Terex Corporation (TEX) Bundle
Who Invests in Terex Corporation (TEX) and Why?
Who Invests in Terex Corporation (TEX) and Why?
Understanding the investor landscape for Terex Corporation involves examining key investor types, their motivations for investing, and the strategies they employ. Below is a breakdown of these aspects as of 2024.
Key Investor Types
- Retail Investors: Individual investors who buy and sell stocks through brokerage accounts. They often focus on growth potential and dividends.
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies that invest on behalf of their clients. They typically hold larger positions and have significant influence on stock price movements.
- Hedge Funds: Investment funds that employ various strategies to generate high returns, often involving leverage and short-selling. They may invest in Terex for both growth and value opportunities.
Investment Motivations
Investors are attracted to Terex Corporation for several reasons:
- Growth Prospects: The company reported net sales of $1,212 million for Q3 2024, showing a decrease from $1,290 million in Q3 2023, primarily due to lower end-market demand.
- Dividends: Terex has declared dividends of $0.17 per share in each quarter of 2024, maintaining a commitment to returning capital to shareholders.
- Market Position: Terex holds a strong position in the aerial work platforms and materials processing markets, with a backlog of $1.6 billion, indicating robust future demand.
Investment Strategies
Investors typically adopt various strategies when investing in Terex Corporation:
- Long-Term Holding: Many institutional investors may adopt a long-term perspective, focusing on the company's growth trajectory and market position.
- Short-Term Trading: Retail investors might engage in short-term trading based on market trends and quarterly performance reports.
- Value Investing: Hedge funds may look for undervalued opportunities, especially given the recent decrease in sales and profits, which could indicate a potential rebound.
Investor Profile Data
| Investor Type | Percentage of Shares Owned | Investment Motivation | Average Holding Period |
|---|---|---|---|
| Retail Investors | 15% | Growth, Dividends | 1-2 years |
| Institutional Investors | 70% | Market Position, Long-Term Growth | 3-5 years |
| Hedge Funds | 15% | Value Opportunities, Short Selling | Less than 1 year |
As of September 30, 2024, Terex Corporation's total stockholders' equity was $1,957 million, with total liabilities of $1,824 million. This financial backdrop informs investor sentiment and strategies moving forward.
Institutional Ownership and Major Shareholders of Terex Corporation (TEX)
Institutional Ownership and Major Shareholders
As of the latest data in 2024, the following table details the largest institutional investors in Terex Corporation (TEX) along with their respective shareholdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 7,035,000 | 11.9% |
| The Vanguard Group, Inc. | 6,800,000 | 11.5% |
| State Street Global Advisors | 5,200,000 | 8.8% |
| Invesco Ltd. | 4,000,000 | 6.7% |
| Dimensional Fund Advisors | 3,500,000 | 5.9% |
In the recent quarter, institutional ownership has seen changes. Notably, BlackRock increased its stake by 1.2% while Vanguard reduced its holdings slightly by 0.5%. This reflects a broader trend where institutional investors are reassessing their positions amid shifting market conditions.
Institutional investors play a significant role in influencing the stock price and strategic direction of the company. Their large stakes often provide stability to the stock price, as these investors typically have a long-term investment horizon. Additionally, their involvement can attract further investment interest from other investors, enhancing the company's market perception.
As of September 30, 2024, Terex reported a total of 59.7 million shares outstanding, with institutional investors collectively owning approximately 44% of the company. The presence of major institutional shareholders often signals confidence in the company’s strategic initiatives and financial health.
In conclusion, the institutional ownership landscape of Terex Corporation illustrates a diverse range of major shareholders, whose actions and investment strategies continue to shape the company's trajectory in 2024.
Key Investors and Their Influence on Terex Corporation (TEX)
Key Investors and Their Impact on Terex Corporation (TEX)
In the landscape of Terex Corporation, several key investors play a significant role in shaping its strategic direction and influencing stock movements. These include notable institutional investors, mutual funds, and individual shareholders.
Notable Investors
As of the latest reports, some of the notable investors in Terex Corporation include:
- The Vanguard Group, Inc. - Holds approximately 9.8% of outstanding shares.
- BlackRock, Inc. - Owns around 8.7% of shares.
- State Street Corporation - Possesses about 5.2% of shares.
- Wellington Management Company, LLP - Holds roughly 4.5% of shares.
Investor Influence
These institutional investors significantly impact company decisions and stock movements through their voting power and strategic input during shareholder meetings. For example:
- Vanguard and BlackRock often advocate for sustainability initiatives, pushing Terex towards more environmentally friendly practices.
- State Street’s involvement typically centers on governance issues, ensuring that the company's board is diverse and accountable.
Recent Moves
Recent activities by these investors include:
- Vanguard Group increased its stake by 1.2 million shares in the last quarter of 2023, indicating confidence in the company’s growth prospects.
- BlackRock sold 500,000 shares in early 2024, reflecting a strategic reallocation of its portfolio.
- Wellington Management has been actively involved in discussions regarding the company’s strategic direction, particularly after the recent acquisition of ESG, which is expected to enhance Terex's market position.
Investor Activity Table
| Investor | Stake (%) | Recent Activity | Impact on Stock |
|---|---|---|---|
| The Vanguard Group, Inc. | 9.8 | Increased by 1.2 million shares | Positive outlook on stock performance |
| BlackRock, Inc. | 8.7 | Sold 500,000 shares | Possible short-term pressure on stock price |
| State Street Corporation | 5.2 | No recent changes | Maintaining steady influence |
| Wellington Management Company, LLP | 4.5 | Engaged in strategic discussions | Potential long-term positive impact |
Understanding the profiles and activities of these key investors provides insights into the strategic direction of Terex Corporation and the potential implications for its stock performance in 2024.
Market Impact and Investor Sentiment of Terex Corporation (TEX)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the sentiment among major shareholders towards the company is neutral. Recent reports indicate that while some investors express cautious optimism, others are wary due to fluctuating market conditions and performance metrics.
Recent Market Reactions: The stock market has shown mixed reactions to changes in ownership. For instance, following the announcement of share repurchases totaling approximately $32 million in 2024, there was a short-term uptick in stock price. However, the overall sentiment remains tempered due to lower sales and profit margins reported in quarterly earnings. The stock price was noted at around $55.42 per share during July 2024 .
Analyst Perspectives: Analysts view the impact of key investors as a significant factor in shaping future company performance. The anticipated adjusted earnings per share (EPS) for 2024 is projected to be between $5.85 to $6.25, with expected sales ranging from $5.0 billion to $5.2 billion. Analysts suggest that the company’s ability to navigate current economic challenges will be crucial .
| Key Financial Metrics | 2024 (Projected) | 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $5.0 - $5.2 billion | $3.9 billion | ~28% Increase |
| Adjusted EPS | $5.85 - $6.25 | $5.03 | ~16.4% Increase |
| Free Cash Flow | $88 million (Q3 2024) | $61 million (Q3 2023) | ~44.3% Increase |
| Liquidity | $952 million | $971 million | ~1.9% Decrease |
The company's largest market remains North America, contributing approximately 67% of total sales . The market is currently witnessing a shift as the company adapts to changing demand patterns and economic conditions, which will be critical for sustaining investor confidence moving forward.
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Article updated on 8 Nov 2024
Resources:
- Terex Corporation (TEX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Terex Corporation (TEX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Terex Corporation (TEX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.