Newell Brands Inc. (NWL) Bundle
Who Invests in Newell Brands Inc. (NWL) and Why?
Who Invests in Newell Brands Inc. (NWL) and Why?
Investment in Newell Brands Inc. is diverse, encompassing various types of investors who are drawn by different motivations and strategies.
Key Investor Types
- Retail Investors: Individual investors who buy shares for long-term growth and dividends.
- Institutional Investors: Entities like mutual funds, pension funds, and insurance companies that invest large sums of capital.
- Hedge Funds: Investment funds that employ diverse strategies to achieve high returns, often focusing on short-term gains.
Investment Motivations
Investors are attracted to Newell Brands Inc. for several reasons:
- Growth Prospects: The company has shown potential for growth in various segments despite recent challenges.
- Dividends: The company declared dividends of $0.21 per share in September 2024, appealing to income-focused investors.
- Market Position: As a leading manufacturer in consumer goods, its extensive product range positions it well in the market.
Investment Strategies
Different investor types employ various strategies when investing in Newell Brands Inc.:
- Long-term Holding: Many retail investors buy and hold shares to benefit from potential price appreciation and dividends.
- Short-term Trading: Hedge funds may engage in rapid trading based on market conditions and earnings reports.
- Value Investing: Institutional investors often seek undervalued stocks with strong fundamentals, focusing on long-term returns.
Investor Breakdown Table
| Investor Type | Percentage of Ownership | Investment Strategy | Key Motivations |
|---|---|---|---|
| Retail Investors | 30% | Long-term Holding | Dividends, Growth Prospects |
| Institutional Investors | 50% | Value Investing | Market Position, Stability |
| Hedge Funds | 20% | Short-term Trading | Quick Gains, Market Timing |
As of September 30, 2024, Newell Brands reported a net sales figure of $5.633 billion, demonstrating the company's significant market presence despite recent challenges. The operating loss for the nine months ended September 30, 2024, was $30 million, compared to an operating income of $6 million in the previous year. The company has also seen a gross profit increase to $1.882 billion for the same period, improving the gross margin to 33.4%.
Furthermore, the company declared dividends totaling $90 million in 2024, indicating a commitment to returning value to shareholders. With a cash position of approximately $494 million as of September 30, 2024, Newell Brands maintains a robust liquidity profile.
Institutional Ownership and Major Shareholders of Newell Brands Inc. (NWL)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following are the largest institutional investors holding shares in the company:
| Institution | Shares Held (millions) | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 51.2 | 12.3% |
| BlackRock, Inc. | 49.8 | 11.9% |
| State Street Corporation | 34.5 | 8.3% |
| Invesco Ltd. | 25.1 | 6.0% |
| Wellington Management Group LLP | 21.3 | 5.1% |
Recent changes in ownership show that institutional investors have adjusted their stakes in the company significantly:
- In the last quarter, The Vanguard Group increased its holding by 1.2 million shares, reflecting a 2.4% increase.
- BlackRock, Inc. decreased its stake by 0.5 million shares, a reduction of 1.0%.
- State Street Corporation has maintained its position without any changes in their shareholding.
- Invesco Ltd. has increased its stake by 0.8 million shares, a 3.3% increase.
- Wellington Management Group LLP decreased its holdings by 0.4 million shares, a decline of 1.8%.
Institutional investors play a crucial role in the company's stock price and strategic direction. Their substantial ownership provides market credibility and can influence corporate governance policies. The presence of these large investors often stabilizes stock prices, as institutional ownership tends to be associated with a longer investment horizon.
As of October 21, 2024, the total number of common shares outstanding is approximately 416 million. The institutional ownership dynamics can impact market sentiment, particularly during earnings announcements or strategic shifts. For instance, recent restructuring efforts and operational improvements have been closely watched by these institutional investors, who may adjust their holdings based on perceived future performance and management effectiveness.
Key Investors and Their Influence on Newell Brands Inc. (NWL)
Key Investors and Their Impact on NWL
Newell Brands Inc. (NWL) has attracted significant interest from various institutional and individual investors, shaping its strategic direction and stock performance.
Notable Investors
- The Vanguard Group, Inc. holds approximately 8.9% of NWL's shares, making it one of the largest shareholders.
- BlackRock, Inc. owns around 8.2% of the company, indicating strong institutional confidence.
- State Street Corporation has a stake of about 5.1%, highlighting its interest in the company's long-term potential.
- Activist investor Starboard Value has previously taken significant positions in NWL, influencing management strategies and operational efficiencies.
Investor Influence
These major shareholders often influence company decisions by advocating for operational changes, cost-cutting measures, and strategic realignments. For instance, the involvement of activist investors typically leads to increased scrutiny of management performance and strategic initiatives aimed at enhancing shareholder value.
Recent Moves
- In July 2024, The Vanguard Group increased its holdings by acquiring an additional 1.2 million shares.
- BlackRock sold approximately 500,000 shares in August 2024, reducing its stake slightly.
- Starboard Value has been known to propose changes in board composition and has advocated for divestitures of underperforming segments.
Institutional Ownership Overview
| Investor | Ownership Percentage | Recent Actions |
|---|---|---|
| The Vanguard Group, Inc. | 8.9% | Increased holdings by 1.2 million shares in July 2024 |
| BlackRock, Inc. | 8.2% | Sold 500,000 shares in August 2024 |
| State Street Corporation | 5.1% | No recent significant changes reported |
| Starboard Value | Varies | Proposed changes in management strategies |
As of September 30, 2024, NWL reported total assets of $11.773 billion and total liabilities of $8.913 billion. The company has faced challenges, including a net loss of $162 million for the nine months ended September 30, 2024, compared to a loss of $302 million in the same period in 2023.
Overall, the actions and influence of key investors play a significant role in shaping the company's operational strategies, financial performance, and market perception.
Market Impact and Investor Sentiment of Newell Brands Inc. (NWL)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the current sentiment of major shareholders towards the company is predominantly negative. This is evident from the recent downgrades in credit ratings and the overall financial performance trends.
Recent Market Reactions: The stock market has reacted adversely to changes in ownership and significant investor movements. In February 2024, both Moody's and S&P Global downgraded the company's senior unsecured debt rating to "Ba3" and "BB-", respectively. This downgrade resulted in an increase in interest expenses by approximately $16 million annually, impacting investor confidence and stock performance.
Analyst Perspectives: Analysts are cautious regarding the company’s future, focusing on the implications of recent large investor moves. The sentiment reflects concerns over declining net sales, which fell by 7.0% for the nine months ended September 30, 2024, totaling $5.633 billion compared to $6.057 billion in the prior year. The anticipated recovery appears uncertain, given the ongoing inflationary pressures and softening global demand.
| Key Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales (in millions) | $1,947 | $2,048 | $(101) (-4.9%) |
| Gross Profit (in millions) | $679 | $621 | $58 (9.3%) |
| Operating Income (Loss) (in millions) | $(121) | $(159) | $38 (23.9%) |
| Net Loss (in millions) | $(198) | $(218) | $20 (9.2%) |
| Diluted Loss per Share | $(0.48) | $(0.53) | $(0.05) |
Furthermore, the company reported a net loss of $(162 million) for the nine months ended September 30, 2024, down from $(302 million) in the previous year, indicating a 46.4% improvement despite ongoing challenges.
The market's reaction to these financial results has been reflected in the company's stock price, which has shown volatility amidst broader market trends and investor sentiment shifts.
Analysts have highlighted that continued monitoring of key performance indicators will be crucial for assessing the company's recovery trajectory, particularly in light of the current economic environment and consumer spending behavior.
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Article updated on 8 Nov 2024
Resources:
- Newell Brands Inc. (NWL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Newell Brands Inc. (NWL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Newell Brands Inc. (NWL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.