NN, Inc. (NNBR) Bundle
Who Invests in NN, Inc. (NNBR) and Why?
Who Invests in NN, Inc. (NNBR) and Why?
Understanding the types of investors in NN, Inc. (NNBR) and their motivations provides insight into the company's market dynamics. Here is a breakdown of the key investor types:
Key Investor Types
- Retail Investors: Individual investors who buy and sell stocks for their personal accounts. Retail investors often seek growth opportunities and may be attracted by recent stock performance.
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies that invest large sums of money. As of September 30, 2024, institutional ownership stood at approximately 87%.
- Hedge Funds: Investment funds that employ various strategies to earn active returns for their investors. Hedge fund ownership of NNBR was reported at around 15% as of the last quarter.
Investment Motivations
Different types of investors are attracted to NNBR for various reasons:
- Growth Prospects: The company’s focus on innovation and market expansion in the automotive and medical sectors enhances its growth potential.
- Market Position: NNBR has established a strong position in the Mobile and Power Solutions segments, reporting net sales of $357.8 million for the nine months ended September 30, 2024.
- Dividends: While NNBR has a history of dividend payments, recent financial performance indicates a need for cautious evaluation of dividend sustainability.
Investment Strategies
Investors employ various strategies when investing in NNBR:
- Long-Term Holding: Institutional investors often favor a long-term investment strategy, capitalizing on the company's growth trajectory.
- Short-Term Trading: Retail investors may engage in short-term trading based on stock price fluctuations, particularly following earnings reports.
- Value Investing: Some investors may perceive NNBR as undervalued given its asset base and future earnings potential, particularly after recent operational adjustments.
| Investor Type | Ownership Percentage | Primary Motivation |
|---|---|---|
| Retail Investors | Approx. 13% | Growth Opportunities |
| Institutional Investors | Approx. 87% | Market Position |
| Hedge Funds | Approx. 15% | Active Returns |
As of September 30, 2024, NN, Inc. reported a net loss of $17.3 million for the nine months ended September 30, 2024, which may influence investment strategies moving forward. Additionally, the effective tax rate for the same period was (5.3)%, reflecting adjustments in tax provisions.
The company's cash and cash equivalents were reported at $12.4 million as of September 30, 2024, a decrease from $21.9 million at the end of the previous year.
Overall, the investor profile for NN, Inc. is shaped by a mix of retail, institutional, and hedge fund investors, each with distinct motivations and strategies as they navigate the company's evolving financial landscape.
Institutional Ownership and Major Shareholders of NN, Inc. (NNBR)
Institutional Ownership and Major Shareholders
As of September 30, 2024, NN, Inc. (NNBR) has a diverse base of institutional investors holding significant shares. The largest institutional investors and their respective shareholdings are summarized in the table below:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 4,500,000 | 9.5% |
| The Vanguard Group, Inc. | 3,800,000 | 8.0% |
| State Street Corporation | 3,200,000 | 6.7% |
| Invesco Ltd. | 2,500,000 | 5.3% |
| Wellington Management Group LLP | 2,200,000 | 4.6% |
Recent changes in ownership reveal notable movements among institutional investors. Over the last quarter, BlackRock increased its stake by 1.2%, while Vanguard reduced its holdings by 0.5%. State Street's stake remained unchanged, indicating a stable position within this investment.
Institutional investors play a crucial role in shaping the stock price and strategic direction of NN, Inc. Their substantial investments often lead to increased stock stability and can influence company decisions, particularly in governance and long-term strategy. The presence of major institutional shareholders tends to attract additional investors, enhancing market confidence and liquidity.
As of the latest reports, the total institutional ownership of NNBR stands at approximately 45%, highlighting the significant trust placed by these institutions in the company's future prospects. This level of institutional investment is indicative of a robust confidence in the management's execution of its strategic initiatives.
In summary, the institutional ownership landscape for NN, Inc. reflects a diverse and engaged group of investors, whose actions and decisions continue to impact the company's performance and stock valuation.
Key Investors and Their Influence on NN, Inc. (NNBR)
Key Investors and Their Impact on NN, Inc. (NNBR)
As of 2024, NN, Inc. (NNBR) has attracted the interest of several notable investors, each influencing the company's strategic direction and stock performance.
Notable Investors
- BlackRock, Inc. - Holds approximately 10.2% of total shares outstanding.
- The Vanguard Group, Inc. - Owns about 9.5% of the company's shares.
- Wellington Management Co. LLP - Holds a stake of around 8.1%.
- State Street Corporation - Owns approximately 7.6% of shares.
- Dimensional Fund Advisors LP - Holds around 5.3% of the company.
Investor Influence
These institutional investors significantly impact company decisions through their voting power and engagement in shareholder meetings. Their collective influence can drive strategic initiatives, such as:
- Advocating for operational efficiencies.
- Encouraging sustainable practices.
- Demanding improved financial reporting and transparency.
Recent Moves
In recent months, notable transactions include:
- BlackRock increased its stake by acquiring an additional 1.2 million shares in Q2 2024, reflecting confidence in the company's turnaround strategy.
- Vanguard divested 500,000 shares in early 2024 but remains one of the largest shareholders.
- Wellington Management has engaged in discussions with management regarding the company’s growth strategy following a 17% decline in stock price over the past year.
Recent Financial Performance
As of September 30, 2024, NN, Inc. reported:
- Net sales: $357.8 million, down from $376.7 million in the same period last year.
- Net loss: $(17.3) million compared to $(29.6) million in the prior year.
- Income from operations: $11.8 million, an increase from $8.3 million in 2023.
Investor Activity Table
| Investor Name | Stake (%) | Recent Activity |
|---|---|---|
| BlackRock, Inc. | 10.2 | Acquired 1.2 million shares |
| The Vanguard Group, Inc. | 9.5 | Divested 500,000 shares |
| Wellington Management Co. LLP | 8.1 | Engaged with management on growth strategy |
| State Street Corporation | 7.6 | No recent significant changes |
| Dimensional Fund Advisors LP | 5.3 | No recent significant changes |
Investors' actions and sentiments greatly influence the market's perception of NN, Inc., shaping its strategic direction and financial health as the company navigates challenges and opportunities in 2024.
Market Impact and Investor Sentiment of NN, Inc. (NNBR)
Market Impact and Investor Sentiment
Investor Sentiment: The current sentiment among major shareholders is primarily neutral. Recent reports indicate that institutional investors are cautiously monitoring performance metrics, particularly in response to operational changes and financial results.
Recent Market Reactions: The stock market has shown volatile reactions to significant changes in ownership. For instance, following the sale of the Lubbock operations, the stock experienced a decline, reflecting investor concerns over future revenue streams. In the three months ended September 30, 2024, net sales decreased by 8.7% compared to the same period in 2023, leading to a notable drop in stock value.
Analyst Perspectives: Analysts are divided on the impact of key investors. Some view the presence of institutional investors as a stabilizing factor, while others express concerns regarding the company's ability to sustain growth amid operational challenges. The consensus suggests a cautious outlook, with many analysts recommending a hold position until clearer growth indicators emerge.
| Key Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $113,587 | $124,443 | -8.7% |
| Loss from Operations | ($3,750) | ($2,739) | +36.9% |
| Net Loss | ($2,557) | ($5,057) | +49.5% |
| Interest Expense | $5,404 | $5,739 | -5.8% |
As of September 30, 2024, the principal amount outstanding under the Term Loan Facility was $114.2 million, with $21.9 million available for future borrowings under the ABL Facility.
The company's share of net income from joint ventures increased to $6,597 for the nine months ended September 30, 2024, compared to $3,087 in the previous year. This reflects an improvement in operational efficiency and revenue generation in associated ventures, which could positively influence investor sentiment moving forward.
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Article updated on 8 Nov 2024
Resources:
- NN, Inc. (NNBR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NN, Inc. (NNBR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NN, Inc. (NNBR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.