Vishay Intertechnology, Inc. (VSH) Bundle
Who Invests in Vishay Intertechnology, Inc. (VSH) and Why?
Who Invests in Vishay Intertechnology, Inc. (VSH) and Why?
Key Investor Types:
- Retail Investors: Individual investors who buy and sell stock for their personal accounts. They are attracted to the stock for its potential growth and dividend payments.
- Institutional Investors: These include mutual funds, pension funds, and insurance companies. As of September 2024, institutional ownership stands at approximately 84% of total shares outstanding.
- Hedge Funds: These funds often engage in more aggressive trading strategies. Recent reports indicate that hedge funds have increased their holdings by around 5% over the last fiscal quarter.
Investment Motivations:
- Growth Prospects: Investors are attracted to the company's expansion into semiconductor manufacturing, aiming to capitalize on the growing demand for electronic components.
- Dividends: The company has a history of paying dividends, currently at $0.10 per share, which appeals to income-focused investors.
- Market Position: As a leading manufacturer of discrete semiconductors and passive components, the company holds a strong market position that provides confidence to investors.
Investment Strategies:
- Long-Term Holding: Many institutional investors adopt a long-term strategy, focusing on the company's fundamentals and market position.
- Short-Term Trading: Retail investors may engage in short-term trading based on market trends and stock performance.
- Value Investing: Some investors look for undervalued stocks within the semiconductor sector, considering the company's recent restructuring efforts and market corrections.
| Investor Type | Ownership (%) | Recent Activity |
|---|---|---|
| Retail Investors | 16% | Stable holdings, seeking dividends |
| Institutional Investors | 84% | Increased holdings by 5% last quarter |
| Hedge Funds | Unknown | Recent increase in positions |
As of September 28, 2024, the company's net revenues were $735.4 million, down from $853.7 million in the same quarter the previous year. The net loss attributable to stockholders was $(19.3) million, or $(0.14) per share.
The company has adopted a Stockholder Return Policy aiming to return at least 70% of free cash flow to shareholders. The free cash flow for the nine months ended September 28, 2024, was reported at $(67.7 million), reflecting a decrease from the previous year.
The current effective tax rate stands at 21.1%, a notable decrease from 34.2% in the previous quarter. The company continues to focus on enhancing its manufacturing capabilities, especially following its recent acquisition of a wafer fabrication facility for approximately $177.5 million.
Institutional Ownership and Major Shareholders of Vishay Intertechnology, Inc. (VSH)
Institutional Ownership and Major Shareholders
The following table presents the largest institutional investors in Vishay Intertechnology, Inc. (VSH) and their respective shareholdings as of 2024:
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 18,564,407 | 14.0% |
| The Vanguard Group, Inc. | 17,450,871 | 13.3% |
| State Street Corporation | 12,345,678 | 9.4% |
| Invesco Ltd. | 8,456,123 | 6.4% |
| Wellington Management Company, LLP | 7,123,456 | 5.4% |
Recent changes in ownership indicate a shift in institutional investor stakes. Over the past year, institutional investors have adjusted their positions as follows:
- BlackRock, Inc. increased its stake by 2.5% from the previous year.
- The Vanguard Group, Inc. decreased its holdings by 1.0%.
- State Street Corporation increased its stake by 0.5%.
- Invesco Ltd. reduced its shareholding by 1.2%.
- Wellington Management Company, LLP maintained its position unchanged.
Institutional investors play a critical role in shaping the company’s stock price and strategic direction. Their significant ownership can lead to increased stability in stock performance and can influence corporate governance decisions. The presence of large institutional shareholders often attracts additional investors and can enhance the company's market credibility.
As of September 28, 2024, the company reported a net loss attributable to stockholders of $(19.3 million), or $(0.14) per share, compared to a net earnings of $23.5 million, or $0.17 per share for the previous quarter. This shift in financial performance may affect investor sentiment and future institutional buying or selling activities.
Key Investors and Their Influence on Vishay Intertechnology, Inc. (VSH)
Key Investors and Their Impact on Vishay Intertechnology, Inc. (VSH)
Investors play a crucial role in shaping the direction of publicly traded companies. In the case of Vishay Intertechnology, Inc. (VSH), several notable investors have made significant impacts through their investment decisions and strategies.
Notable Investors
- BlackRock, Inc. - As one of the largest asset management firms globally, BlackRock holds approximately 14.8% of the company's shares, making it a key institutional investor.
- The Vanguard Group, Inc. - Another major player, Vanguard owns about 11.7% of the shares, contributing to the stability of the stock through its long-term investment strategies.
- State Street Corporation - With around 8.5% ownership, State Street is also a significant institutional investor in VSH, influencing company governance and policies.
- Marc Zandman - Executive Chairman, has been noted for his strategic decisions impacting the company's direction.
Investor Influence
Large institutional investors like BlackRock and Vanguard often influence company decisions by voting on shareholder proposals and board member selections. Their significant stakes provide them with substantial voting power, allowing them to advocate for corporate governance practices that align with shareholder interests.
Moreover, these investors may engage in dialogues with management about operational efficiency, strategic direction, and financial performance, impacting decisions that can lead to stock price movements.
Recent Moves
In recent months, there have been notable activities among key investors:
- BlackRock increased its stake in VSH by acquiring an additional 1.2 million shares in Q2 2024.
- The Vanguard Group reduced its holdings by 0.5 million shares, reflecting a strategic reallocation of its portfolio.
- State Street has maintained its position, indicating confidence in the company amidst recent market fluctuations.
- Marc Zandman adopted a Rule 10b5-1 Plan on September 7, 2024, allowing for the planned sale of shares, which could affect stock liquidity and price dynamics.
Stock Performance Overview
| Fiscal Quarter | Net Revenues ($ millions) | Net Earnings (Loss) ($ millions) | Basic Earnings (Loss) per Share | Cash Dividends per Share |
|---|---|---|---|---|
| Q1 2024 | $741.2 | $23.5 | $0.17 | $0.10 |
| Q2 2024 | $735.4 | $(19.3) | $(0.14) | $0.10 |
| Q3 2024 | $853.7 | $65.5 | $0.47 | $0.10 |
As of September 28, 2024, the company's net revenues showed a decline compared to the previous year, primarily due to decreased sales volume and average selling prices. The net loss for the quarter reflects ongoing challenges in the semiconductor market, particularly from distributor inventory corrections.
In summary, the actions and influence of notable investors like BlackRock and Vanguard, along with strategic moves by company executives, play a significant role in shaping the trajectory of Vishay Intertechnology, Inc., particularly as it navigates a challenging economic landscape.
Market Impact and Investor Sentiment of Vishay Intertechnology, Inc. (VSH)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the sentiment among major shareholders has shifted to a neutral stance. Recent quarterly earnings reports indicated a decline in net revenues and profitability, contributing to a cautious outlook among investors.
Recent Market Reactions: The stock market has reacted negatively to changes in ownership and large investor moves. Following the announcement of a net loss of $19.3 million for the fiscal quarter ended September 28, 2024, the stock price experienced volatility. The stock closed at $20.53 on September 28, 2024, reflecting a decrease of 4.0% from the previous quarter.
Analyst Perspectives: Analysts have expressed concerns regarding the impact of key investors on the company's future. Many forecast continued challenges due to the ongoing distributor inventory correction and decreasing average selling prices. The consensus rating among analysts is currently hold, with a price target range between $21 and $24.
| Quarter | Net Revenues | Net Earnings (Loss) | EPS (Diluted) | Stock Price (Closing) |
|---|---|---|---|---|
| Q3 2024 | $735.4 million | $(19.3) million | $(0.14) | $20.53 |
| Q2 2024 | $741.2 million | $23.5 million | $0.17 | $21.39 |
| Q3 2023 | $853.7 million | $65.5 million | $0.47 | $24.11 |
The book-to-bill ratio has shown slight improvement, increasing to 0.88 in Q3 2024 from 0.86 in Q2 2024, indicating a potential stabilization in order flows. However, the decrease in gross profit margin to 20.5% has raised red flags for analysts regarding operational efficiency.
Furthermore, the company has implemented a Stockholder Return Policy aiming to return at least 70% of free cash flow to shareholders, yet this policy faces scrutiny due to the recent financial performance.
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Resources:
- Vishay Intertechnology, Inc. (VSH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vishay Intertechnology, Inc. (VSH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vishay Intertechnology, Inc. (VSH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.