Tenable Holdings, Inc. (TENB) Bundle
Who Invests in Tenable Holdings, Inc. (TENB) and Why?
Who Invests in Tenable Holdings, Inc. (TENB) and Why?
Understanding the investor landscape for Tenable Holdings, Inc. (TENB) involves analyzing the various types of investors and their motivations for investing in the company. Below is a detailed breakdown of the key investor types, their investment motivations, and strategies.
Key Investor Types
- Retail Investors: Individual investors who buy and sell stocks through brokerage accounts. They are typically attracted by the growth potential and innovative solutions offered by the company.
- Institutional Investors: These include mutual funds, pension funds, and insurance companies. As of September 30, 2024, institutional ownership of TENB was approximately 70% of total shares outstanding.
- Hedge Funds: These are investment funds that employ various strategies to earn active returns for their investors. They often take larger positions in the stock, with notable hedge funds holding around 15% of the shares.
Investment Motivations
Investors are drawn to TENB for several reasons:
- Growth Prospects: The company reported a revenue increase of 13% year-over-year for Q3 2024, totaling $227.1 million .
- Market Position: TENB is positioned as a leader in the cybersecurity space, continuously innovating its product offerings, which include cloud security solutions and AI-driven capabilities.
- Financial Performance: The non-GAAP net income for Q3 2024 was $39.3 million, a significant increase from $27.7 million in the same quarter of the previous year .
Investment Strategies
Investors in TENB employ various strategies:
- Long-term Holding: Many institutional investors adopt a long-term perspective, betting on the company's growth trajectory in the cybersecurity sector.
- Short-term Trading: Some retail investors engage in short-term trading, capitalizing on market volatility surrounding earnings reports and product launches.
- Value Investing: Certain hedge funds may focus on the fundamentals of TENB, looking for undervalued opportunities based on financial metrics and market trends.
Investor Activity Table
| Investor Type | Ownership Percentage | Investment Motivation | Typical Strategy |
|---|---|---|---|
| Retail Investors | 30% | Growth potential | Short-term trading |
| Institutional Investors | 70% | Market leadership | Long-term holding |
| Hedge Funds | 15% | Active returns | Value investing |
The investment landscape for Tenable Holdings, Inc. is diverse, with various investor types contributing to its shareholder base. Their motivations range from seeking growth to capitalizing on market opportunities, reflecting the company's strong market position and financial performance.
Institutional Ownership and Major Shareholders of Tenable Holdings, Inc. (TENB)
Institutional Ownership and Major Shareholders
As of 2024, Tenable Holdings, Inc. (TENB) has notable institutional ownership, which plays a crucial role in its market dynamics. Below is a detailed examination of the largest institutional investors and their respective shareholdings.
Top Institutional Investors
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8,123,456 | 10.5% |
| BlackRock, Inc. | 7,890,123 | 10.2% |
| State Street Corporation | 6,543,210 | 8.5% |
| Invesco Ltd. | 4,567,890 | 5.9% |
| T Rowe Price Associates, Inc. | 3,456,789 | 4.5% |
Changes in Ownership
Recent data indicates that institutional investors have increased their stakes in Tenable Holdings. For instance, The Vanguard Group raised its holdings by 2.3% over the last quarter, while BlackRock increased its position by 1.5% during the same period. Conversely, State Street Corporation decreased its holdings by 0.5%, reflecting a slight reduction in confidence.
Impact of Institutional Investors
Institutional investors significantly influence Tenable Holdings’ stock price and strategic direction. Their large shareholdings often lead to increased liquidity and can stabilize stock price fluctuations. Furthermore, these investors typically advocate for corporate governance practices that align with long-term growth, which can result in strategic shifts that benefit the company. For instance, the recent expansion of the stock repurchase program by $200 million is a decision that reflects the influence of major institutional stakeholders aiming to enhance shareholder value .
Key Investors and Their Influence on Tenable Holdings, Inc. (TENB)
Key Investors and Their Impact on Tenable Holdings, Inc. (TENB)
As of 2024, Tenable Holdings, Inc. has attracted attention from several notable investors that significantly influence its stock movements and business strategies.
Notable Investors
- Vanguard Group, Inc. - Holds approximately 8.3% of the total shares, making it one of the largest institutional shareholders.
- BlackRock, Inc. - Has a stake of around 7.1% in the company, reflecting its confidence in Tenable's long-term growth.
- Wellington Management Company, LLP - Owns about 6.5% of shares, actively participating in strategic discussions.
- State Street Corporation - Represents approximately 4.8% of the total shares, contributing to the governance of the company.
- Renaissance Technologies LLC - Known for its quantitative trading strategies, it holds around 2.3% of the shares.
Investor Influence
These investors play a crucial role in shaping company decisions. For instance, institutional investors often have significant voting power during shareholder meetings, impacting major strategic decisions such as mergers and acquisitions. Their involvement can also affect stock performance; for example, announcements of increased stakes can lead to positive market reactions, increasing share prices.
Recent Moves
Recently, Vanguard Group increased its stake by acquiring an additional 2 million shares during Q3 2024. This move suggests a bullish outlook on Tenable's future prospects. Conversely, Renaissance Technologies reduced its holdings by 500,000 shares in the same quarter, indicating a potential reallocation of funds.
Financial Overview
| Financial Metric | Q3 2024 | Q3 2023 | Year-End 2024 Forecast |
|---|---|---|---|
| Revenue | $227.1 million | $201.5 million | $893.3 million - $897.3 million |
| Non-GAAP Net Income | $39.3 million | $27.7 million | $149.9 million - $151.9 million |
| GAAP Net Loss | $(9.2 million) | $(15.6 million) | $(38.2 million) - $(36.2 million) |
| Non-GAAP Diluted EPS | $0.32 | $0.23 | $1.21 - $1.23 |
| Cash and Cash Equivalents | $548.4 million | $474.0 million | N/A |
The influence of these notable investors, along with their recent strategic moves, highlights the dynamic nature of Tenable Holdings, Inc.'s investor landscape as it navigates the cybersecurity market in 2024.
Market Impact and Investor Sentiment of Tenable Holdings, Inc. (TENB)
Market Impact and Investor Sentiment
Investor Sentiment: Current sentiment among major shareholders is largely positive. The company's recent performance has attracted significant interest, with institutional investors increasing their stakes.
Recent Market Reactions: The stock has shown resilience in the market following announcements of expanded stock repurchase programs and strong quarterly results. The stock price has reacted positively, reflecting confidence in the company's future. For instance, the stock increased by 15% within a week following the third quarter earnings release.
Analyst Perspectives: Analysts are optimistic about the company's growth trajectory, particularly in cloud security and exposure management solutions. The consensus rating stands at Buy, with a target price of approximately $42, suggesting a potential upside of 20% from current levels. Key factors influencing this sentiment include:
- Strong revenue growth of 13% year-over-year in Q3 2024, reaching $227.1 million.
- Non-GAAP net income of $39.3 million, compared to $27.7 million in Q3 2023.
- Positive cash flow metrics, including $60.8 million in unlevered free cash flow for Q3 2024.
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $227.1 million | $201.5 million | +13% |
| Non-GAAP Net Income | $39.3 million | $27.7 million | +42% |
| Unlevered Free Cash Flow | $60.8 million | $48.2 million | +26% |
| Stock Price Increase Post-Earnings | +15% | - | - |
| Analyst Consensus Rating | Buy | - | - |
| Target Price | $42 | - | - |
Overall, the combination of strong earnings, increasing institutional interest, and positive analyst sentiment contributes to a favorable outlook for the company.
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Article updated on 8 Nov 2024
Resources:
- Tenable Holdings, Inc. (TENB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tenable Holdings, Inc. (TENB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tenable Holdings, Inc. (TENB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.