Institutional Investor Ownership PercentageView Financial Glossary Index
Institutional Ownership Percentage is the percentage of shares outstanding that is owned by financial institutions. These institutions can be banks, funds, large holdings companies, etc.
Institutional ownership percentage is typically looked at by investors as a risk metric. The thinking is that if institutional ownership is high for a particular stock, a security will be less risky. The reason being, it is not in institutional investors best interest to lose on their investments, therefore they will be purchasing "winning" stocks.
Institutional Investor Ownership Percentage = Shares Owned By Institutional Investors / Shares Outstanding
This metric is updated monthly.