Exploring Schlumberger Limited (SLB) Investor Profile: Who’s Buying and Why?

Who Invests in Schlumberger Limited (SLB) and Why?

Who Invests in Schlumberger Limited (SLB) and Why?

The investor landscape for Schlumberger Limited (SLB) is diverse, encompassing various types of investors who are attracted to the company's financial performance, strategic initiatives, and market position.

Key Investor Types

• Retail Investors: Individual investors who trade shares on their own account. They tend to be attracted by the potential for capital appreciation and dividends.
• Institutional Investors: These include pension funds, mutual funds, and insurance companies that invest large sums of money. They often focus on long-term growth and stability.
• Hedge Funds: These funds typically employ various strategies to generate high returns, including short selling and leverage. They may invest in SLB for both short-term trading opportunities and long-term value.

Investment Motivations

Investors are drawn to SLB for several reasons:

• Growth Prospects: The company has demonstrated strong revenue growth, with total revenue reaching $27.0 billion for the nine months ended September 30, 2024, a 12% increase year-on-year.
• Dividends: SLB announced a 10% increase in its quarterly cash dividend from $0.25 to $0.275 per share, effective April 2024.
• Market Position: SLB is a leading provider of technology and services for oil and gas exploration and production, which positions it favorably in a recovering energy market.

Investment Strategies

Investors adopt various strategies when investing in SLB:

• Long-term Holding: Many institutional investors hold SLB shares for extended periods to benefit from its growth and dividend payouts.
• Short-term Trading: Retail and hedge fund investors may engage in short-term trading to capitalize on market volatility and price fluctuations.
• Value Investing: Some investors recognize SLB's potential undervaluation relative to its earnings and cash flow, making it an attractive target for value-oriented strategies.

Investor Composition Table

As of September 30, 2024, SLB had cumulatively repurchased approximately $3.0 billion of its common stock under its $10 billion share repurchase program.

In terms of financial performance, SLB reported a net income attributable to the company of $3.366 billion for the nine months ending September 30, 2024.

With a robust operational framework and favorable market conditions, SLB continues to attract a wide array of investors driven by distinct motivations and strategies.

Institutional Ownership and Major Shareholders of Schlumberger Limited (SLB)

Institutional Ownership and Major Shareholders

As of the end of September 2024, the largest institutional shareholders of Schlumberger Limited (SLB) include:

In recent months, there have been notable changes in institutional ownership:

• Vanguard Group increased its stake by 1.5% in the last quarter.
• BlackRock, Inc. reduced its holdings by 0.5%.
• State Street Corporation maintained its position without significant changes.
• Fidelity Investments increased its stake by 0.7%.
• Capital Research Global Investors reduced its stake by 0.3%.

Institutional investors play a critical role in the stock price and overall strategy of SLB:

• They contribute to stock price stability through large shareholdings.
• Active involvement in corporate governance can influence strategic decisions.
• They often engage in shareholder activism, pushing for changes that can enhance shareholder value.

As of September 30, 2024, the total net debt of SLB is reported at $8.461 billion, reflecting a decrease from previous periods. The company also announced a 10% increase in its quarterly cash dividend, raising it from $0.25 to $0.275 per share, effective April 2024.

Key Investors and Their Influence on Schlumberger Limited (SLB)

Key Investors and Their Impact on Stock

As of 2024, several notable investors have emerged as significant players in the stock of the company in question. These include well-known funds and influential individuals whose investment strategies and decisions can heavily influence stock performance and company governance.

Notable Investors

• Vanguard Group - One of the largest shareholders, holding approximately 8.9% of the total shares as of the latest reports.
• BlackRock, Inc. - Another major institutional investor with a stake of about 7.5%.
• State Street Global Advisors - Holding around 4.2% of the shares, contributing to significant institutional ownership.
• Wellington Management - Known for active management, they own approximately 3.8% of the company.

Investor Influence

These investors play a critical role in shaping company decisions. For instance, Vanguard and BlackRock often advocate for corporate governance reforms and sustainability initiatives, which can lead to changes in management practices and strategic direction. Their influence can also result in increased shareholder engagement and the push for higher dividends or share buybacks.

Recent Moves

In recent months, several key moves have been noted:

• In October 2024, Vanguard increased its stake by acquiring an additional 1.5 million shares, signaling confidence in the company’s growth prospects.
• BlackRock has reduced its position slightly, selling approximately 500,000 shares in September 2024, possibly due to portfolio rebalancing.
• Wellington Management has been active in purchasing shares, increasing its stake by 300,000 shares in the past quarter.

Share Repurchase Program

The company has been actively repurchasing shares, which is often viewed favorably by investors:

As of September 30, 2024, the cumulative amount spent on the share repurchase program has reached approximately $3.0 billion.

These investment dynamics reflect the confidence of institutional investors in the company's strategic direction and financial health, which is crucial for maintaining stock price stability and growth.

Market Impact and Investor Sentiment of Schlumberger Limited (SLB)

Market Impact and Investor Sentiment

Investor Sentiment: As of early 2024, the sentiment among major shareholders towards the company is generally positive. This is reflected in the increase in quarterly cash dividends by 10% from $0.25 to $0.275 per share, effective April 2024.

Recent Market Reactions: The stock market has shown a favorable response to significant ownership changes. Notably, during the first nine months of 2024, the company repurchased approximately $1.236 billion worth of shares at an average price of $46.47 per share. The following table summarizes the share repurchase activity:

The cumulative share repurchase under the $10 billion program reached approximately $3.0 billion as of September 30, 2024.

Analyst Perspectives: Analysts are optimistic about the impact of key investors on the company's future. The company reported a revenue of $9.2 billion for the third quarter of 2024, which was stable compared to the previous quarter. The revenue breakdown is as follows:

Analysts note that the company is well-positioned to navigate market conditions, particularly in long-cycle projects in international markets. Overall, the positive sentiment and strategic financial decisions suggest a robust outlook for the company in 2024.

Article updated on 8 Nov 2024

Resources:

• Schlumberger Limited (SLB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Schlumberger Limited (SLB)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Schlumberger Limited (SLB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.