Exploring Frequency Electronics, Inc. (FEIM) Investor Profile: Who’s Buying and Why?

You're looking at Frequency Electronics, Inc. (FEIM) after its incredible run-the stock has surged over 106% in the last 12 months, and you need to know who is driving that momentum and why they're buying in. Is this a retail-led frenzy or a conviction play by the smart money? Honestly, it's the latter: institutional investors, including powerhouses like BlackRock, Inc. and Vanguard Group Inc., own a significant stake, with the institutional ownership percentage sitting near 58.60%. This is not a defintely a stock that moves on individual sentiment alone; it's sensitive to the actions of big players, especially with hedge funds holding around 19%. For all this big-money backing, the company's recent performance shows a complex picture: while Q4 Fiscal Year 2025 revenue jumped 28.3% to $19.9 million, Q1 Fiscal Year 2026 consolidated revenue dipped to $13.8 million. So, with the market capitalization at approximately $275.12 million and a fully funded backlog of $71 million, are these institutions betting on the long-term defense and quantum sensing story, or are they just playing the short-term contract cycle? Let's break down the shareholder registry to see who is truly in control and what their collective actions tell us about the future of this high-precision timing specialist.

Who Invests in Frequency Electronics, Inc. (FEIM) and Why?

You're looking at Frequency Electronics, Inc. (FEIM) and trying to figure out who's actually holding the stock and what their game plan is. The direct takeaway is that this is a stock heavily influenced by institutional money-specifically, growth-focused hedge funds and large index-tracking institutions-who are betting on the company's dominance in high-margin space and defense contracts.

As of late 2025, institutional investors hold the majority, with approximately 58.60% of the stock. That's a significant concentration, meaning the stock price is very sensitive to their buying or selling. The remaining ownership is split between insiders (management and directors) and retail investors, who are often attracted by the company's niche technology story.

Key Investor Types: The Ownership Breakdown

The investor base for Frequency Electronics, Inc. is a clear mix of professional money managers, which is typical for a specialized technology company that operates in the defense and aerospace sectors. It's not a stock dominated by individual investors, but rather by those with deep pockets and long-term mandates.

• Institutional Investors: This group, which includes mutual funds, pension funds, and large asset managers like BlackRock, Inc. and Vanguard Group Inc., holds the largest share. Their combined ownership of 58.60% makes them the controlling force. BlackRock, Inc., for example, significantly boosted its position in Q2 2025 by adding 305,576 shares.
• Hedge Funds: A substantial portion of the institutional ownership, about 19% of the shares outstanding, is held by hedge funds, with Edenbrook Capital, LLC being the largest single shareholder. These investors are often more active and look for catalysts to drive value in the short to medium term.
• Retail Investors: Individual investors, from novice to expert, make up the rest. They are often drawn to the company's role in cutting-edge areas like quantum sensing and next-generation satellite constellations, which you can read more about in Frequency Electronics, Inc. (FEIM): History, Ownership, Mission, How It Works & Makes Money.

Here's the quick math: nearly six out of every ten shares are owned by a professional firm. That's a defintely high-conviction stock.

Investment Motivations: Why They're Buying

The primary attraction for investors is the company's clear growth trajectory, which is tied directly to high-priority US government and defense spending. The 2025 fiscal year results gave them a lot to chew on.

• Exceptional Growth Prospects: Fiscal Year 2025 revenue hit $69.8 million, a 26% jump year-over-year. This growth is largely driven by its core business: high-precision timing and frequency products for satellite payloads, which accounted for 59% of annual revenue, or $40.9 million.
• Strategic Niche Market Position: Frequency Electronics, Inc. is a world leader in its niche, supplying mission-critical components for space and terrestrial applications, including C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) and electronic warfare. They are also strategically expanding into emerging quantum sensing markets.
• Strong Financial Health: The company is essentially debt-free and has an impressive Return on Capital Employed (ROCE) of 14%, which significantly outperforms the Electronic industry average of 9.2%. This shows they're generating excellent returns on the capital they use.
• Commitment to Shareholder Value: Management signaled confidence by announcing a $20 million share repurchase authorization in Q1 Fiscal Year 2026. Plus, the company paid a dividend in Q2 of fiscal 2025, which accounted for approximately $9.6 million in cash usage.

Investment Strategies: How They Play FEIM

You see a few distinct strategies at play here, all converging on the company's specialized market position and recent financial strength.

Long-Term Growth Holding (Passive & Active Institutions): Large asset managers like Vanguard and BlackRock, Inc. are primarily long-term holders. They are buying because the company is a critical component supplier in growing, multi-year defense and space programs, which provides excellent revenue visibility. The backlog of approximately $70 million as of April 30, 2025, reinforces this long-term view.

Value/Activist Investing (Hedge Funds): The significant hedge fund ownership suggests a classic value play. These funds see a company with a flawed balance sheet, a dominant niche, and a clear path to higher profitability-as evidenced by the FY2025 net income of $23.8 million. They often push for operational improvements or capital allocation changes, like the recent share repurchase plan, to close the gap between the stock price and the underlying value.

Momentum Trading (Short-Term Traders): The stock's high volatility, driven by contract announcements and earnings beats, attracts short-term traders. The quadrupling of net income in FY2025, from $5.6 million in FY2024 to $23.8 million, created significant positive momentum that traders will try to ride, especially around new contract awards or quarterly earnings calls.

Finance: Review the latest 13F filings for Q3 2025 to track any shifts in the top 10 institutional holders by the end of this quarter.

Institutional Ownership and Major Shareholders of Frequency Electronics, Inc. (FEIM)

If you're looking at Frequency Electronics, Inc. (FEIM), the first thing you need to know is that institutional money-the big funds-holds the majority of the power here. As of late 2025, institutional investors collectively own a substantial portion of the company, with ownership figures hovering around 58.60% of the outstanding stock. This means the stock's movement and, frankly, the company's strategic direction are highly sensitive to the decisions made in a few major boardrooms.

The institutional stake is significant. Put simply, the top seven shareholders alone control about 50% of the company's share register. That's a lot of influence concentrated in a small group of hands, and it means you need to pay close attention to their filings.

Here's the quick math: when nearly six out of every ten shares are held by professional money managers, their collective action can easily swing the stock price.

Top Institutional Investors and Their Stakes

The institutional buyer profile for Frequency Electronics, Inc. is a mix of active hedge funds and passive index behemoths. This blend tells you the company is seen both as a long-term holding for broad market exposure and a short-to-medium-term opportunity for active value creation.

The single largest shareholder is an activist hedge fund, Edenbrook Capital, LLC, which holds a significant 19% of the shares outstanding. This is a crucial detail because hedge funds, unlike passive index funds, often seek to influence management and push for changes to 'unlock value' or boost the share price in the near term. You defintely want to track their moves.

Beyond the activist player, the largest institutional investors as of November 2025 include some of the biggest names in the asset management world.

• Edenbrook Capital, LLC (The largest single shareholder)
• Vanguard Group Inc
• BlackRock, Inc.
• Dimensional Fund Advisors Lp
• Renaissance Technologies Llc
• Geode Capital Management, Llc
• Marshall Wace, Llp

For more on the company's background and business model, you can check out Frequency Electronics, Inc. (FEIM): History, Ownership, Mission, How It Works & Makes Money.

Recent Shifts: Who's Buying and Selling

The most recent institutional filings, largely covering the second quarter of the 2025 fiscal year, show a clear trend of net accumulation, but with some very active trading underneath the surface. Overall, 54 institutional investors added shares to their portfolios, while 37 decreased their positions in the quarter. This is a sign of high-conviction buying alongside some profit-taking or repositioning.

The most notable additions came from two of the largest index fund managers, BlackRock, Inc. and Vanguard Group Inc, which is typical for a company that has seen a strong one-year return (which was 114% leading up to September 2025).

Here's a snapshot of the most significant moves in Q2 2025:

While BlackRock and Vanguard are increasing their stakes, which provides a solid, long-term anchor, the presence of major hedge funds like Millennium Management LLC actively rotating in and out shows the stock is a contested, high-beta name. You see the push and pull of the market in these filings.

The Impact of Institutional Ownership on Stock and Strategy

The high level of institutional ownership, particularly the 19% stake held by hedge funds, means these large investors play a direct role in Frequency Electronics, Inc.'s stock price volatility and corporate strategy. When a few firms own half the stock, they can easily influence shareholder votes on key issues like director elections or executive compensation.

For instance, the company recently announced a $20 million share repurchase authorization in September 2025. This kind of move-returning capital to shareholders-is often a direct result of pressure from activist or engaged institutional investors who want to see a more direct boost to earnings per share (EPS) and stock price.

What this estimate hides is the potential for a 'crowded trade.' When many institutions own a stock, a sudden piece of bad news can trigger a rapid sell-off as multiple large parties compete to exit, amplifying the downside risk. The recent Q1 fiscal year 2026 earnings miss, where EPS fell to $0.07 from $0.25 year-over-year, is exactly the kind of event that tests the conviction of these big holders. Your action item is to monitor the next round of 13F filings closely for any significant institutional exits, as that would signal a loss of confidence in the turnaround story.

Key Investors and Their Impact on Frequency Electronics, Inc. (FEIM)

You're looking at Frequency Electronics, Inc. (FEIM) and asking the right question: who are the big players, and what are their intentions? The direct takeaway is that this is an institutionally-driven stock, with a single, highly-active hedge fund holding significant sway. Institutional investors own a hefty chunk-about 44% of the company, making the stock price sensitive to their trading actions.

The investor profile here is a mix of passive index funds and a very active, concentrated hedge fund. This means you have a baseline of stability from the large asset managers, but the real near-term volatility and strategic pressure come from the activist money. It's a classic setup for a small-cap stock with a strong niche in defense and space technology.

The Dominant Force: Edenbrook Capital, LLC

The most notable investor is Edenbrook Capital, LLC, a hedge fund that is currently the largest shareholder. As of the most recent filings (September 30, 2025), they hold a commanding position, owning approximately 19% of the shares outstanding. This isn't a passive investment; hedge funds like Edenbrook are known for being active investors who often seek to influence management for short-to-medium-term value creation. One big investor move can really shift the stock's direction.

Their stake of 1,873,810 shares gives them a substantial voice at the Annual Meeting of Stockholders, which was held in October 2025. The presence of such a large, active holder often signals a belief that the company's underlying value-driven by its core business in precision timing for satellite payloads, which generated $40.9 million in revenue in fiscal year 2025-is undervalued.

• Dominant position: 19% of shares outstanding.
• Potential influence: Pushes for strategic or operational changes.
• Value owned: $42.55 million as of June 30, 2025.

The Passive Giants: Vanguard, BlackRock, and Dimensional

Beyond the activist money, the list of major investors includes the household names of the financial world. These are primarily passive investors, holding shares for index tracking or broad market exposure. Their influence is less about boardroom drama and more about providing a floor of institutional demand.

Here's the quick math on their recent moves, based on the September 30, 2025, filings:

To be fair, the Vanguard Group Inc. and Dimensional Fund Advisors Lp both trimmed their positions in the third quarter of 2025, with Dimensional cutting its stake by over 37%. This is often a function of index rebalancing, not a specific negative view on the company. Still, it's a lot of stock hitting the market. Conversely, BlackRock, Inc. actually added to its position, increasing holdings by over 2%. This kind of mixed signal is defintely common when a stock has had a stellar run, as FEIM's stock surged over 110% year-to-date leading up to October 2025.

Mapping Recent Moves to Actionable Insights

The most important recent move from the company itself, which investors will be watching, is the authorized $20 million share repurchase program announced in September 2025. A buyback signals management believes the stock is cheap, and it can help offset institutional selling pressure. Given the company's strong fiscal year 2025 net income of $23.8 million, they have the financial health to execute on this.

The key risk here is the concentration of ownership. The top seven shareholders own 50% of the company, meaning a coordinated move by even a few large players can cause significant stock price volatility. You need to monitor the Schedule 13D and 13G filings for these major holders. If you want a deeper dive into the company's foundation, you can review Frequency Electronics, Inc. (FEIM): History, Ownership, Mission, How It Works & Makes Money.

The clear action here is to track Edenbrook's filings closely, as they are the most likely to drive a strategic decision, and watch the execution of the $20 million buyback, which should provide support. The stock is sensitive to their trading actions.

Market Impact and Investor Sentiment

You're looking at Frequency Electronics, Inc. (FEIM) because the stock has been a rocket, but you want to know if the fuel tank is full or running on fumes. The short answer is that major shareholders are positive on the long-term story-the shift to profitability is real-but they are also realistic about the near-term volatility, which is a key distinction.

Institutional investors hold the largest block, owning 44% of the company, which suggests a belief in the core business of precision timing and frequency products. Hedge funds, often the most active and demanding shareholders, hold a significant 19% stake, with Edenbrook Capital, Llc being the largest single shareholder with that 19% of shares outstanding as of September 2025. This high institutional ownership means the stock price is defintely sensitive to big trading moves, so watch the 13F filings.

The top seven shareholders alone control 50% of the company, which frankly, gives them a lot of sway over strategic decisions, but it also creates a tight float that can amplify price swings. The general public, or individual investors, hold a respectable 26% of the shares, showing retail interest is also a factor here.

Recent Market Reactions and Volatility

The stock market's response to Frequency Electronics, Inc.'s performance has been dramatic and two-sided. The overall sentiment for 2025 has been strongly positive, with the stock price up 45.62% as of mid-November 2025, and a total shareholder return of 181% over the one-year period ending in October 2025. That's a massive return.

The clearest signal came in March 2025 when the company reported its Q3 Fiscal Year 2025 (FY2025) earnings: the stock surged 10.2% on the news. Why? Adjusted earnings per share exploded to $1.60 for the quarter, compared to just $0.01 in the prior-year period. But here's the rub: management themselves cautioned that the exceptionally strong Q4 FY2025 revenue of $20.0 million was partly due to programs finishing earlier than planned, meaning that level of performance isn't a new baseline.

This caution played out in the market recently, with the stock dropping 11% in one week in October 2025, following a soft Q1 FY2026 report. The market is rewarding the long-term profitability trend but is punishing the quarter-to-quarter lumpiness inherent in the government contracting business. The recent pullback is a classic example of growth expectations hitting the reality of a project-based revenue cycle.

Analyst Perspectives: Core Strengths and Key Risks

Analysts are generally constructive on Frequency Electronics, Inc.'s future, but they are clear-eyed about the risks. Price targets currently range from $33 to $43, as of October 2025, which gives you a clear sense of the valuation band the pros are working within. The consensus is that the company has fundamentally changed its profitability profile, moving from a loss to net income of $23.8 million for the full FY2025. Here's the quick math on that: the company's full-year revenue hit approximately $69.8 million in FY2025, with operating income landing at $11.7 million, showing significant margin improvement.

The investment thesis hinges on two main areas:

• Satellite Payload Dominance: Revenue from satellite payloads was $40.9 million in FY2025, accounting for 59% of total consolidated revenues, confirming their leadership in this high-margin space.
• Quantum Sensing Initiatives: Increased R&D spending is a positive signal, focusing on new products for the proliferated satellite market and quantum sensors-a high-growth, next-generation technology.

Still, the biggest constraint is customer concentration. Frequency Electronics, Inc. is heavily dependent on U.S. government contracts, which accounted for a huge 94% of total sales in fiscal 2025. This dependency is why contract award timing and customer milestones can cause erratic quarterly results. The backlog of approximately $70 million at the end of FY2025 is solid, but the uneven nature of government funding means you can't expect a smooth, linear revenue climb every single quarter. It's a great business, but it's a lumpy one.

If you want to understand the strategic direction underpinning these numbers, it's worth reviewing the company's core values and long-term goals: Mission Statement, Vision, & Core Values of Frequency Electronics, Inc. (FEIM).

Next Step: Review your own position size against the analyst high and low price targets ($33 to $43) to ensure you have a margin of safety against the inevitable contract timing dips.