Institutional Ownership: formula and how to read it

Share of the company held by institutional investors, from their latest 13F filings. Shares held by institutional investment managers (funds, banks, insurers, pension funds) according to their SEC Form 13F filings for the latest quarter, divided by the company's shares outstanding. Managers have 45 days after each quarter ends to file, so the figure is up to a quarter old. It can pass 100% when the same shares are reported by more than one filer. High or low ownership is not good or bad in itself, so it isn't scored; use it as a filter.

Stock Meadow groups it under Company, and shows it in tables as Inst. ownership.

Institutional ownership = shares held by managers filing a Form 13F for the latest quarter ÷ the company's shares outstanding

If 13F filers together report 650 million shares of a company that has 1 billion shares outstanding, institutional ownership is 65%. The numbers are made up for illustration.

A high figure means professionals hold most of the stock, which usually goes with high trading volume and wide analyst coverage. A low figure is common for small companies, recent listings and companies with a founder or family holding a large block. Neither is good or bad on its own; compare a company with its peers and watch the change from one quarter to the next.

It can be used as a filter and as a column, but not for scoring: it describes a company rather than making it better or worse.

• The data lags. Managers have 45 days after each quarter ends to file, so the figure describes holdings up to a quarter ago.
• It can pass 100%. The same shares can be reported by more than one filer (an adviser and the fund it manages), and short sellers borrow and re-lend shares.
• Only managers with at least $100 million under management file a 13F, and only their US-listed long positions are reported. Private investors and many foreign funds are missing.
• A holder that buys stock is not necessarily bullish: index funds buy and sell to follow an index, not because of a view on the company.

How Stock Meadow handles gaps. Usually blank when no institution reports owning the stock, or its 13F data hasn't been loaded yet.

Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.

No scoring model uses it. It is a filter and a table column only.

Read about every scoring model on the scoring models page.

• Change in Institutional Holders: how the number of institutions holding the stock changed since the previous quarter.
• Insider Net Buying: insiders' open-market buying minus selling over 90 days, as a share of the company's value.
• Number of Analysts: how many analysts forecast the company's earnings.

What is a 13F filing?

A quarterly report to the US Securities and Exchange Commission in which an investment manager with over $100 million in US-listed stocks lists what it held at the end of the quarter. It is due within 45 days of quarter end.

Is high institutional ownership good?

Not by itself. It shows professionals have looked at the company and that the stock is easy to trade, but it also means many of the same investors may sell together if the story changes. Stock Meadow lets you filter on it but does not score it.

How often does the figure change?

Four times a year. Stock Meadow reads each quarter's filings once the 45-day deadline has passed, then once more for late filers.

Can I score stocks on Inst. ownership?

It can be used as a filter and as a column, but not for scoring: it describes a company rather than making it better or worse.

Why is Inst. ownership blank for some stocks?

It is usually blank when no institution reports owning the stock, or its 13F data hasn't been loaded yet. Stock Meadow leaves the figure blank rather than guessing it.