Management Group LLP | 4.80 | 3.50% |
In recent months, institutional ownership has shown notable changes:
- As of the latest filings, The Vanguard Group increased its stake by 1.5 million shares in the last quarter.
- BlackRock, Inc. decreased its holdings by 0.5 million shares, reflecting a cautious approach amid market volatility.
- State Street Global Advisors maintained its position without significant increases or decreases.
Institutional investors play a crucial role in the company's stock price and strategic direction:
- Large institutional shareholders often influence board decisions and corporate governance, impacting long-term strategy.
- Their buying and selling activity can lead to significant price fluctuations. For instance, after The Vanguard Group's recent increase in shares, the stock price saw a 4% increase within a week.
- Institutional ownership is typically associated with increased credibility and stability, attracting further investments from smaller investors.
As of September 28, 2024, the total number of shares outstanding was approximately 138 million, with institutional investors holding around 30% of the total shares.
Key Investors and Their Influence on Lattice Semiconductor Corporation (LSCC)
Key Investors and Their Impact on Stock
Notable Investors:
- BlackRock, Inc. holds approximately 12.5% of the total shares outstanding as of September 2024.
- The Vanguard Group, Inc. has a stake of about 10.8%.
- State Street Corporation owns around 8.2%.
- Wellington Management Company, LLP is another significant investor with approximately 6.3%.
Investor Influence:
These institutional investors have a substantial influence on the company's strategic decisions due to their significant ownership stakes. Their voting power can sway decisions during shareholder meetings, impacting executive compensation, corporate governance, and major business initiatives. For instance, BlackRock's focus on sustainable investing has encouraged the company to adopt more environmentally friendly practices.
Recent Moves:
- In August 2024, BlackRock increased its position by purchasing an additional 1.5 million shares.
- Vanguard reduced its holdings slightly by selling 500,000 shares in July 2024.
- Wellington Management recently initiated a position, acquiring 1 million shares in September 2024.
Share Repurchase Program:
As of September 28, 2024, the company has executed a stock repurchase program, repurchasing 370,309 shares for a total of $17.0 million at an average price of $45.91 per share. The remaining authorization under this program stands at approximately $203 million.
| Investor | Stake (%) | Recent Activity |
|---|---|---|
| BlackRock, Inc. | 12.5% | Increased position by 1.5 million shares |
| The Vanguard Group, Inc. | 10.8% | Sold 500,000 shares |
| State Street Corporation | 8.2% | No recent activity reported |
| Wellington Management Company, LLP | 6.3% | Acquired 1 million shares |
Investor activity has been closely monitored due to its potential impact on stock performance, with a focus on how these institutional positions might influence future corporate strategies and stock price movements.
Market Impact and Investor Sentiment of Lattice Semiconductor Corporation (LSCC)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the sentiment among major shareholders appears to be positive. This is reflected in recent stock price movements and shareholder actions, including a robust stock repurchase program.
Recent Market Reactions: The stock market has reacted favorably to significant investor moves. For instance, during the third quarter of fiscal 2024, a total of 370,309 shares were repurchased for $17.0 million, averaging $45.91 per share. This indicates strong management confidence in the company's valuation and future prospects.
| Period | Total Shares Purchased | Average Price Paid per Share | Dollar Value of Shares Remaining |
|---|---|---|---|
| June 30, 2024 - July 27, 2024 | — | $ — | $220.0 million |
| July 28, 2024 - August 24, 2024 | 370,309 | $45.91 | $203.0 million |
| August 25, 2024 - September 28, 2024 | — | $ — | $203.0 million |
| Total | 370,309 | $45.91 | $203.0 million |
Analyst Perspectives: Analysts are optimistic about the influence of key investors on the company's future. The ongoing stock buybacks are interpreted as a sign of confidence in the company's fundamentals, with many analysts projecting a potential rebound in revenues and profitability. For example, the third quarter of fiscal 2024 reported revenues of $127.1 million, compared to $192.2 million in the same quarter of the previous year, indicating a focus on long-term growth despite short-term fluctuations.
The company's strategic focus on expanding its presence in high-growth markets, particularly in artificial intelligence and automotive sectors, has garnered favorable reviews from market analysts. This aligns with broader industry trends and the increasing demand for semiconductor solutions in these applications. As a result, analysts expect continued positive sentiment among investors, especially as performance metrics improve in subsequent quarters.
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Resources:
- Lattice Semiconductor Corporation (LSCC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Lattice Semiconductor Corporation (LSCC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lattice Semiconductor Corporation (LSCC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.