Exploring Liquidity Services, Inc. (LQDT) Investor Profile: Who’s Buying and Why?

You're looking at Liquidity Services, Inc. (LQDT) and wondering who's defintely driving the price action, especially after seeing their strong fiscal performance. It's a fair question because when a stock is nearly three-quarters owned by institutions-with institutional ownership sitting around 71.15%-you have to follow the smart money. The company just reported a record Q3 2025 Gross Merchandise Volume (GMV) of $413.0 million, marking a 9% increase, and Revenue surged 28% to $119.9 million, so the fundamentals are certainly attracting attention. But the investor profile tells a more nuanced story: while giants like BlackRock, Inc. hold a massive stake of over 3.35 million shares, they slightly trimmed their position in Q3 2025, while Truist Financial Corp dramatically added 1,448,892 shares in Q2 2025. This kind of split decision among the largest holders, including The Vanguard Group, Inc., means there's a real debate happening on the street about near-term valuation. Are the buyers focused on the $7.4 million GAAP Net Income (up 24%) and zero debt, or are the sellers worried about Q4 guidance? We need to dig into the 407 institutional owners to see who is making the biggest bets and why.

Who Invests in Liquidity Services, Inc. (LQDT) and Why?

You're looking at Liquidity Services, Inc. (LQDT) because the circular economy is no longer a niche-it's a core business trend. The investor profile here is dominated by large, sophisticated institutions, but their motivations are a mix of passive indexing and aggressive, growth-focused value investing.

The core takeaway is that the majority of the float is held by long-term institutional money betting on the company's platform model, not its immediate stock price volatility. This isn't a retail-driven stock; it's an institutional conviction play on the future of surplus asset management.

Key Investor Types: The Institutional Majority

The ownership structure of Liquidity Services, Inc. is heavily skewed toward institutional capital. As of the end of the 2025 fiscal year reporting period, institutional investors hold a commanding 71.15% of the company's stock. This high concentration means the stock's price movements are largely dictated by the buying and selling decisions of major funds, not individual investors.

Insiders-executives and directors-also maintain a significant stake, owning approximately 28.40% of the shares. This leaves the remaining retail float at a very small fraction, around 0.45%. Honestly, that insider ownership is a powerful signal of management's belief in their own long-term strategy.

The top institutional shareholders are names you know, reflecting both passive and active management styles:

• BlackRock, Inc. and Vanguard Group Inc: Primarily passive, tracking index funds.
• Renaissance Technologies Llc: A major hedge fund, suggesting a quantitative or short-term trading interest.
• State Street Corp: Another major asset manager with both passive and active strategies.

Here's the quick math on the ownership split:

Investment Motivations: Growth, Not Income

Investors are attracted to Liquidity Services, Inc. for its strong growth trajectory and its position as a leader in the business-to-business (B2B) surplus asset market. This is defintely a growth story, not an income play, as the company does not currently pay a dividend. The focus is on compounding earnings and reinvesting cash into the platform.

The financial results for the 2025 fiscal year provide the concrete evidence for this growth thesis. In the third quarter of FY 2025, the company reported a record Gross Merchandise Volume (GMV) of $413.0 million, representing a 9% year-over-year increase. Revenue surged even faster, up 28% to $119.9 million, showing a favorable shift in their business mix toward higher-margin transactions.

Key motivators for institutional buyers include:

• Profitability and Efficiency: Non-GAAP Adjusted EPS hit $0.34 in Q3 FY2025, up 13% year-over-year.
• Balance Sheet Strength: The company ended Q3 FY2025 with a robust $167.0 million in cash and zero financial debt, providing significant capital allocation flexibility.
• Digital Market Dominance: The GovDeals segment, which serves government entities, continues to post record GMV, showing market share gains.

Analysts are projecting full-year 2025 revenue at approximately $490.56 million, a clear indicator that the market expects this growth momentum to continue. This sustained double-digit growth in a massive, fragmented market is the primary magnet for institutional capital. To understand the underlying business model that drives this growth, you should review Liquidity Services, Inc. (LQDT): History, Ownership, Mission, How It Works & Makes Money.

Investment Strategies: The Blend of Passive and Active

You see two main strategies at play with Liquidity Services, Inc. investors. The first is a straightforward, long-term holding strategy, which is typical for the large index funds that own a substantial portion of the shares. They are essentially buying the entire market and will hold LQDT as long as it remains in their benchmark index.

The second strategy is a more active, growth-at-a-reasonable-price (GARP) approach, favored by active fund managers and hedge funds. They see the company as undervalued relative to its growth potential in the circular economy space. The consensus analyst rating is a 'Moderate Buy,' with an average price target of $38.50, which suggests a significant upside from the current trading range.

For the short-term traders and quantitative funds, the stock's volatility and the mixed signals from recent earnings reports-like the Q3 2025 revenue miss but EPS beat-create opportunities for short-term trading. Management's Q4 2025 guidance for GMV in the range of $355 million to $390 million provides clear benchmarks for those trading on expectations. The hedge fund activity, with some adding and others removing large blocks of shares, confirms this two-sided, active trading interest. It's a conviction stock, so the moves are sharp.

Institutional Ownership and Major Shareholders of Liquidity Services, Inc. (LQDT)

You're looking at Liquidity Services, Inc. (LQDT) because you need to know who the heavy hitters are and what their recent movements tell you about the stock's near-term trajectory. The direct takeaway is this: institutional investors own the vast majority of the company, but their recent activity shows a clear divergence-some are aggressively buying into the circular economy story, while others are trimming positions, likely due to near-term segment headwinds.

As of late 2025, institutional investors hold a commanding position, controlling roughly 71.15% of the company's total shares outstanding. This high level of institutional ownership, which accounts for approximately 30,669,485 shares with a total market value around $712.815 million as of November 7, 2025, provides a crucial layer of stability, but also means the stock is highly sensitive to large-scale portfolio rebalancing. That's a lot of capital betting on the company's B2B e-commerce marketplace platform.

Top Institutional Investors and Their Stakes

The largest shareholders in Liquidity Services, Inc. are a mix of passive index funds and active managers, reflecting the company's inclusion in various small-cap and total market exchange-traded funds (ETFs). This is where the core of the ownership resides. Here's the quick math on the top holders based on the most recent 2025 filings:

You can see BlackRock, Inc. and The Vanguard Group, Inc. anchoring the list. They are primarily passive investors, meaning their stake is a function of Liquidity Services, Inc.'s market capitalization and index inclusion, not a strategic bet on management. Still, their sheer size acts as a defintely solid floor for the stock.

Recent Shifts: Who's Buying and Who's Selling?

Looking at the recent quarterly changes reveals the active management sentiment, and it's a mixed bag. The third quarter of fiscal year 2025 saw a flurry of activity, indicating a debate among professional money managers about the company's valuation and growth prospects. We saw 99 institutional investors add shares in Q1 2025, but 87 decreased their positions. This tells you there's no consensus.

The biggest recent moves show conviction on both sides:

• Aggressive Buyers: Punch & Associates Investment Management, Inc. added 254,875 shares in Q3 2025. In Q1 2025, PORTOLAN CAPITAL MANAGEMENT, LLC added 626,358 shares, and Royce & Associates LP increased its stake by an eye-popping 281.9% by adding 399,279 shares. These are active managers making a clear bullish call.
• Significant Sellers: BlackRock, Inc., despite being the largest holder, slightly reduced its position by -1.476% (or -50,203 shares) in Q3 2025. PACER ADVISORS, INC. removed a massive 560,839 shares, a -97.1% reduction, in Q1 2025.

The key takeaway here is that while the passive money (BlackRock, Vanguard) remains largely static, the active money is rotating, chasing better returns in a small-cap environment. This rotational trading contributes to the stock's volatility.

Impact of Institutional Investors on Stock and Strategy

Institutional investors play a dual role: they provide liquidity and validate the business model, but they also enforce a ruthless focus on short-term results. When Liquidity Services, Inc. released its Q3 FY25 results in August 2025, the stock fell 4.75% despite reporting strong numbers-revenue of $119.9 million (up 28% year-over-year) and Adjusted EBITDA of $17.0 million (up 16%). Why the drop? Investors were likely spooked by the forward-looking guidance, particularly the anticipated flat year-over-year performance in the Retail Supply Chain Group (RSCG) segment, which is a major revenue driver.

This institutional pressure forces management to constantly execute its 'RISE' framework (Recovery Maximization, Increased Volume, Service Expansion, and Expense Leverage). The high institutional ownership means management must continuously articulate the long-term value of its B2B e-commerce platform and its role in the circular economy to keep the large funds invested. The current analyst consensus of a 'Moderate Buy' with an average target price of $38.50 suggests Wall Street sees significant upside from the November 2025 price of $22.68, but the stock's recent performance shows that meeting or beating expectations is the only thing that matters. If you want a deeper dive into the financials, check out Breaking Down Liquidity Services, Inc. (LQDT) Financial Health: Key Insights for Investors.

Your action item is simple: watch the next earnings call on November 20, 2025, for the Q4 FY25 results. The commentary on the RSCG segment's outlook will be the primary driver of institutional buying or selling in the next quarter.

Key Investors and Their Impact on Liquidity Services, Inc. (LQDT)

When you look at who owns Liquidity Services, Inc. (LQDT), the picture is clear: it's a company largely controlled by its founders and heavily backed by major institutional money. This dual structure-high insider control paired with significant institutional backing-is what you need to understand, as it dictates the stock's stability and its long-term strategic direction.

Institutional investors hold the lion's share, owning about 71.15% of the stock, but the real anchor is the insider ownership. Co-founder and CEO William P. Angrick III is the largest individual shareholder, holding a massive stake of roughly 57.72% of the company's shares, valued at approximately $408.54 million as of the 2025 fiscal year data. That's a huge vote of confidence, but it also means outside investors have less say in day-to-day operations.

The Institutional Giants: Who's Holding the Line?

The institutional investor profile for Liquidity Services, Inc. is dominated by the usual suspects-the passive index and major asset managers. They are buying the stock to track a benchmark index, which provides a steady base of demand and reduces volatility. This is not about activist hedge funds demanding a breakup; it's about inclusion in small-cap indices.

As of the end of Q3 2025, the top institutional holders reflect this trend. Their positions are significant, not just in volume but in the sheer capital they represent. Here's a quick look at the top three, based on the latest filings:

• BlackRock, Inc.: Held 3,351,684 shares as of September 30, 2025.
• The Vanguard Group, Inc.: Held 1,759,689 shares as of September 30, 2025.
• Renaissance Technologies LLC: Held 1,649,189 shares as of September 30, 2025.

BlackRock, Inc. and The Vanguard Group, Inc. are essentially permanent shareholders because Liquidity Services, Inc. is a component of the small-cap exchange-traded funds (ETFs) and mutual funds they manage. That's a powerful stabilizing force. Renaissance Technologies LLC, a quantitative hedge fund, is a different beast; their stake suggests the stock fits their complex trading models, which can lead to rapid, large-volume moves.

Recent Moves: A Mixed Signal on Near-Term Value

Looking at the 2025 fiscal year, we see a fascinating mix of institutional buying and selling, which is common for a stock in this market cap range. In Q2 2025, we saw some notable inflows, suggesting a belief in the company's growth trajectory, especially in its B2B e-commerce marketplace platform for surplus assets.

For example, Truist Financial Corp added a substantial 1,448,892 shares in Q2 2025, a massive increase that signals a strong conviction play. Also, Ameriprise Financial Inc. boosted its holdings by 55.1%, adding 454,988 shares in the same quarter. This is defintely a bullish sign from these large, active managers.

Here's the quick math: when a major fund like Wellington Management Group LLP adds 429,200 shares in a single quarter, that's a vote of confidence in the management's ability to execute on its strategy, particularly in the GovDeals and Retail Supply Chain Group (RSCG) segments. You can get a deeper understanding of the underlying business performance in Breaking Down Liquidity Services, Inc. (LQDT) Financial Health: Key Insights for Investors.

Still, you can't ignore the recent selling. Over the last 90 days leading up to November 2025, there was a net selling of shares by insiders, totaling approximately $548,854.03. Specifically, Director Jaime Mateus-Tique sold 5,403 shares in mid-September 2025 for $148,312.35. Insider selling doesn't always signal trouble, but a lack of insider buying can suggest that those closest to the business don't see the stock as deeply undervalued right now. It's a key limiting factor in the near-term bullish case.

The CEO's Outsized Influence

The most crucial factor in Liquidity Services, Inc.'s investor profile is the high level of insider ownership. With the CEO holding over half the company, the risk of a hostile takeover or a major, unwanted strategic shift is almost zero. This stability can be a double-edged sword for outside investors.

On one hand, it means the CEO's interests are perfectly aligned with long-term shareholder value-he is the largest shareholder. On the other hand, it means institutional investors, despite their large collective stake, have little power to force management changes or a pivot in strategy. The company's direction is firmly set by the founder. This is a founder-led business, and you should invest with that understanding.

What this estimate hides is the potential for a liquidity crunch if the CEO were to ever sell a significant portion of his stake, but given the current structure, that seems unlikely. The high insider ownership acts as a strong moat against external activist pressure, giving management the freedom to pursue long-term projects, even if they temporarily impact short-term earnings.

Your action here is simple: track the 13F filings for any major shifts in these top holdings. If Vanguard or BlackRock start to significantly trim their positions, it could signal a change in the stock's index inclusion or a fundamental shift in their passive strategy, which would be a red flag for stability.

Market Impact and Investor Sentiment

The investor sentiment toward Liquidity Services, Inc. (LQDT) is best described as a cautiously optimistic split, leaning toward a 'Moderate Buy' consensus from Wall Street analysts, but with institutional money showing a recent mixed signal. You have to look past the headlines to see what the big players are actually doing with their capital. Institutional investors currently hold a substantial 71.15% of the stock, which is a strong vote of confidence in the long-term viability of their B2B e-commerce marketplace model.

However, the recent capital flow tells a more complex story. In the first quarter of fiscal year 2025, we saw a high volume of activity: 107 institutional investors added shares, but 81 also reduced their positions. This suggests a lack of consensus on the near-term trajectory. For example, ROYCE & ASSOCIATES LP added a significant 399,279 shares in Q1 2025, signaling a strong bullish conviction, while PACER ADVISORS, INC. removed a massive 560,839 shares. This is a classic tug-of-war between value-focused buyers and those taking profits or reallocating capital.

Here's the quick math on major ownership activity:

• Largest Institutional Addition (Q1 2025): ROYCE & ASSOCIATES LP, 399,279 shares added.
• Largest Institutional Removal (Q1 2025): PACER ADVISORS, INC., 560,839 shares removed.
• Insider Selling: Director Jaime Mateus-Tique sold 5,403 shares in September 2025.

Insider selling, like the sale of 5,403 shares by a Director in September 2025, can sometimes spook the market, but it's a small fraction of overall volume and is often for personal liquidity, not a sign the ship is sinking. Still, it's defintely something to watch.

Recent Market Reactions to Ownership Shifts

The stock market's reaction to Liquidity Services, Inc.'s operational performance has been relatively muted, but it shows a clear correlation between earnings beats and a positive, albeit small, stock price bump. When the company announced its Q3 FY2025 results (ending June 30, 2025), the Non-GAAP Adjusted Earnings Per Share (EPS) of $0.34 beat the consensus estimate by $0.02. The stock price reacted by increasing 1.00% the following day. That's a clean one-liner: Good earnings still move the needle.

What this estimate hides, however, is the broader price trend. The stock has been trading in a wide one-year range between a low of $21.67 and a high of $39.72. As of mid-November 2025, the stock was trading around $22.58, which represents a drop of over 30.1% since the start of the year. This decline suggests that while investors appreciate the strong Q3 FY2025 Gross Merchandise Volume (GMV) of $413.0 million and Revenue of $119.9 million, they are still pricing in macroeconomic uncertainties or potential headwinds in the Retail Supply Chain Group (RSCG) segment.

For a deeper dive into the company's financial stability, you should check out Breaking Down Liquidity Services, Inc. (LQDT) Financial Health: Key Insights for Investors. It helps map the risk.

Analyst Perspectives and Key Investor Impact

The analyst community maintains a positive outlook, which acts as a floor for sentiment despite the recent stock price volatility. The consensus rating is a 'Moderate Buy' with an average 12-month price target of $38.50. This target suggests a substantial upside from the current trading price, with the highest target set at $40.00 by Barrington Research, which reiterated an 'Outperform' rating in November 2025.

Analysts are betting that the company's focus on the circular economy and its strong financial position-boasting $167.0 million in cash and zero financial debt as of Q3 FY2025-will drive future growth. The impact of key investors, particularly the large institutional holders, is to provide stability and long-term focus, preventing the stock from collapsing on minor news. Their continued presence validates the business model's scalability, especially as the company forecasts a Q4 FY2025 GAAP Net Income between $5.0 million and $8.0 million.

The analyst price targets break down like this:

The bullish case rests on the idea that the market has not fully factored in the projected double-digit profit growth expected in the upcoming year. The risk is that the anticipated flat performance in the RSCG segment for Q4 FY2025 could temper enthusiasm, but the long-term view remains strong.

Finance: Draft a scenario analysis using the $37.00 and $40.00 price targets by Friday to model potential portfolio returns.