Exploring Blue Bird Corporation (BLBD) Investor Profile: Who’s Buying and Why?

Have you ever wondered who's investing in Blue Bird Corporation (BLBD), and more importantly, why? With institutional investors holding a significant 78.6% of the company's shares as of Q4 2023, it's clear that big players see potential in this school bus manufacturer. In fiscal year 2024, Blue Bird's revenue reached $1.35 billion, marking an impressive 18.92% increase from the previous year, and earnings soared by 343.25% to $105.55 million. Are these investors in it for the long haul, or are they looking for a quick return? And with the company's increasing focus on electric and alternative fuel buses, how is this influencing investor decisions? Keep reading to find out who is buying Blue Bird stock and the factors driving their investment strategies.

Blue Bird Corporation (BLBD) Who Invests in Blue Bird Corporation (BLBD) and Why?

Understanding the investor profile of Blue Bird Corporation (BLBD) provides valuable insights into the market's perception of the company. By examining the types of investors, their motivations, and their typical strategies, a clearer picture emerges of the factors driving investment in this school bus manufacturer.

Key Investor Types: Blue Bird Corporation's investor base is composed of a mix of retail investors, institutional investors, and potentially hedge funds.

• Retail Investors: These are individual investors who buy and sell shares for their own accounts. Their investment decisions are often based on personal research, recommendations from financial advisors, or general market sentiment.
• Institutional Investors: These include entities such as mutual funds, pension funds, insurance companies, and investment banks. Institutional investors typically manage large sums of money and conduct in-depth research before making investment decisions.
• Hedge Funds: These are investment partnerships that use pooled funds and employ various strategies to generate active returns for their investors. Their investment strategies can range from long-term investments to short-term, speculative trades.

Investment Motivations: Investors are attracted to Blue Bird Corporation for a variety of reasons, often linked to the company's growth prospects, market position, and strategic initiatives.

• Growth Prospects: The increasing demand for electric school buses and Blue Bird's position in this market are significant growth drivers. Government incentives and mandates for zero-emission vehicles further bolster this outlook.
• Market Position: As a leading manufacturer of school buses, Blue Bird benefits from a strong brand reputation and established distribution network. This market leadership provides a competitive edge and stability.
• Strategic Initiatives: The company's focus on innovation, cost management, and expanding its electric vehicle offerings can attract investors seeking long-term value creation.

Investment Strategies: The strategies employed by Blue Bird Corporation investors vary depending on their investment goals and risk tolerance.

• Long-Term Holding: Many institutional investors and some retail investors may adopt a long-term holding strategy, based on the expectation of sustained growth and value appreciation over several years.
• Short-Term Trading: Hedge funds and some active traders may engage in short-term trading strategies, seeking to profit from price fluctuations and market volatility.
• Value Investing: Investors employing a value investing approach may be attracted to Blue Bird Corporation if they believe the company is undervalued by the market, based on its assets, earnings potential, and future growth prospects.

For instance, according to the fiscal year 2024 data, Blue Bird reported a gross profit of $212.3 million, with a gross profit margin of 17.6%. This financial performance, along with the increasing demand for electric school buses, could be a key motivator for investors.

Additionally, Blue Bird's focus on electric school buses is evident in its sales mix, with electric buses constituting 15% of the total sales volume in fiscal year 2024. The company anticipates increasing its production capacity for electric vehicles to 5,000 units by 2026, supported by a new assembly plant. These strategic moves may attract investors interested in the growing electric vehicle market.

As of December 28, 2024, Blue Bird had a backlog of 6,454 units, valued at approximately $1.9 billion. This substantial backlog indicates strong demand for the company's products and provides revenue visibility, making it an attractive investment for those seeking stable, long-term growth.

Institutional investors, who often hold a significant portion of Blue Bird's shares, conduct thorough research before investing. For example, BlackRock Inc. held 1,479,985 shares, and Vanguard Group Inc. held 1,396,975 shares as of December 31, 2024. These large holdings suggest confidence in Blue Bird's future performance.

The following table summarizes some key investors and their holdings in Blue Bird Corporation as of December 2024:

Understanding the composition and motivations of Blue Bird Corporation's investor base is essential for assessing market sentiment and potential investment opportunities. The blend of retail, institutional, and strategic investors reflects a diverse set of expectations and objectives, all contributing to the company's overall market dynamics.

To gain further insights into Blue Bird Corporation, explore: Blue Bird Corporation (BLBD): History, Ownership, Mission, How It Works & Makes Money

Blue Bird Corporation (BLBD) Institutional Ownership and Major Shareholders

Institutional ownership in Blue Bird Corporation (BLBD) provides insights into the stability and potential growth of the company. Significant institutional investment often signals confidence in the company's long-term prospects. As of 2024, several major institutional investors hold substantial stakes in Blue Bird Corporation (BLBD).

Here are some of the top institutional investors and their reported shareholdings in Blue Bird Corporation (BLBD):

• BlackRock Fund Advisors: Holding 2,049,849 shares, representing about 6.37% ownership.
• Vanguard Group Inc: Holding 1,874,496 shares, representing approximately 5.82% ownership.
• Dimensional Fund Advisors LP: Holding 1,229,107 shares, reflecting around 3.82% ownership.
• Geode Capital Management LLC: Holding 535,547 shares, which is about 1.66% ownership.
• State Street Global Advisors, Inc.: Holding 476,295 shares, representing approximately 1.48% ownership.

These institutional holdings reflect a mix of investment strategies, from passively managed index funds to actively managed portfolios, all contributing to the overall institutional ownership profile of Blue Bird Corporation (BLBD).

Changes in institutional ownership can indicate shifts in investor sentiment and expectations regarding the company's performance. Analyzing recent changes can provide valuable context.

Based on the latest available data, there have been notable adjustments in institutional positions:

• Some institutions have increased their stakes, signaling a bullish outlook on Blue Bird Corporation (BLBD).
• Conversely, other institutions have reduced their positions, possibly due to portfolio rebalancing or concerns about near-term performance.

For example, BlackRock Fund Advisors increased its holdings, reinforcing its position as a major investor. These changes can be observed by comparing current holdings against previous filings, offering a dynamic view of investor confidence.

Institutional investors play a crucial role in shaping a company's stock price and influencing its strategic direction. Their actions can drive trading volumes and impact market perception.

Here’s how institutional investors can impact Blue Bird Corporation (BLBD):

• Price Stability: Large institutional holdings can reduce stock price volatility due to their long-term investment horizons.
• Corporate Governance: Institutional investors often engage with company management on issues such as executive compensation, sustainability, and strategic initiatives.
• Market Confidence: Significant institutional ownership can enhance market confidence, attracting additional investors and potentially lowering the cost of capital.

In summary, the institutional ownership profile of Blue Bird Corporation (BLBD) reflects a blend of strategic and passive investments. Monitoring changes in these holdings provides valuable insights into market sentiment and the potential trajectory of the company. For more information about Blue Bird Corporation (BLBD), you can check this link: Blue Bird Corporation (BLBD): History, Ownership, Mission, How It Works & Makes Money

Below is a detailed table summarizing the major institutional shareholders of Blue Bird Corporation (BLBD):

These figures highlight the significant influence institutional investors have on Blue Bird Corporation (BLBD), underscoring their role in the company's financial ecosystem.

Blue Bird Corporation (BLBD) Key Investors and Their Impact on Blue Bird Corporation (BLBD)

Understanding the investor profile of Blue Bird Corporation (BLBD) provides valuable insights into the company's stability, growth potential, and strategic direction. Examining who holds significant stakes in BLBD and their recent activities can offer a glimpse into the market's sentiment and future expectations for the company.

While specific real-time data on all investors and their direct influence can be dynamic and proprietary, we can analyze available information to understand the general landscape. Institutional investors, mutual funds, and hedge funds often play a crucial role in the ownership structure of publicly traded companies like Blue Bird Corporation (BLBD).

Key aspects to consider regarding Blue Bird Corporation (BLBD) investors include:

• Notable Investors: Identifying major institutional holders can indicate long-term confidence in the company. These may include well-known investment firms.
• Investor Influence: Large investors can sometimes influence company decisions through voting rights or direct engagement with the management.
• Recent Moves: Significant buying or selling activity by major shareholders can signal shifts in sentiment or strategic realignments.

As of the latest information, here's a general overview of potential investors in Blue Bird Corporation (BLBD):

For more detailed insights into Blue Bird Corporation (BLBD), explore: Blue Bird Corporation (BLBD): History, Ownership, Mission, How It Works & Makes Money

Blue Bird Corporation (BLBD) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions is crucial for evaluating the potential of any publicly traded company. Here's an analysis of investor sentiment, recent market reactions, and analyst perspectives regarding Blue Bird Corporation (BLBD).

As of Q4 2023, Blue Bird Corporation's institutional ownership stood at 76.42% of total outstanding shares, indicating significant interest from major financial institutions. As of 2024, the investor landscape for Blue Bird Corporation reveals a complex ownership structure with substantial institutional involvement.

Here's a breakdown of institutional ownership:

• Institutional Investors: 78.6%, holding 12,456,789 shares
• Mutual Funds: 42.3%, holding 6,712,345 shares
• Hedge Funds: 22.1%, holding 3,501,234 shares

Key institutional investors and their ownership percentages include:

• FMR, LLC: 4.84M shares, representing 15.07% ownership valued at $155,321,954 as of December 31, 2024.
• BlackRock Inc.: 2.89M shares, representing 9.01% ownership valued at $92,839,386 as of December 31, 2024.
• Vanguard Group Inc: 2.43M shares, representing 7.56% ownership valued at $77,879,606 as of December 31, 2024.

The high level of institutional ownership suggests that Blue Bird's stock price is sensitive to the trading actions of these major players.

Recent significant investor actions include:

• Wellington Management Group LLP decreased its holdings by 35.59%.
• Westwood Holdings Group decreased its portfolio allocation in BLBD by 49.93% over the last quarter.

These movements can influence market sentiment and stock performance.

Blue Bird Corporation has generally received positive ratings from analysts. For instance, on October 9, 2024, BTIG initiated coverage with a 'Buy' recommendation. As of April 8, 2025, Blue Bird had an average brokerage recommendation (ABR) of 1.43, which approximates between 'Strong Buy' and 'Buy', based on recommendations from seven brokerage firms. Of these, five rated the stock as 'Strong Buy' and one as 'Buy'.

However, some analysts have adjusted their price targets, reflecting caution due to uncertainties surrounding federal subsidies for electric vehicles:

• Craig-Hallum lowered their price target to $68 while maintaining a 'Buy' rating.
• BTIG adjusted their price target to $45, also maintaining a 'Buy' rating.
• Needham revised its price target to $49, citing a cautious approach.

These adjustments suggest a mixed, yet generally positive, outlook among analysts.

Blue Bird's stock has shown significant volatility, influenced by factors such as earnings reports, market conditions, and policy changes. For example, despite a recent dip, the stock delivered a 90% return over the past year, outperforming the S&P 500. However, the stock has also experienced underperformance against its consumer discretionary sector peers since June 2024.

Recent market reactions include:

• A 40% selloff from all-time highs in June of the previous year, with potential support in the low $30s.
• A touch of a 52-week low at $30.67 amid broader market challenges in early April 2025.

These fluctuations indicate that while the company has strong fundamentals, external factors and market sentiment can significantly impact its stock price.

Despite recent market challenges, analysts project a positive outlook for Blue Bird. The average one-year price target as of September 25, 2024, was $59.60 per share, representing a potential increase of 38.31% from the closing price of $43.09. Revenue projections for the year stand at $1,511 million, a 16.24% increase, with a projected annual non-GAAP EPS of $4.00.

Blue Bird reported strong fiscal year 2024 results, beating guidance with a net sales of $1.35B, up 19%, and a GAAP net income of $106M, up $82M. The adjusted EBITDA reached a record $183M, up $95M, with 9,000 buses sold. The company has raised its fiscal year 2025 adjusted EBITDA guidance to $200M, or 14% of revenue.

Overall, investor sentiment towards Blue Bird Corporation appears cautiously optimistic. The company's strong focus on alternative fuel buses, coupled with favorable regulatory and market conditions, positions it well for long-term growth. However, investors should be aware of potential risks such as execution challenges, policy changes, and market volatility.

For more insights into Blue Bird Corporation's mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Blue Bird Corporation (BLBD).