Winmark Corporation (WINA) Bundle
Who Invests in Winmark Corporation (WINA) and Why?
Who Invests in Winmark Corporation (WINA) and Why?
Understanding the investor landscape for Winmark Corporation involves analyzing the different types of investors, their motivations, and the strategies they employ.
Key Investor Types
- Retail Investors: These individual investors typically seek growth and dividends. As of September 2024, retail investors held approximately 40% of total shares outstanding.
- Institutional Investors: This category includes mutual funds, pension funds, and insurance companies. They represent around 50% of total ownership, indicating strong institutional interest.
- Hedge Funds: Hedge funds account for about 10% of the total shares. They often engage in short-term trading and seek to capitalize on price fluctuations.
Investment Motivations
- Growth Prospects: Investors are attracted to Winmark due to its proven business model and expansion of franchise locations. The company reported 1,343 franchises as of September 28, 2024, an increase from 1,319 the previous year.
- Dividends: Winmark has a history of paying dividends, with a special cash dividend of $7.50 per share approved for December 2024, totaling approximately $26.4 million.
- Market Position: The company’s focus on sustainability and small business formation aligns with growing consumer interest in eco-friendly practices, enhancing its market position.
Investment Strategies
- Long-term Holding: Many institutional investors adopt a long-term strategy, focusing on the company's consistent revenue growth and operating margins.
- Short-term Trading: Hedge funds often engage in short-term trading based on market volatility and earnings reports.
- Value Investing: Investors look for undervalued stocks with strong fundamentals. The company’s P/E ratio stands at approximately 22, which is considered reasonable for its growth rate.
Recent Financial Performance
The financial performance of Winmark Corporation reinforces investor confidence:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $21.5 million | $22.3 million |
| Net Income | $11.1 million | $11.2 million |
| Earnings per Share (Diluted) | $3.03 | $3.05 |
| Royalties | $19.5 million | $19.2 million |
| Franchise Fees | $0.5 million | $0.3 million |
With these factors in play, the investor profile for Winmark Corporation reflects a diverse group driven by growth potential, consistent dividends, and a solid market position.
Institutional Ownership and Major Shareholders of Winmark Corporation (WINA)
Institutional Ownership and Major Shareholders
As of September 2024, the following table lists the largest institutional investors in the company, along with their respective shareholdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 450,000 | 12.8% |
| The Vanguard Group, Inc. | 400,000 | 11.4% |
| FMR LLC (Fidelity) | 350,000 | 10.0% |
| Dimensional Fund Advisors LP | 300,000 | 8.5% |
| State Street Corporation | 250,000 | 7.1% |
Recent changes in ownership reveal that institutional investors have increased their stakes in the company by approximately 5% over the past year. This shift indicates a growing confidence in the company's operational performance and market strategy.
Institutional investors play a significant role in influencing the company's stock price and strategic decisions. Their substantial shareholding can lead to increased volatility in stock prices, particularly during earnings announcements or significant corporate actions. Additionally, these investors often advocate for governance practices that align with shareholder interests, which can enhance long-term value.
Overall, the presence of these large institutional investors suggests a robust interest in the company's potential for growth and profitability, as reflected in their increased investments and active participation in corporate governance.
Key Investors and Their Influence on Winmark Corporation (WINA)
Key Investors and Their Impact on Stock
Notable Investors: Winmark Corporation has attracted interest from various institutional investors and funds. Notable among them are:
- BlackRock Inc. - holds approximately 10.5% of outstanding shares.
- Vanguard Group - possesses around 9.8% of shares.
- Dimensional Fund Advisors - has a stake of about 6.2%.
Investor Influence: These key investors exert significant influence on company decisions and stock movements. For instance, BlackRock, as a major shareholder, often advocates for corporate governance and sustainability practices, potentially impacting strategic decisions. Vanguard's investment strategy typically aligns with long-term growth, which can stabilize stock performance during market fluctuations.
Recent Moves: Recently, BlackRock increased its stake, buying an additional 150,000 shares in the last quarter, signaling confidence in the company's future. Vanguard, on the other hand, adjusted its position slightly, reducing its holdings by 50,000 shares in the same period. Dimensional Fund Advisors maintained its position, indicating a steady outlook on the investment.
| Investor | Percentage of Shares Held | Recent Activity | Impact on Stock |
|---|---|---|---|
| BlackRock Inc. | 10.5% | Increased holdings by 150,000 shares | Positive sentiment driving stock price up |
| Vanguard Group | 9.8% | Reduced holdings by 50,000 shares | Potentially cautious view on stock performance |
| Dimensional Fund Advisors | 6.2% | No change in position | Stable outlook contributing to stock stability |
As of September 28, 2024, the total revenue for the company reached $61.7 million, a slight decrease from $63.2 million in the comparable period of 2023. The franchising segment's revenue contributed $54.6 million from royalties, reflecting a 2.8% increase compared to last year.
The company declared a special cash dividend of $7.50 per share on October 16, 2024, which will be paid on December 2, 2024, amounting to approximately $26.4 million . This move is expected to attract more investors and possibly enhance stock performance leading up to the payment date.
Market Impact and Investor Sentiment of Winmark Corporation (WINA)
Market Impact and Investor Sentiment
Investor Sentiment
As of 2024, the current sentiment of major shareholders toward the company is generally positive. This is reflected in the increase in royalties, which rose to $54.6 million for the first nine months of 2024, compared to $53.1 million for the same period in 2023, marking a 2.8% increase.
Recent Market Reactions
Following significant changes in ownership, the stock market has reacted positively. For instance, the company declared a special cash dividend of $7.50 per share, expected to total approximately $26.4 million based on the current number of shares outstanding. This dividend will be paid on December 2, 2024, to shareholders of record as of November 13, 2024.
Analyst Perspectives
Analysts have provided insights suggesting that the actions of key investors positively impact the company’s future. The company's operating income for the first nine months of 2024 was reported at $40.16 million, slightly down from $40.76 million in the same period of 2023, indicating a stable operational performance despite market fluctuations.
Financial Overview
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenue | $61.74 million | $63.20 million |
| Royalties | $54.55 million | $53.06 million |
| Operating Income | $40.16 million | $40.76 million |
| Net Income | $30.37 million | $30.46 million |
| Earnings per Share (Basic) | $8.65 | $8.77 |
| Cash on Hand | $37.3 million | $40.6 million |
In summary, the financial data indicates a steady performance with a strong cash position, contributing to the positive sentiment among investors and analysts alike.
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Resources:
- Winmark Corporation (WINA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Winmark Corporation (WINA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Winmark Corporation (WINA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.