The number of institutional holdings directly reflects the degree of participation of institutional investors in a certain stock. A higher number of institutional holdings is usually interpreted as a positive signal, indicating that the stock is recognized by more professional investors and may have information advantages. In addition, since institutional investors usually prefer companies with solid fundamentals, this indicator also reflects the quality and investment value of the company to a certain extent. However, it should be noted that the interpretation of this indicator is not absolute and still needs to be combined with other fundamentals, technical aspects, market sentiment and other factors for comprehensive analysis. In addition, the number of institutional holdings also has a lag, because it reflects historical data and does not represent the future holding preferences of institutions.