Introducing Valuation Models! 
If you’re researching a stock, it’s important to look beyond the financials and consider who actually owns the company.
For example, if several respected hedge funds or mutual funds are building positions, or if the CEO recently bought a large number of shares, that could be a meaningful signal.
Tracking institutional ownership and insider trading activity can give you insight into how experienced investors and company insiders are positioning themselves.
These investors often have access to deeper research, industry contacts, and strategic information that others may not. While their moves shouldn’t be followed without question, they can provide valuable context for your own decisions.
In this guide, we’ll walk through how you can get institutional and insider ownership data quickly and for free.
Table of Contents:
- What Is Institutional Ownership in a Stock?
- How to Analyze Institutional Ownership Trends
- Why Insider Buying Can Be a Bullish Signal
- Best Free Tools to Monitor Institutional and Insider Activity
- Red Flags in Institutional Ownership and Insider Activity
Let’s dive in!
What Is Institutional Ownership in a Stock?
Institutional ownership refers to the percentage of a company’s shares held by large, professional investors such as mutual funds, pension funds, hedge funds, and insurance companies.
These are not day traders or retail investors. They are massive firms that are often managing billions of dollars.
For example, if you look up a stock and see that it has a high percentage of institutional ownership, that usually tells you two things:
- The stock may have greater liquidity and stability
- Large investors are interested
Institutional ownership is typically updated quarterly through 13F filings, which are reports that investment firms must file with the SEC to disclose their holdings.
But, platforms like TIKR, Yahoo Finance, or Morningstar make it easy for investors by aggregating a stock’s top institutional shareholders, so you don’t have to dig through these SEC filings yourself.
Just because a big firm owns a stock doesn’t mean you should buy it. However, it can help you understand market sentiment and see whether institutional investors are increasing or reducing their positions.
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How to Analyze Institutional Ownership Trends
Here are some important things to look at when analyzing a stock’s institutional ownership.
1. Rising Institutional Ownership
If you see institutional holdings increasing quarter after quarter, that can be a sign that large funds are building positions.
This type of accumulation often creates long-term support for the stock price and reflects growing confidence in the company.
Example: Microsoft (MSFT)
As of the most recent data, major firms like Vanguard, BlackRock, and State Street all increased their Microsoft positions.
Vanguard added over 7 million shares (+1.07%), and BlackRock added nearly 4 million shares (+1.07%) as well.
Even at Microsoft’s massive scale, this kind of buying activity from top-tier institutions shows conviction.
How to Review on TIKR:
- Go to the “Shareholders” tab under the stock’s “Ownership” page.
- Investors with the largest holdings will automatically rise to the top. That means that you’ll see institutional investors at the top of this list.
- You can see if these investors are adding or selling shares.
- You can also sort by Investor Type.
Interpretation:
When leading institutions increase their stake in a large, well-covered company like Microsoft, it reinforces the market’s confidence in its earnings power, competitive position, and long-term value.
2. Falling Institutional Ownership
If big funds are reducing their positions, it could suggest declining confidence in the company’s outlook, valuation, or leadership.
This trend doesn’t always signal disaster, but it’s worth paying attention to.
Example: HubSpot (HUBS)
Recent filings show that Fidelity cut its position in HubSpot by over 350,000 shares, which is a 9.28% decrease.
While Vanguard and T. Rowe Price added shares, the overall picture shows mixed sentiment, with at least one major investor pulling back significantly.
How to Review on TIKR:
- Go to the “Shareholders” tab under the stock’s “Ownership” page.
- Sort by % Change in Shares Held to see which investors are adding the most to their position or selling the most.
- Look out for large, negative changes from influential funds.
- Cross-reference with recent earnings or news to see the context for the sales.
Interpretation:
When a major shareholder like Fidelity trims its position this sharply, it could reflect valuation concerns, slowing growth, or internal challenges. One fund selling isn’t a red flag by itself, but if multiple firms follow, it might signal deeper issues.
3. Ownership Concentration
Ownership concentration can become a risk when a single shareholder or a small group controls a large percentage of a company’s stock.
This can reduce liquidity and introduce volatility if any of those holders decide to exit.
Example: United States Lime & Minerals (USLM)
Inberdon Enterprises owns over 61% of USLM’s shares. That gives Inberdon majority control, meaning public shareholders have limited say in governance decisions.
The next largest holders (BlackRock and Dimensional) own just 3.26% and 2.86%, respectively.
This isn’t necessarily a big risk, because Inberdon’s owner, George Doumet, has held the stock for over 3 decades. Additionally, George’s brother, Antoine Doumet, has served on USLM’s Board of Directors since 1993 and has been Chairman of the Board since 2005.
How to Review on TIKR:
- Open the Ownership tab and review the investors with the highest % of Shares Outstanding Held.
- Look for a large gap between the top holder and the rest.
- Note the holding entity: is it a founder, parent company, or private investment firm?
Interpretation:
High concentration isn’t always a bad thing, especially if the majority owner is aligned with long-term performance.
But it does reduce shareholder influence and can limit liquidity, which matters if that holder ever sells or takes the company private.
Why Insider Buying Can Be a Bullish Signal
Not all insider activity is worth obsessing over, but some of it can be a huge green flag.
Take a recent example from Advanced Micro Devices (AMD). On May 20, 2025, Philip Guido, AMD’s Chief Commercial Officer, bought 8,800 shares at around $113.56 per share.
This wasn’t just a token purchase, it represented a 26.25% increase in his personal stake. He now owns nearly $5M of the stock.
When a senior executive or board member adds significantly to their position like this, it often signals they believe the stock is undervalued or that strong performance is ahead.
In this case, Guido’s purchase came amid broader market uncertainty, which may suggest confidence in AMD’s roadmap or upcoming catalysts.
This type of insider buying can be a meaningful signal, especially when:
- The purchase is large relative to the insider’s existing stake
- It’s done on the open market (not part of a stock grant)
- It happens after a recent dip or flat stretch in the stock
While insider buying alone shouldn’t drive your investment decision, it can be a valuable piece of the puzzle that shows where company insiders are putting their own money to work.
Best Free Tools to Monitor Institutional & Insider Activity
You don’t need to spend thousands on Bloomberg to keep track of who’s buying and selling stocks behind the scenes.
There are plenty of free tools that are easy to use that give you access to institutional ownership trends and insider trading activity.
1. SEC.gov (EDGAR Database)
This is the official source for all insider and institutional filings. If a CEO buys shares or a fund discloses a position, it is filed here first.
- Use Form 4 to see insider trades (buys/sells by executives and board members)
- Use Form 13F to see institutional fund holdings (filed quarterly)
The downside is that SEC.gov presents raw documents with no visual summaries. It is reliable but not user-friendly.
You will need to dig through PDFs, and there is no way to easily track trends or view ownership changes at a glance.
2. OpenInsider
OpenInsider focuses on insider trading and is more accessible than the SEC site. It pulls data from Form 4 filings and organizes it into a clean, searchable table.
You can:
- Filter by insider title (e.g., CEO, CFO)
- Search for recent large buys or cluster buying
- Monitor buying after stock declines
It is one of the most useful free resources for tracking insider buying and selling. However, it does not provide institutional ownership data or tools for deeper company analysis, so it works best when paired with another platform.
3. TIKR
TIKR offers both insider and institutional activity in one place, along with a wide range of additional tools.
While TIKR does offer paid plans, users can access Ownership data and Insider Transactions on TIKR for over 100,000 global stocks for free.
On TIKR, you can:
- Track institutional ownership trends over time
- See 13F filings and how top funds are moving their money
- Monitor real-time insider transactions, including size, price, and role
But TIKR goes even further:
- Full fundamental data, including financials, ratios, and earnings history
- Valuation models, analyst estimates, and target prices
- Global coverage with over 100,000 stocks across U.S. and international markets
- In-depth screener to find the best stocks to buy depending on your preferred investment style
This makes it a strong all-in-one platform for long-term investors. All stock ownership data and insider transaction data is available on TIKR for free, and paid plans come with a 100% money-back guarantee. You really have nothing to lose!
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Red Flags in Institutional Ownership and Insider Activity
Just like insider buying and institutional inflows can be useful signals, there are also signs that should make you pause or dig deeper before making an investment.
These red flags do not always mean a stock is in trouble, but they can suggest potential risks that are not yet visible on the surface.
Here’s what to watch for:
1. Sharp Drop in Institutional Ownership
When large funds start reducing their positions, it is often a sign that their confidence is fading. Institutions tend to do deep research, so a major exit can signal concerns about business performance, valuation, or upcoming challenges.
Even if there is no news yet, institutional investors often move early.
How to track it:
On TIKR, head to the Ownership tab of any stock. There, you can see whether top institutional shareholders are selling the stock.
- On TIKR, go to the Ownership tab for the stock
- In the “Ownership Change” section, see which funds are selling
- Click into 13F filings to review the size and timing of their exits
- Look for multiple large funds reducing exposure at the same time
A steady drop in ownership from several top holders is often worth a closer look.
2. Large Insider Selling (Without Explanation)
If a CEO or CFO suddenly sells a large number of shares without a clear reason, that could be a warning sign.
It is even more concerning when multiple executives sell around the same time, especially if the sales are not part of pre-planned trading programs.
How to track it:
- On TIKR, open the Insider Transactions tab
- See recent insider selling activity
- Sort by transaction size to surface the largest sales
- Review the role of each insider involved (for example, CEO, CFO, or Director)
If you see back-to-back sales from top executives, it could mean they are less confident in the company’s near-term performance.
3. Insiders Who Never Buy Their Own Stock
If insiders never buy shares, even when the stock looks cheap, it might suggest they do not believe in the long-term upside. This absence of buying activity can sometimes say more than a single large sale.
Executives usually only buy with their own money when they see value. A long period with no buying might reflect poor alignment with shareholders.
How to track it:
- In TIKR’s Insider Transactions tab, scroll through the timeline to check for past purchase activity
- Look back over the past few months to see if insiders have ever bought
- Compare this with peer companies to see if insider silence is unusual
If there have been no insider buys in years, it could be a sign of low management conviction. In some cases, silence can speak louder than a sale.
Track institutional ownership & insider trading on over 100,000 global stocks with TIKR >>>
FAQ Section:
What is considered high institutional ownership in a stock?
Institutional ownership is generally considered high when more than 70 percent of a company’s shares are held by large investors such as mutual funds, pension funds, or hedge funds. For large-cap companies, this level of ownership is common and can reflect strong market confidence. In the case of small-cap stocks, even a 30 to 50 percent ownership level may be viewed as significant.
How can I track insider buying and selling activity?
You can track insider trades using free You can monitor insider trading through tools like TIKR, OpenInsider, or the SEC’s EDGAR database. TIKR allows you to view Form 4 filings and provides additional context such as transaction size, insider role, and whether the trade was a purchase or sale.
Is insider buying a reliable indicator for stocks?
Insider buying is often viewed as a positive signal, particularly when several executives purchase shares around the same time. This is sometimes referred to as cluster buying. Although it is not a guarantee of future performance, insider buying suggests that those with the most information about the business believe the stock is undervalued.
Where can I see which funds are buying or selling a stock?
Institutional buying and selling activity is available through the Ownership section on TIKR, which aggregates 13F filings. This allows you to review which funds are increasing or reducing their positions and to observe ownership trends over time.
What does it mean if institutional ownership is dropping?
A decline in institutional ownership from one quarter to the next may indicate reduced confidence among large investors. This trend could be driven by earnings underperformance, weakening fundamentals, or broader sector challenges. If you see ownership decreasing, it is often worth investigating the underlying reasons.
TIKR Takeaway
Tracking insider buying and institutional ownership gives you a powerful edge, especially when you can see it all in one place.
On TIKR, you can spot fund inflows, monitor insider activity, and cross-reference valuation data in seconds. Use it to find stocks where the smart money is moving in before the crowd catches on.
The TIKR Terminal offers industry-leading financial data on over 100,000 stocks, so if you’re looking to find the best stocks to buy for your portfolio, you’ll want to use TIKR!
TIKR offers institutional-quality research for investors who think of buying stocks as buying a piece of a business.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
