NEW YORK - Harley-Davidson (NYSE: NYSE:HOG), the iconic American motorcycle manufacturer, has witnessed a significant shift in its stock ownership dynamics, with institutional investors holding a dominant 74% stake. This concentration of ownership brings both stability and risk to the company's stock, with the potential for rapid selling during market downturns due to "crowded trade" risks. Despite this, the recent performance has been positive, with a 13% gain last week providing a respite from an annual downturn of 36%.
The Vanguard Group, Inc. is at the forefront of these institutions with a 9.5% stake, closely followed by H Partners Management and BlackRock (NYSE:BLK), Inc., each owning 8.5%. Hedge funds also play a critical role, holding an influential 8.5% that could drive strategic changes aimed at increasing value.
On the other hand, insider ownership remains modest at less than 1%, translating to approximately US$24 million in shares held by top-level managers and board members. This level of insider investment ensures that their interests are aligned with those of the broader shareholder community without giving them excessive control over the company's decisions.
Adding to the ownership mix is the general public, which holds a considerable 17%. This segment of shareholders may not have controlling power but can indirectly influence corporate governance and strategic direction.
Harley-Davidson's performance is closely monitored by market analysts who provide essential insights and forecasts, helping to shape an understanding of the company's long-term prospects. The diverse shareholder structure highlights various forces that can impact Harley-Davidson's strategies and market valuation, with institutional investors currently leading the way in influencing its corporate affairs.
InvestingPro Insights
In line with the article's focus on Harley-Davidson's stock performance and shareholder dynamics, InvestingPro offers some valuable insights.
InvestingPro data shows that Harley-Davidson's adjusted market cap stands at 4180.0M USD with a P/E ratio of 6.04. The company's revenue over the last twelve months as of Q3 2023 was 5925.55M USD, indicating a 5.26% growth. Despite a quarterly revenue decline of -6.04% in Q3 2023, the company managed a significant return over the last week.
InvestingPro Tips highlights that Harley-Davidson's management has been aggressively buying back shares. This action aligns with the article's mention of modest insider ownership. Additionally, the company's strong earnings have enabled it to maintain dividend payments for 31 consecutive years. This fact is underscored by the company's dividend yield of 2.2% as of 2023.
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