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US companies’ face-to-face investor engagement rises sharply

Tue April 24, 2018

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Wall Street Horizon data shows biggest growth in analyst and investor days

Companies in the US have increased face-to-face contact with investors by 26 percent in year-on-year numbers across 2017, according to Wall Street Horizon.

Barry Star, founder and CEO of the earnings calendar and events data provider, tells IR Magazine that although the firm doesn’t want to reveal specific numbers, the areas that have seen the largest growth since 2015 are analyst and investor days. Wall Street Horizon also reports a 23 percent year-on-year increase from 2015 to 2016.

There are a number of drivers behind the overall growth, adds Star. ‘The increase in direct investor meetings is being driven principally by three factors,’ he explains. ‘IROs having more desire to talk to investors directly and control the corporate message, the pressures on the sell side to reduce costs (and reduce their activity as middlemen), and the reduced cost and better availability of technology.’

The data mirrors trends picked up by IR Magazine in 2016, when a survey of 665 IR professionals found that almost half (49 percent) had increased their level of direct targeting in the previous three years. A further 49 percent said levels had remained the same, while just 2 percent said they had reduced activity in this area, according to the report Direct targeting: What’s changed?