Shopify Inc.'S (NYSE:SHOP) Institutional Investors Lost 5.8%

Reference: Found here

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

No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 5.8% in value last week. However, the 42% one-year returns may have helped alleviate their overall losses. We would assume however, that they would be on the lookout for weakness in the future.

Let's take a closer look to see what the different types of shareholders can tell us about Shopify.

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 Shopify does have institutional investors; and they hold a good portion of the company's stock. 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 Shopify's earnings history below. Of course, the future is what really matters.

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.