Plexus Corp. (PLXS) Bundle
Who Invests in Plexus Corp. (PLXS) and Why?
Who Invests in Plexus Corp. (PLXS) and Why?
Understanding the investor landscape for Plexus Corp. involves examining the types of investors, their motivations, and the strategies they employ.
Key Investor Types
- Retail Investors: Individual investors who buy and sell shares through brokerage accounts. They typically account for a smaller portion of the overall ownership but can influence stock movement.
- Institutional Investors: Large organizations such as mutual funds, pension funds, and insurance companies. They hold a significant percentage of shares, with institutional ownership reported at approximately 89.4% as of Q4 2024.
- Hedge Funds: These are investment funds that employ various strategies to earn active return for their investors. As of the latest reports, hedge funds hold about 15.6% of the shares in Plexus Corp.
Investment Motivations
Investors are attracted to Plexus Corp. for several reasons:
- Growth Prospects: The company has shown strong revenue growth, reporting fiscal 2024 revenue of $3.96 billion, with a fourth-quarter revenue of $1.05 billion.
- Market Position: Plexus has established itself in high-demand sectors such as Aerospace/Defense and Healthcare, which contributed 39% and 43% of total revenue respectively in Q4 2024.
- Free Cash Flow Generation: The company generated a record free cash flow of $341 million in fiscal 2024, providing ample room for reinvestment and shareholder returns.
Investment Strategies
Different types of investors apply various strategies when investing in Plexus Corp.:
- Long-term Holding: Many institutional investors adopt a long-term perspective, focusing on the company's growth potential and sustainable cash flow generation.
- Short-term Trading: Retail investors may engage in short-term trading based on market trends and quarterly earnings reports, especially given the stock's volatility.
- Value Investing: Some investors look for undervalued stocks based on financial metrics such as price-to-earnings ratio, which for Plexus is reported at 24.93 as of the latest quarter.
Investor Ownership Breakdown
| Investor Type | Ownership Percentage | Investment Strategy |
|---|---|---|
| Retail Investors | 10.6% | Short-term Trading |
| Institutional Investors | 89.4% | Long-term Holding |
| Hedge Funds | 15.6% | Value Investing |
Overall, the investor profile for Plexus Corp. reflects a robust interest from institutional investors, driven by the company's strong fundamentals and growth potential in key market sectors.
Institutional Ownership and Major Shareholders of Plexus Corp. (PLXS)
Institutional Ownership and Major Shareholders
As of 2024, Plexus Corp. (PLXS) has seen significant activity among its institutional investors. Below is a detailed overview of the largest institutional investors and their respective shareholdings.
Top Institutional Investors
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,200,000 | 12.5% |
| The Vanguard Group, Inc. | 1,900,000 | 10.7% |
| State Street Corporation | 1,500,000 | 8.5% |
| Wellington Management Group LLP | 1,200,000 | 6.8% |
| Invesco Ltd. | 1,000,000 | 5.6% |
Changes in Ownership
Recent data indicates a mixed trend in institutional ownership. For instance:
- BlackRock, Inc. increased its stake by 2.0% over the last quarter.
- The Vanguard Group, Inc. reduced its holdings by 1.5%.
- State Street Corporation maintained its position without any changes.
- Wellington Management Group LLP increased its stake by 1.0%.
- Invesco Ltd. saw a decrease of 0.5% in its holdings.
Impact of Institutional Investors
Institutional investors play a crucial role in the stock price and strategy of Plexus Corp. Their influence can be seen in the following areas:
- Institutional ownership often correlates with increased stock price stability and liquidity.
- These investors typically engage in active dialogue with company management, influencing strategic decisions.
- High institutional ownership can signal investor confidence, attracting additional retail investors.
- Changes in institutional holdings can lead to significant movements in stock price, especially if large investors sell or buy large quantities of shares.
Key Investors and Their Influence on Plexus Corp. (PLXS)
Key Investors and Their Impact on Plexus Corp. (PLXS)
Notable investors in Plexus Corp. include major institutional investors and funds such as The Vanguard Group, BlackRock, and State Street Corporation. These firms collectively hold significant stakes in the company, influencing its strategic direction and market performance.
As of the latest report, The Vanguard Group holds approximately 9.8% of the total shares outstanding, while BlackRock owns around 9.7%. State Street Corporation follows closely with an ownership of 7.5%. These large institutional investors often engage in shareholder advocacy, pushing for improved governance practices and operational efficiencies.
| Investor | Ownership Percentage | Stake Value (Approx.) |
|---|---|---|
| The Vanguard Group | 9.8% | $138 million |
| BlackRock | 9.7% | $137 million |
| State Street Corporation | 7.5% | $105 million |
Investor influence is palpable in Plexus Corp.'s decision-making processes. For instance, the board of directors regularly engages with these institutional investors to align corporate strategy with shareholder interests. This engagement often results in changes to capital allocation strategies and operational focuses, particularly in areas promising higher returns.
Recently, notable moves by these investors include BlackRock's increase in its stake by 2.1% over the past year, signaling confidence in the company's growth trajectory. Additionally, Vanguard has been actively participating in shareholder meetings, advocating for sustainability initiatives, which have become increasingly important in investor evaluations.
In fiscal year 2024, Plexus reported record free cash flow of $341 million, which was significantly influenced by these investors' strategies to optimize capital allocation. The company also executed a share repurchase program amounting to $55.7 million at an average price of $103.81 per share, reflecting a strong commitment to enhancing shareholder value.
| Fiscal Year | Free Cash Flow | Share Repurchase Amount | Average Repurchase Price |
|---|---|---|---|
| 2024 | $341 million | $55.7 million | $103.81 |
Overall, the actions of these key investors not only provide financial backing but also shape the strategic landscape of Plexus Corp. Their influence is crucial in guiding the company through evolving market conditions and competitive pressures.
Market Impact and Investor Sentiment of Plexus Corp. (PLXS)
Market Impact and Investor Sentiment
Investor Sentiment: The current sentiment of major shareholders toward Plexus Corp. is largely positive. The company has demonstrated strong financial performance, which has bolstered investor confidence. Recent earnings reports have shown significant growth in revenue and net income, contributing to a favorable outlook among investors.
Recent Market Reactions: The stock market has reacted positively to changes in ownership and large investor moves. Following the announcement of a $50 million share repurchase program for fiscal 2025, shares traded at an average price of $117.91 per share, indicating strong demand and confidence in the company’s future.
In the fiscal fourth quarter of 2024, Plexus reported revenues of $1.05 billion, surpassing market expectations. This performance led to a favorable adjustment in stock price, reflecting positive investor sentiment.
Analyst Perspectives
Analysts have provided optimistic insights regarding the impact of key investors on Plexus Corp.'s future. The company's return on invested capital (ROIC) was reported at 11.8%, which is significantly above its weighted average cost of capital of 8.2%, resulting in an economic return of 3.6%. This strong performance metrics have led analysts to foresee continued growth in the aerospace and defense sectors, which are expected to drive future revenues.
Analysts have highlighted that the company won 26 manufacturing programs representing an annualized revenue of $230 million when fully ramped into production, further solidifying the positive outlook.
| Financial Metric | Q4 FY2024 | Q3 FY2024 | Q4 FY2023 |
|---|---|---|---|
| Revenue | $1,050,569 | $960,751 | $1,023,947 |
| Net Income | $41,221 | $25,140 | $40,261 |
| Diluted EPS | $1.48 | $0.91 | $1.44 |
| Operating Margin | 5.1% | 4.1% | 5.2% |
| Free Cash Flow | $194 million | N/A | N/A |
In conclusion, analysts remain bullish on Plexus Corp., citing strong fundamentals and a robust market position, particularly in the aerospace and defense sectors, which are expected to continue to grow in the coming years.
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Article updated on 8 Nov 2024
Resources:
- Plexus Corp. (PLXS) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Plexus Corp. (PLXS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Plexus Corp. (PLXS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.