Institutional Ownership Assessment - How I Assess the Shares Owned by
In this institutional ownership assessment article, I inform you how I assess the change in the
institutions' stock holdings.
As I already explained in the article: Insider Stock Ownership - Which Exclusive Type of Stock Owners Are Your Fellow Shareholders, I
do not consider the holdings of the off-the-radar investors (i.e. the private investors) to be relevant, as
their individual holdings in a specific stock are normally relatively small. Therefore I only evaluate the
company ownership of the other two stock owner groups: the on-the-radar investors and the corporate
Company Ownership Evaluation of On-The-Radar Investors
The on-the-radar investors are obliged to report their insider stock holdings to the relevant
authorities. This ownership group consists of institutional owners, mutual funds and investors owing at least
5% of a certain stock. When I am assessing the shares owned by on-the-radar investors, I only assess
the shares owned by the institutional holders and mutual funds. If an institution or a mutual fund is
holding at least 5% of the company's stock, I will include their ownership in this assessment too. The reason for
excluding individuals and related companies who own at least 5% of the company's total shares outstanding, is that
I believe they have the intention to hold their shares for the longer term.
Although these professional investors can often spend more time and resources on their due diligence compared to
a typical private investor, this does not necessarily mean the professional investors will outperform the
private investor's investment results.
I believe the best way to evaluate the institutional ownership, is by calculating the ownership
change between the two most recent periods, to see if their total ownership has increased,
decreased, or if their ownership maintained around the same percentage. For my institutional ownership assessment,
I have created the following reference table:
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How I Conduct My Stock's Due Diligence Investigation Process.If
you want to know what I learned while I was conducting my due diligence, I recommend you to read
all the chapters of the investigation process.
Are These the Best Stocks to Buy Today.In my stock watchlist you
find stocks who offer great potential, but at the time I analysed these stocks they didn't comply
with all my guidelines from my due diligence chapters.
Are These the Best Shares to Buy Now.As the year 2015 has just started, I
believe it's about time that I share my stock portfolio with you. Therefore, you will find my
updated stock portfolio on this page.
Jeroen Snoeks is the founder of UndervaluedEquity.com, a website for
investors passionate about investing in undervalued stocks. ThroughUndervaluedEquity.com, he shares his
experience and knowledge and will soon reveal his personal stock portfolio.