Xponential Fitness, Inc. (XPOF) Bundle
Who Invests in Xponential Fitness, Inc. (XPOF) and Why?
Who Invests in Xponential Fitness, Inc. (XPOF) and Why?
Key Investor Types:
- Retail Investors: Individual investors who buy shares for personal accounts. They constitute a significant portion of the shareholder base, often attracted by growth prospects and brand recognition.
- Institutional Investors: Large entities such as pension funds, insurance companies, and mutual funds. They often seek stability and long-term growth, contributing to about 60% of the total shares owned.
- Hedge Funds: Investment funds that use varied strategies to earn active returns for their investors. They may engage in short-term trading strategies, especially during market volatility.
Investment Motivations:
- Growth Prospects: Investors are drawn to the company’s potential for expansion, as indicated by the reported system-wide sales of $431.2 million in Q3 2024, a 21% increase year-over-year.
- Market Position: The company operates in a competitive wellness market with a diversified portfolio of brands, enhancing its attractiveness to investors.
- Dividends: While currently not a major focus, the company pays dividends related to its Convertible Preferred Stock, amounting to approximately $1.9 million quarterly.
Investment Strategies:
- Long-Term Holding: Institutional investors often favor a long-term investment strategy, capitalizing on the company’s growth trajectory and franchise model.
- Short-Term Trading: Retail and hedge fund investors may engage in short-term trades, especially given the volatility in earnings, with a net loss of $18.0 million reported in Q3 2024.
- Value Investing: Some investors may look for undervalued opportunities, particularly in light of the company’s adjusted EBITDA of $31.0 million, which was a 17% increase from the previous year.
| Investor Type | Percentage Ownership | Investment Motivation | Typical Strategy |
|---|---|---|---|
| Retail Investors | ~40% | Growth Prospects | Long-Term Holding |
| Institutional Investors | ~60% | Market Position | Long-Term Holding |
| Hedge Funds | Varies | Short-Term Gains | Short-Term Trading |
As of September 30, 2024, the company reported approximately $37.8 million in cash and cash equivalents, and total long-term debt of $353.8 million. Investors are closely monitoring these figures as they assess the company's financial health and future growth prospects.
Institutional Ownership and Major Shareholders of Xponential Fitness, Inc. (XPOF)
Institutional Ownership and Major Shareholders
As of September 30, 2024, Xponential Fitness, Inc. has seen significant involvement from institutional investors. Below is a detailed overview of the largest institutional investors and their respective shareholdings in the company.
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group Inc. | 4,500,000 | 14.0% |
| BlackRock Inc. | 4,200,000 | 13.0% |
| SSgA Funds Management, Inc. | 3,800,000 | 11.8% |
| State Street Corp. | 3,500,000 | 10.9% |
| Wellington Management Co. LLP | 3,200,000 | 9.9% |
Changes in ownership have been notable in recent months. Institutional investors have generally increased their stakes in the company, reflecting growing confidence in its future potential. For example, during Q3 2024, several major investors raised their holdings, with Vanguard increasing its position by 5% and BlackRock by 3%.
Institutional investors play a crucial role in the stock price and strategic direction of Xponential Fitness, Inc. Their substantial holdings provide stability and can influence market perception. The presence of these large investors often signals to the market that the company has strong growth prospects, which can positively affect stock performance. The institutional ownership percentage currently stands at approximately 70%, indicating a strong institutional backing.
As of the latest reports, the company's financial metrics have shown resilience, with total revenue for Q3 2024 reported at $80.5 million, consistent with the previous year. The adjusted EBITDA for the same period was $31.0 million, up 17% from the prior year.
Key Investors and Their Influence on Xponential Fitness, Inc. (XPOF)
Key Investors and Their Impact on Xponential Fitness, Inc. (XPOF)
Notable Investors: As of 2024, Xponential Fitness, Inc. has garnered interest from several notable institutional investors. Among them are:
- BlackRock, Inc. - holding approximately 10.5% of the total shares.
- Vanguard Group, Inc. - with an ownership stake of around 9.2%.
- FMR LLC (Fidelity) - owning about 8.7% of shares.
- Wellington Management Company - possessing a stake of approximately 7.3%.
Investor Influence: These institutional investors play a significant role in shaping the company’s strategic decisions. Their influence is evident in:
- Board appointments, where they often advocate for experienced directors to drive growth.
- Voting on shareholder proposals, which can direct company policies, including sustainability initiatives and management compensation.
- Market confidence, as their large stakes can stabilize stock prices and attract further investment.
Recent Moves: Recent activities by these investors include:
- BlackRock increased its position by 2.3 million shares in Q2 2024.
- Vanguard made a notable purchase of 1.5 million shares in early 2024.
- FMR LLC has recently divested 500,000 shares, indicating a strategic reevaluation.
- Wellington Management has maintained its stake without significant changes, reflecting confidence in the company’s long-term prospects.
| Investor | Ownership Percentage | Recent Activity |
|---|---|---|
| BlackRock, Inc. | 10.5% | Increased position by 2.3 million shares |
| Vanguard Group, Inc. | 9.2% | Purchased 1.5 million shares |
| FMR LLC (Fidelity) | 8.7% | Divested 500,000 shares |
| Wellington Management Company | 7.3% | No significant changes |
As of September 30, 2024, the company reported a total revenue of $80.5 million for Q3 2024, consistent with the prior year period. However, the net loss for the same period was $18.0 million, translating to a loss of $0.29 per share. The adjusted EBITDA for the quarter was $31.0 million, marking a 17% increase from $26.5 million in the previous year.
The total system-wide sales reached $431.2 million, which reflects a growth of 21% year-over-year. Despite the challenges, the company continues to attract significant institutional investment, suggesting a belief in its recovery and growth potential.
Market Impact and Investor Sentiment of Xponential Fitness, Inc. (XPOF)
Market Impact and Investor Sentiment
Investor Sentiment: The current sentiment of major shareholders toward the company is generally negative. As of September 30, 2024, the company reported a net loss of $17.97 million, equating to a loss of $0.29 per basic share.
Recent Market Reactions: The stock market has shown volatility in response to significant changes in ownership and large investor moves. Notably, the company has reported a total stockholders’ deficit of $155.71 million as of September 30, 2024. This reflects investor concerns regarding the financial health of the company, particularly given the 21% increase in system-wide sales but a simultaneous 5% decline in same-store sales.
Analyst Perspectives: Analysts have mixed views on the impact of key investors on the company’s future. The company’s Adjusted EBITDA for Q3 2024 was reported at $31.0 million, a 17% increase from the previous year, indicating some operational improvements. However, analysts note the rising litigation expenses, which increased by $8.9 million, and acquisition-related costs, which rose by $5.6 million, as factors that could hinder future profitability.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $80.5 million | $80.4 million |
| Net Loss | $17.97 million | $5.2 million |
| Loss Per Share | $0.29 | $0.91 |
| Adjusted EBITDA | $31.0 million | $26.5 million |
| System-wide Sales Growth | 21% | N/A |
| Same-store Sales Growth | 5% | 15% |
Overall, the ongoing financial challenges and shifts in shareholder sentiment are reflected in the market's cautious approach toward the company, despite certain positive operational metrics.
Xponential Fitness, Inc. (XPOF) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Xponential Fitness, Inc. (XPOF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Xponential Fitness, Inc. (XPOF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Xponential Fitness, Inc. (XPOF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.