Institutional Sponsorship

The 3 main things to keep in mind in this situation are:

• Increase in the number of funds owning the stock in recent quarters, usually by a very large margin

• The average trading volume of 400,000 or more near the time of entering the stock.

According to Investors.com, "'Institutional sponsorship' simply refers to ownership of a stock by mutual funds, banks, pension funds, and other large institutions. These professional investors have teams of analysts researching thousands of stocks, so it's good confirmation to see them buying a stock you're considering. It's even better to see the number of funds rising quarter over quarter since it indicates increasing demand for the stock."

Institutional Sponsorship | Stock News & Stock Market .... https://www.investors.com/ibd-university/can-slim/institutional-sponsorship/

Please keep in mind that this is strictly my analysis and opinion. Financial actions should not be based solely upon the opinions of this one article. Please read my disclaimer for further information.