Clusters & Dimensions
Market Behaviour
Institutional ownership, changes in that ownership, and other signals about how the market is positioned in a stock.
The Market Behaviour cluster captures signals about who owns a stock and how that ownership is shifting. These dimensions are particularly relevant to news that might trigger institutional repositioning — earnings surprises, index inclusion or exclusion, sector rotation signals, and changes in the macro outlook that prompt fund managers to reweight.
Institutional Appeal
The percentage of shares outstanding held by institutional investors (mutual funds, ETFs, pension funds, hedge funds). High institutional ownership generally indicates that the stock meets the liquidity, size, and quality standards that large funds require. It also means the stock is well-researched and closely watched.
Higher score = better as a signal of quality and market participation.
Institutional Ownership Change
The quarter-over-quarter change in the number of institutional shares outstanding, expressed as a percentage of total shares. Net buying by institutions is a positive signal — large, sophisticated investors are increasing their conviction. Net selling can be an early warning, especially if it occurs without an obvious news catalyst.
Higher score = better.
Short Squeeze Potential
A composite of short interest as a percentage of the float and days-to-cover. When a stock has high short interest and low float, any positive catalyst — an earnings beat, a buyout rumour, or a major news event — can force short sellers to cover simultaneously, driving the price up sharply and rapidly. This dimension identifies stocks where the upside on positive news can be amplified by short covering.
Higher score = better as a signal of potential explosive upside on positive catalysts.
Earnings Surprise Volatility
The standard deviation of EPS surprise magnitude over the last eight quarters — how much the company has beaten or missed analyst consensus estimates, and by how much. High volatility indicates that the company is difficult to forecast: it swings between large beats and large misses. This creates elevated event risk around earnings dates and makes the stock harder to own with confidence.
Higher score = worse for investors who prefer predictable outcomes.