What is Net Institutional Flow?
We track SEC filings to see which large investors are buying and the total dollar amount of those purchases and subtract investors who are selling and the total dollars sold. A high rating means that more institutions are buying than selling.
How to use Net Institutional Flow?
High Net Institutional Flow (80+) indicates there is much more buying of stock and call options than selling or buying of put options. Low Net Institutional Flow (<20) indicates institutions are selling stock or buying put options more than selling stock or buying call options. The big caveat with this signal is that SEC filings can be 1+ months after an institution has traded in or out of a stock. It is generally a bad idea to bet against a stock with high Net Institutional Flow or for a stock with low Net Institutional Flow however there are plenty of exceptions including the reporting delay mentioned above so as with all the signals do not rely solely on this one.
Update Frequency and Usage for Net Institutional Flow
Net Institutional Flow updates once per day. As these are driven by 13F and 13G filings which are fairly infrequent, this is a fine refresh timetable. Checking this number once a day is more than enough as a result. It is classified as a short term signal though, because when this number does move, such as when a well-known institution takes a position in a stock, this could cause a sharp move in the short term.