Key Insights

• Institutions' substantial holdings in Porch Group implies that they have significant influence over the company's share price

• A total of 9 investors have a majority stake in the company with 50% ownership

• Insiders own 21% of Porch Group

If you want to know who really controls Porch Group, Inc. (NASDAQ:PRCH), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

In the chart below, we zoom in on the different ownership groups of Porch Group.

Check out our latest analysis for Porch Group

What Does The Institutional Ownership Tell Us About Porch Group?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Porch Group does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Porch Group's historic earnings and revenue below, but keep in mind there's always more to the story.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Porch Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Matthew Ehrlichman with 19% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 4.3% of the stock.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.