Key Insights

• Given the large stake in the stock by institutions, Titan International's stock price might be vulnerable to their trading decisions

• The top 7 shareholders own 52% of the company

• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in Titan International, Inc. (NYSE:TWI) should be aware of the most powerful shareholder groups. With 71% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's delve deeper into each type of owner of Titan International, beginning with the chart below.

See our latest analysis for Titan International

What Does The Institutional Ownership Tell Us About Titan International?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Titan International already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Titan International's earnings history below. Of course, the future is what really matters.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Titan International. Our data shows that BlackRock, Inc. is the largest shareholder with 14% of shares outstanding. MHR Fund Management LLC is the second largest shareholder owning 13% of common stock, and The Vanguard Group, Inc. holds about 6.0% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.