Westwood Holdings Reports Growth and Positive Outlook
Westwood Holdings Group, Inc. (NYSE: WHG) reported a significant increase in total assets under management (AUM) during its Third Quarter 2024 Earnings Conference Call, reaching $17.7 billion, the highest level in six years. CEO Brian Casey highlighted the company’s strong financial performance, comprehensive income recovery, and the successful launch of two energy ETFs. The firm also declared a regular cash dividend, reflecting its confidence in financial stability and growth prospects.
Key Points
Westwood Holdings Group, Inc.’s AUM increased by 5%, reaching $17.7 billion. The company launched two energy ETFs, with the MDST ETF surpassing $50 million in AUM. Westwood executed a share repurchase program that returned approximately $273,000 to shareholders. Institutional gross flows exceeded $1 billion, with a strong pipeline approaching $2 billion. The company reported comprehensive income of $0.1 million (or $0.01 per share). A regular cash dividend of $0.15 per share, payable in January 2025, was announced. Westwood is optimistic about growth in energy offerings and managed investment solutions.
Company Outlook
Westwood focuses on U.S. mid-cap value investments with an organic pipeline of approximately $2 billion. The company’s Collective Investment Trusts (CITs) and separate accounts gained traction and recognition. Significant organic flows are expected over the next six months.
Challenges
The company faced a challenging environment but managed to surpass benchmark measures with its U.S. value strategies. Despite the market value increase, a net outflow of $0.1 billion occurred.
Strengths
Westwood ranked among the top three in multiple asset strategy categories. The firm’s solid financial position includes $48.3 million in cash and no debt. There is strong demand for U.S. value products and growth potential in the ETF market with bespoke index solutions.
Weaknesses
Comprehensive income remained modest at $0.1 million, despite being positive.
Q&A Highlights
Brian Casey expressed confidence in the company’s balance sheet and its ability to secure adequate seed capital for new ETF initiatives. The ETF market in the U.S. has reached $10 trillion, presenting a significant growth opportunity.
Westwood Holdings Group, Inc. demonstrated resilience and strategic growth in a challenging market. The company’s focus on value investments and innovative ETF offerings suggests it is well-positioned for future success. With a strong financial foundation and forward-looking approach, Westwood Holdings aims to leverage the growing ETF market and robust organic pipeline in the months ahead.
InvestingPro Projections
Westwood Holdings Group, Inc. (NYSE: WHG) has shown noteworthy resilience and growth potential, as seen in both its recent earnings report and additional data obtained from InvestingPro. The company’s strong financial performance is supported by several key metrics and forecasts.
According to InvestingPro data, Westwood's revenue growth is impressively at 12.41% for the twelve months ending in Q2 2024, aligning with the reported increase in assets under management. This growth is especially notable given the challenging market environment mentioned in the earnings call.
An InvestingPro Insight highlights that Westwood has maintained uninterrupted dividend payments for 23 years, reflecting the company’s commitment to shareholder returns. This aligns with the regular cash dividend disclosed in the earnings report and demonstrates the company’s long-term financial stability.
Another relevant InvestingPro Insight indicates that Westwood experienced a significant price increase over the past six months. This is consistent with the reported 27.09% total price return for the same period, overlapping with the positive outlook and growth strategies discussed in the earnings call.
The company’s P/E Ratio (Adjusted) of 14.0 for the twelve months ending in Q2 2024 suggests that the stock may be reasonably valued, especially considering the growth expectations outlined in the earnings report.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights and projections. Currently, there are six more InvestingPro Insights available for Westwood Holdings Group, providing deeper understanding of the company’s financial health and market position.
This article has been generated, translated, and reviewed by an editor with the assistance of artificial intelligence. For more information, please refer to our Terms and Conditions section.