N-able, Inc. (NABL) Bundle
Who Invests in N-able, Inc. (NABL) and Why?
Who Invests in N-able, Inc. and Why?
Understanding the investor landscape for N-able, Inc. (NABL) involves analyzing various investor types, their motivations, and strategies utilized in their investment decisions.
Key Investor Types
- Retail Investors: Individual investors who buy and sell stocks through brokerage accounts. As of September 30, 2024, retail investors accounted for approximately 30% of total trading volume in NABL.
- Institutional Investors: Entities such as pension funds, mutual funds, and insurance companies. Institutional ownership of NABL is around 55%, indicating strong confidence in the company's long-term growth potential.
- Hedge Funds: Funds that employ various strategies to earn active returns. Hedge funds have recently increased their positions in NABL, with a reported 15% of shares held by hedge fund investors as of the last quarter.
Investment Motivations
Investors are attracted to N-able, Inc. for several reasons:
- Growth Prospects: The company has demonstrated substantial growth, with a revenue increase from $107.6 million in Q3 2023 to $116.4 million in Q3 2024.
- Market Position: N-able has positioned itself as a leader in the managed services provider (MSP) market, boasting approximately 25,000 customers and 2,275 MSP partners as of September 30, 2024.
- Recurring Revenue Model: The company’s annualized recurring revenue (ARR) shows a growth of 6.6% year-over-year, enhancing investor confidence in stable revenue streams.
Investment Strategies
Investors typically employ various strategies when investing in NABL:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, evidenced by a significant portion of shares held for over a year.
- Short-Term Trading: Retail and hedge fund investors often engage in short-term trading to capitalize on stock price volatility, particularly during earnings reports.
- Value Investing: Some investors focus on the company’s fundamentals, such as its operating income of $23.9 million for Q3 2024, viewing it as an attractive entry point based on valuation metrics.
Financial Overview
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $116.4 million | $107.6 million | 8.3% |
| Net Income | $10.8 million | $6.0 million | 80.0% |
| Adjusted EBITDA | $44.8 million | $36.6 million | 22.5% |
| Operating Income | $23.9 million | $18.4 million | 29.9% |
This financial performance indicates a robust operational efficiency, appealing to both growth-oriented and value-focused investors.
Conclusion
The diverse investor base, coupled with strong growth metrics and strategic market positioning, makes N-able, Inc. a compelling investment opportunity in the technology sector.
Institutional Ownership and Major Shareholders of N-able, Inc. (NABL)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following table details the largest institutional investors in N-able, Inc. (NABL) along with their respective shareholdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 25,760,000 | 13.9% |
| The Vanguard Group, Inc. | 20,500,000 | 11.1% |
| State Street Corporation | 15,000,000 | 8.1% |
| Invesco Ltd. | 10,500,000 | 5.7% |
| T. Rowe Price Associates, Inc. | 8,000,000 | 4.3% |
Recent changes in institutional ownership reveal a slight increase in stakes among major investors. For instance, BlackRock increased its holdings by 2.5% since June 2024, while Vanguard saw a similar increase of 1.8% during the same period.
Institutional investors play a critical role in the company’s stock price and strategy. Their investment decisions can significantly influence market perceptions, often leading to increased volatility. For example, when major investors such as BlackRock and Vanguard announce increased holdings, it can lead to a positive sentiment among retail investors, thus boosting the stock price. Additionally, their involvement often brings greater scrutiny and governance oversight, which can enhance corporate strategy and operational efficiency.
As of September 30, 2024, the company reported total shares outstanding at approximately 185.8 million. The following table summarizes the changes in institutional ownership over the previous quarters:
| Quarter | Percentage Change in Institutional Ownership |
|---|---|
| Q1 2024 | 0.5% |
| Q2 2024 | 1.2% |
| Q3 2024 | 1.8% |
Overall, the trend indicates a growing confidence among institutional investors in the company’s future prospects, as they continue to increase their stakes in response to the company’s positive financial performance and strategic initiatives.
Key Investors and Their Influence on N-able, Inc. (NABL)
Key Investors and Their Impact on NABL
As of 2024, N-able, Inc. (NABL) has attracted significant interest from various notable investors. This chapter explores key investors, their influence on company decisions, and recent moves that have shaped the stock's performance.
Notable Investors
Some key investors in N-able, Inc. include:
- BlackRock, Inc. - A leading global investment management firm, holding approximately 11.2% of the total shares as of the latest filings.
- The Vanguard Group, Inc. - Another major institutional investor, owning around 9.8% of the outstanding shares.
- Wellington Management Company, LLP - Known for its active management strategies, holding about 8.5% of shares.
- Fidelity Investments - A prominent name in mutual funds, with an ownership stake of approximately 7.1%.
Investor Influence
These investors play critical roles in influencing the company's strategic decisions and stock movements:
- Voting Power: As major shareholders, they wield significant voting power in critical corporate decisions, including mergers and acquisitions.
- Strategic Guidance: Their investment strategies often guide the company’s focus areas, such as expanding into new markets or enhancing product offerings.
- Market Confidence: The presence of reputable investors boosts market confidence, often leading to increased share prices following their investment announcements.
Recent Moves
Recent notable moves by these investors include:
- BlackRock increased its stake by acquiring an additional 1.5 million shares in the last quarter, reflecting confidence in the company's growth potential.
- Vanguard has been gradually increasing its holdings, recently purchasing 750,000 shares which indicates a bullish outlook on the stock.
- Wellington Management has engaged in activist investing, encouraging the company to enhance its operational efficiencies, which has resulted in a 15% rise in stock price following their recommendations.
Investor Impact on Stock Performance
The influence of these investors is evident in the stock's recent performance:
| Investor | Current Stake (%) | Recent Activity | Impact on Stock Price (%) |
|---|---|---|---|
| BlackRock, Inc. | 11.2 | Acquired 1.5 million shares | +5.0 |
| The Vanguard Group, Inc. | 9.8 | Purchased 750,000 shares | +3.2 |
| Wellington Management Company, LLP | 8.5 | Activist engagement | +15.0 |
| Fidelity Investments | 7.1 | Stable holdings | +2.0 |
As shown, these investors have not only increased their stakes but also positively influenced the stock price through their strategic actions and market presence.
Market Impact and Investor Sentiment of N-able, Inc. (NABL)
Market Impact and Investor Sentiment
Investor Sentiment: As of September 30, 2024, major shareholders exhibit a positive sentiment towards the company, reflecting confidence in its growth trajectory and operational efficiency.
Recent Market Reactions: Following significant ownership changes, the stock price experienced fluctuations. On October 1, 2024, the stock closed at $14.75, up from $13.20 on September 30, 2024, indicating a 11.7% increase in response to positive earnings reports and investor confidence.
Analyst Perspectives: Analysts project a favorable outlook for the company, with a consensus rating of Buy. The average target price among analysts is set at $16.50, reflecting a potential upside of 11.5% from the current trading price. Analysts attribute this positive outlook to the company’s increasing annualized recurring revenue (ARR) and expanding customer base.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $116.4 million | $107.6 million | +8.2% |
| Net Income | $10.8 million | $6.0 million | +80% |
| Operating Income | $23.9 million | $18.4 million | +29.9% |
| Basic EPS | $0.06 | $0.03 | +100% |
Ownership Changes: Recently, a large institutional investor increased its stake by acquiring an additional 1.5 million shares, bringing their total ownership to 15% of total shares outstanding, which contributed to the overall positive sentiment.
Analyst Recommendations: The majority of analysts (approximately 75%) recommend buying the stock, citing strong fundamentals, including a 6.6% increase in MSP partners with ARR over $50,000, indicative of robust growth in key customer segments.
Market Trends: The company’s stock has outperformed the technology sector by 3.5% over the past year, reflecting strong demand for its services amidst a competitive landscape.
Future Prospects: Analysts anticipate continued growth driven by the company’s strategic initiatives, including the Long-Term Contract Initiative, which is expected to enhance revenue stability and predictability.
Key Financial Metrics: The following table summarizes key financial metrics for the company as of September 30, 2024:
| Financial Metric | Value |
|---|---|
| Cash and Cash Equivalents | $174.4 million |
| Debt (Total) | $333.6 million |
| Annualized Recurring Revenue (ARR) | $350 million |
| Number of Customers | 25,000 |
| MSP Partners (ARR > $50,000) | 2,275 |
The company's performance metrics and investor sentiment reflect a positive outlook, bolstered by strong growth in revenue and net income, alongside a solid base of recurring revenue sources.
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Resources:
- N-able, Inc. (NABL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of N-able, Inc. (NABL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View N-able, Inc. (NABL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.