Nathan's Famous, Inc. (NATH) Bundle
Who Invests in Nathan's Famous, Inc. (NATH) and Why?
Who Invests in Nathan's Famous, Inc. (NATH) and Why?
Understanding the investor profile of Nathan's Famous, Inc. (NATH) involves analyzing the types of investors involved, their motivations for investing, and the strategies they employ.
Key Investor Types
- Retail Investors: Individual investors who buy stocks through brokerage accounts, often motivated by brand loyalty and growth potential.
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies that hold large volumes of shares. For instance, as of September 29, 2024, institutional ownership stood at approximately 40%.
- Hedge Funds: Typically focused on short-term gains and may engage in trading strategies that include options and leverage. Hedge funds have been seen to adjust their positions based on market trends, with some holding 8% of the shares as of recent reports.
Investment Motivations
Investors are attracted to Nathan's Famous for various reasons:
- Growth Prospects: The company reported a revenue increase of 6% to $41,109,000 for the quarter ended September 29, 2024, compared to $38,744,000 in the same quarter the previous year.
- Dividends: Regular dividends are appealing, with a recent dividend of $0.50 per share announced for the fiscal year.
- Market Position: Nathan's Famous has a strong brand recognition in the food industry, particularly in the hot dog segment, with significant licensing agreements contributing to royalty revenues of $22,412,000 for the twenty-six weeks ended September 29, 2024.
Investment Strategies
Investors typically adopt various strategies when engaging with Nathan's Famous:
- Long-term Holding: Many retail and institutional investors are inclined to hold shares for the long term due to the company's stable growth and consistent dividend payouts.
- Short-term Trading: Hedge funds may engage in short-term trading strategies to capitalize on market volatility, especially around earnings reports.
- Value Investing: Some investors may view the current valuation metrics as attractive, given the company's price-to-earnings (P/E) ratio of approximately 12.5, suggesting potential undervaluation compared to industry peers.
| Investor Type | Ownership Percentage | Typical Strategy | Recent Performance Indicator |
|---|---|---|---|
| Retail Investors | ~52% | Long-term holding | Dividends of $0.50 per share |
| Institutional Investors | ~40% | Long-term and value investing | Revenue growth of 6% YoY |
| Hedge Funds | ~8% | Short-term trading | P/E ratio of 12.5 |
In summary, the investor landscape for Nathan's Famous is diverse, comprising retail investors, institutional funds, and hedge funds, each driven by distinct motivations and strategies that reflect their investment goals.
Institutional Ownership and Major Shareholders of Nathan's Famous, Inc. (NATH)
Institutional Ownership and Major Shareholders
As of September 29, 2024, the following are the top institutional investors and their respective shareholdings in Nathan's Famous, Inc. (NATH):
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,234,000 | 13.2% |
| The Vanguard Group, Inc. | 1,150,000 | 12.3% |
| State Street Corporation | 950,000 | 10.1% |
| T. Rowe Price Associates, Inc. | 800,000 | 8.5% |
| Invesco Ltd. | 600,000 | 6.4% |
Recent changes in ownership reveal that institutional investors have generally increased their stakes in Nathan's Famous, Inc. over the past year. For instance, BlackRock increased its holdings by approximately 5% since the previous quarter, while The Vanguard Group raised its position by 3%.
Institutional investors play a significant role in influencing the company's stock price and strategic direction. Their collective investment decisions can lead to increased stock volatility, especially during earnings announcements or major corporate events. Additionally, their involvement often signals confidence in the company's long-term growth prospects, which can attract further investment from retail investors.
As of September 29, 2024, Nathan's Famous, Inc. reported total revenues of $85,876,000, reflecting a 6% increase compared to the previous year. This uptick in financial performance has likely contributed to the growing interest from institutional investors, as they typically seek companies with solid fundamentals and growth potential.
The impact of these institutional holdings on Nathan's Famous, Inc. can also be seen through the company's stock performance. Over the last year, shares have appreciated by approximately 15%, partly due to the strategic backing from these large investors, which enhances market perception and stability.
Key Investors and Their Influence on Nathan's Famous, Inc. (NATH)
Key Investors and Their Impact on NATH
In 2024, Nathan's Famous, Inc. (NATH) has seen considerable interest from various notable investors. Among these, some prominent hedge funds and institutional investors have taken significant positions in the company.
Notable Investors
- BlackRock, Inc. - As one of the largest asset management firms globally, BlackRock held approximately 1,200,000 shares of NATH as of the latest filings, representing about 29.4% of total shares outstanding.
- Vanguard Group, Inc. - Another major player, Vanguard owns around 800,000 shares, accounting for 19.6% of the company's stock.
- Wellington Management Company, LLP - This firm has recently increased its stake to approximately 500,000 shares, which is about 12.2% of total shares.
Investor Influence
These investors significantly impact the company's operational and strategic decisions. For instance, BlackRock's substantial ownership often leads to increased scrutiny on management practices, urging the company to focus on shareholder value. As a result, Nathan's has implemented several cost-reduction strategies and improved operational efficiencies.
Moreover, Vanguard's involvement has pushed the company to enhance its environmental, social, and governance (ESG) practices, aligning with broader market trends and investor expectations.
Recent Moves
In recent months, notable moves include:
- BlackRock increased its holdings by 150,000 shares in January 2024.
- Vanguard has been gradually buying shares, with a reported acquisition of 100,000 shares in March 2024.
- Wellington Management also announced its intention to enhance its position, indicating plans to acquire an additional 50,000 shares by the end of Q2 2024.
Table of Recent Investor Activity
| Investor | Shares Owned | Percentage of Total Shares | Recent Activity |
|---|---|---|---|
| BlackRock, Inc. | 1,200,000 | 29.4% | Increased by 150,000 shares (Jan 2024) |
| Vanguard Group, Inc. | 800,000 | 19.6% | Acquired 100,000 shares (Mar 2024) |
| Wellington Management | 500,000 | 12.2% | Plans to acquire 50,000 shares (by Q2 2024) |
The involvement of these major investors not only influences the stock price but also drives strategic initiatives that could shape the company's future direction. As they continue to engage with the management, their impact on the overall performance and governance of Nathan's Famous, Inc. is likely to grow.
Market Impact and Investor Sentiment of Nathan's Famous, Inc. (NATH)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the current sentiment among major shareholders is largely positive. This is reflected in the recent performance metrics and growth strategies being implemented by the company.
Recent Market Reactions: The stock market has responded favorably to recent changes in ownership, particularly following the refinancing of its 2025 Notes. This strategic move led to a 334,000 loss on debt extinguishment, which was absorbed well by investors, as indicated by the subsequent rise in stock prices.
Analyst Perspectives: Analysts are optimistic about the company's future, citing the substantial increase in revenues. For instance, total revenues increased by approximately 6% to $85,876,000 for the twenty-six weeks ended September 29, 2024, compared to $80,729,000 for the same period in 2023 . This growth is attributed to a rise in both foodservice sales and license royalties, which further strengthens investor confidence.
| Metric | Q2 2025 | Q2 2024 | Change (%) |
|---|---|---|---|
| Total Revenues | $41,109,000 | $38,744,000 | +6% |
| Foodservice Sales | $24,536,000 | $23,352,000 | +5% |
| Company-Owned Restaurant Sales | $5,348,000 | $5,193,000 | +3% |
| License Royalties | $9,491,000 | $8,339,000 | +14% |
| Net Income | $15,307,000 | $13,099,000 | +17% |
Furthermore, the increase in franchise locations from 235 to 243 demonstrates robust growth in operational capacity, which analysts believe will support continued revenue generation .
Overall, the positive investor sentiment, combined with favorable market reactions and supportive analyst insights, positions the company well for future growth and stability in the marketplace.
Nathan's Famous, Inc. (NATH) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Nathan's Famous, Inc. (NATH) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Nathan's Famous, Inc. (NATH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Nathan's Famous, Inc. (NATH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.