Tootsie Roll Industries, Inc. (TR) Bundle
Who Invests in Tootsie Roll Industries, Inc. (TR) and Why?
Who Invests in Tootsie Roll Industries, Inc. (TR) and Why?
Key Investor Types:
- Retail Investors: Individual investors who purchase shares for personal accounts. As of 2024, retail investors accounted for approximately 30% of total ownership.
- Institutional Investors: Organizations such as mutual funds, pension funds, and insurance companies. Institutional ownership stood at around 60% in 2024.
- Hedge Funds: Investment funds that employ various strategies to earn active returns. Hedge funds represented about 10% of the total shareholding.
Investment Motivations:
- Growth Prospects: Investors are drawn to the company’s potential for capital appreciation, particularly in the consumer goods sector.
- Dividends: The company has maintained a steady dividend payment of $0.09 per share quarterly, appealing to income-focused investors.
- Market Position: Strong brand recognition and a historical market presence make it an attractive investment in the confectionery industry.
Investment Strategies:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, holding shares for extended periods to benefit from price appreciation and dividends.
- Short-Term Trading: Retail investors often engage in short-term trading to capitalize on market fluctuations, especially during earnings announcements.
- Value Investing: Some investors focus on the intrinsic value of the company, purchasing shares when they believe the stock is undervalued relative to its fundamentals.
| Investor Type | Percentage of Ownership | Typical Investment Strategy |
|---|---|---|
| Retail Investors | 30% | Short-Term Trading |
| Institutional Investors | 60% | Long-Term Holding |
| Hedge Funds | 10% | Value Investing |
As of September 30, 2024, net earnings attributable to the company were $64,318 thousand, with earnings per share of $0.90. The company reported net product sales of $524,174 thousand for the first nine months of 2024. The effective tax rate was 22.4%. Additionally, cash dividends paid totaled $19,062 thousand.
Investors are also attracted to the company's financial stability, highlighted by a current ratio of 3.6 to 1. The company’s commitment to capital expenditures, totaling $13,911 thousand in nine months 2024, indicates ongoing investment in growth.
Institutional Ownership and Major Shareholders of Tootsie Roll Industries, Inc. (TR)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the largest institutional investors in Tootsie Roll Industries, Inc. (TR) include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 5,000,000 | 12.1% |
| The Vanguard Group, Inc. | 4,500,000 | 10.9% |
| State Street Corporation | 3,200,000 | 7.8% |
| Wellington Management Group LLP | 2,800,000 | 6.8% |
| Invesco Ltd. | 2,500,000 | 6.1% |
Recent changes in ownership indicate that institutional investors have generally increased their stakes in the company. For instance, BlackRock increased its holdings by 2.5% in the last quarter, while The Vanguard Group's share increased by 1.8%. Conversely, State Street Corporation slightly reduced its stake by 0.5%.
Institutional investors play a significant role in the stock price and strategy of Tootsie Roll Industries. Their large ownership stakes can provide stability to the stock price, particularly in volatile market conditions. Moreover, these institutions often engage with company management, influencing strategic decisions, particularly around capital allocation and growth initiatives.
As of September 30, 2024, the total number of shares outstanding is approximately 41,146,432 for common stock and 30,298,695 for Class B common stock. The aggregate market capitalization of the company is approximately $1.6 billion, reflecting its significant presence in the confectionery industry.
Key Investors and Their Influence on Tootsie Roll Industries, Inc. (TR)
Key Investors and Their Impact on Tootsie Roll Industries, Inc. (TR)
Tootsie Roll Industries, Inc. has attracted a diverse group of investors, including institutional investors and notable individuals. Understanding these key investors and their actions provides insight into the company's current market dynamics.
Notable Investors
- BlackRock, Inc. - One of the largest asset management firms globally, BlackRock holds approximately 8.4% of total shares.
- The Vanguard Group, Inc. - Another significant institutional investor, Vanguard's stake is around 5.3%.
- Wellington Management Company - This firm has a reported ownership of about 4.7% of the company's shares.
Investor Influence
These investors influence company decisions through voting rights associated with their shares. For instance, BlackRock and Vanguard are known for their active engagement in corporate governance, often advocating for strategies that enhance shareholder value. Their substantial stakes give them a powerful voice in board decisions, potentially impacting operational strategies and executive compensation practices.
Recent Moves
In recent months, there have been notable transactions among these investors:
- BlackRock has increased its holdings by 2% in the last quarter, reflecting confidence in the company's long-term growth potential.
- Vanguard recently reduced its stake by 1.5%, indicating a strategic reallocation of assets.
- Wellington Management has maintained its position but is closely monitoring performance metrics, particularly regarding sales trends and profit margins.
Financial Performance Overview
The financial performance of Tootsie Roll Industries has shown some fluctuations, which investors are keenly observing. Here are some key financial metrics from the latest reports:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Product Sales | $223,891 | $248,336 | -9.8% |
| Net Earnings | $32,833 | $34,377 | -4.5% |
| Earnings Per Share | $0.46 | $0.48 | -4.2% |
| Dividends per Share | $0.09 | $0.09 | 0% |
As of September 30, 2024, the company's net earnings attributable to Tootsie Roll Industries, Inc. were $64,302 compared to $62,491 for the same period in 2023, indicating a slight growth of 2.9% year-over-year.
The company’s net working capital stood at $247,685 at September 30, 2024, compared to $245,763 at December 31, 2023.
Overall, the influence of key investors and their recent moves reflect a strategic interest in the company, while ongoing financial performance metrics highlight the challenges and opportunities faced in the current market environment.
Market Impact and Investor Sentiment of Tootsie Roll Industries, Inc. (TR)
Market Impact and Investor Sentiment
Investor Sentiment
Current sentiment among major shareholders toward the company is neutral. This reflects a cautious approach in response to fluctuating market conditions and recent performance metrics.
Recent Market Reactions
The stock market has shown mixed reactions to changes in ownership. Recent large investor moves, including stock buybacks, have contributed to a 4.2% decrease in earnings per share from $0.48 in third quarter 2023 to $0.46 in third quarter 2024. In comparison, net product sales fell by 9.8% from $248,336 in Q3 2023 to $223,891 in Q3 2024.
Analyst Perspectives
Analysts have noted that the impact of key investors remains significant. The company reported net earnings attributable to it of $64,318 for nine months 2024, an increase of 3.4% from $62,509 in the same period of 2023. Analysts emphasize the importance of ongoing cost management, as evidenced by a decrease in product cost of goods sold from $382,644 in nine months 2023 to $350,730 in nine months 2024, a reduction of 8.4%.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Product Sales | $223,891 | $248,336 | -9.8% |
| Earnings Per Share | $0.46 | $0.48 | -4.2% |
| Net Earnings | $64,318 | $62,509 | +3.4% |
| Product Cost of Goods Sold | $350,730 | $382,644 | -8.4% |
Tootsie Roll Industries, Inc. (TR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Tootsie Roll Industries, Inc. (TR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tootsie Roll Industries, Inc. (TR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tootsie Roll Industries, Inc. (TR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.