Exploring NiSource Inc. (NI) Investor Profile: Who’s Buying and Why?

Are you looking at NiSource Inc. (NI) and wondering who's actually driving the buying volume, or if the stock is just a utility-sector placeholder in a massive fund? Honestly, the investor profile for NiSource is defintely a story of institutional conviction; a staggering 91.64% of the stock is held by hedge funds and other institutional investors, making it a classic anchor for stability. We're talking about giants like Vanguard Group Inc and BlackRock, Inc. holding significant stakes, but the real action is in the recent shifts: while some, like Duff & Phelps Investment Management Co., trimmed their position by 6.1%, others like Intech Investment Management LLC ramped up their ownership by 48.4% in the second quarter alone. Why the tug-of-war? It maps directly to the company's regulated growth story and clear financials, including a reaffirmed 2025 non-GAAP adjusted EPS guidance of $1.87 to $1.89 and a reliable annual dividend of $1.12 per share, giving a solid 2.61% forward yield. This isn't a high-flyer, but it's a foundational utility making a $20 billion infrastructure investment over five years, which is exactly the kind of programmatic growth that attracts the big money.

Who Invests in NiSource Inc. (NI) and Why?

The investor base for NiSource Inc. (NI) is overwhelmingly institutional, a typical profile for a regulated utility, but the motivations are shifting beyond simple stability. You see major financial players buying in because the company offers a rare combination in the utility sector: solid, predictable income plus a significant, near-term growth story driven by massive infrastructure spending.

Honestly, this isn't a stock for the day-trader. It's a long-term capital deployment vehicle. As of late 2025, a staggering 91.64% of NiSource Inc.'s stock is held by institutional investors, including hedge funds, mutual funds, and pension funds. This leaves only about 5.21% for public companies and individual, or retail, investors.

• Institutional Investors: Own 91.64% of shares. This includes giants like Vanguard Group Inc and BlackRock, Inc..
• Retail Investors: Hold roughly 5.21% of the stock. They are often attracted by the reliable dividend.
• Insiders: Directors and executives own a small, but important, 0.27%.

The Core Investment Motivations: Stability Meets Growth

Investors are attracted to NiSource Inc. for three clear reasons: the stability of its regulated market position, its commitment to a growing dividend, and a newly energized growth outlook.

Regulated Stability and Income

As a multi-utility providing natural gas and electric services across six states, NiSource Inc. operates within a regulated framework. This means its earnings are generally predictable, tied to its rate base (the value of its assets on which it is allowed to earn a return). This stability is the bedrock for long-term holders. The company has paid an annual dividend of $1.12 per share, representing a yield of around 2.60%. It has also increased its dividend for 14 consecutive years, which is a strong signal of financial discipline and reliability for income-focused investors. The payout ratio is a healthy 59.26% of trailing earnings, suggesting the dividend is sustainable.

Massive Capital-Driven Growth

The game-changer for NiSource Inc.'s investment profile is its capital expenditure plan. The company has laid out a consolidated capital plan of $28 billion through 2029, a 45% increase over the previous five-year plan. This money is going into modernizing infrastructure, transitioning to renewable energy-including retiring coal-fired generation by 2028-and a major new push into data center development. This spending is why management reaffirmed its 2025 adjusted earnings per share (EPS) guidance to the upper half of the $1.85 to $1.89 range, and why they project a long-term annual EPS growth rate of 6%-8%. Here's the quick math: a utility growing earnings at 6%-8% is a growth stock, period. You can read more about the company's foundation here: NiSource Inc. (NI): History, Ownership, Mission, How It Works & Makes Money.

Investment Strategies in Play

The types of investors holding NiSource Inc. shares dictate the strategies you see in the market. The high institutional ownership means the stock is primarily driven by long-term, fundamental analysis.

Long-Term Holding (Buy-and-Hold)

This is the dominant strategy. Large institutions, including pension funds and index funds, treat NiSource Inc. as a defensive stock (a stock that holds up well during economic downturns) that provides predictable returns. They are essentially buying a stake in future regulated cash flows. Their focus is on the long-term annual growth target of 6%-8% in EPS, which is excellent for a utility. They are defintely looking past any short-term earnings miss, like the Q3 2025 adjusted EPS of $0.19 which slightly missed the consensus.

Growth-at-a-Reasonable-Price (GARP)

Many investors view NiSource Inc. through a GARP lens, which is a blend of value and growth investing. They see the stock as a utility (value) but with a significant growth kicker from the energy transition and the new data center contracts, which are a huge electricity load opportunity. They are betting that the $28 billion in capital expenditures will translate directly into a larger rate base, which in turn guarantees higher future earnings, making the stock's current valuation justifiable.

Dividend Reinvestment Strategies

For both retail and institutional income funds, a key strategy is dividend reinvestment (DRIP). With a consistent dividend and a history of increases, investors can compound their returns efficiently. The stock's stability makes it a core holding for portfolios that need to generate reliable, growing income without the volatility of other sectors.

Institutional Ownership and Major Shareholders of NiSource Inc. (NI)

You want to know who is buying NiSource Inc. (NI) and why, and the direct takeaway is that this utility is overwhelmingly owned by large, passive institutional money. As of the latest 2025 filings, institutional investors own a staggering 91.64% of NiSource's stock, which means they are the primary drivers of its valuation and long-term capital strategy.

Top Institutional Investors and Their Stakes

The investor profile for NiSource Inc. is exactly what you'd expect for a stable, regulated utility: it's dominated by the world's largest index and asset managers. These firms aren't looking for a quick flip; they are buying long-duration, defensive assets to match their massive, long-term liabilities. Here's the quick math on the top holders from the Q2 2025 filings, which represent the bulk of the 2025 fiscal year data:

• Vanguard Group Inc.: Held 61,422,062 shares, valued at approximately $2.477 billion.
• BlackRock, Inc.: Held 48,391,367 shares, valued at roughly $1.952 billion.
• T. Rowe Price Investment Management Inc.: Held 40,716,565 shares, valued at about $1.642 billion.
• State Street Corp: Held 24,726,001 shares, valued at nearly $997.4 million.

These four firms alone account for a massive portion of the total institutional ownership. Their presence signals confidence in the regulated rate base (the value of assets on which a utility is permitted to earn a return) and the company's predictable cash flow. It's a classic defensive play.

Recent Shifts in Ownership: Who's Moving?

While the overall institutional ownership percentage is high and stable, the second and third-tier funds are constantly adjusting their positions. This is where you find the active managers making decisions based on near-term risks and opportunities. Looking at Q2 2025 activity, we saw a clear pattern of accumulation from several key players, but also some notable trimming.

For example, Geode Capital Management LLC, a significant holder, increased its stake by 1.0%, adding 124,868 shares to bring its total to 12,243,523 shares. Similarly, Goldman Sachs Group Inc. made a massive move, increasing its position by 88.9% in Q1 2025. That's a defintely bullish signal from a major investment bank. Still, not everyone was buying; Duff & Phelps Investment Management Co. lowered its holdings by 6.1%, selling 217,226 shares, though they still hold over 3.3 million shares.

The net effect is a high-conviction environment where the majority of institutional money is staying put, but a few active funds are making big bets on the company's growth plan. You can see more details on the company's financial stability in Breaking Down NiSource Inc. (NI) Financial Health: Key Insights for Investors.

The Impact of Large Investors on Strategy

The sheer volume of institutional ownership-over 90%-means these firms don't just own the stock; they effectively govern the company's strategic direction, particularly its capital allocation. For a utility like NiSource Inc., this influence centers on two things: stable dividend policy and funding the massive infrastructure investment required for the clean energy transition.

These investors demand predictable returns. NiSource Inc.'s FY 2025 earnings per share (EPS) guidance of $1.87 to $1.89 is a key metric they watch closely. Any deviation impacts their models. More importantly, the company's recent announcement of a $1.5 billion At-The-Market (ATM) Equity Issuance Program through 2028 is a direct consequence of this institutional dynamic. This program allows NiSource Inc. to sell new shares over time to fund its capital expenditures (CapEx) for infrastructure upgrades-a common practice in the utility sector-but it also dilutes existing shareholders. Institutional investors accept this dilution because they want the company to fund its high-growth CapEx plan, which ultimately grows the rate base and, thus, future earnings and dividends.

The table below summarizes the stakes of the top five institutional holders as of the most recent filings (Q2/Q3 2025), showing the scale of their commitment:

What this estimate hides is the long-term pressure for environmental, social, and governance (ESG) compliance, which these massive holders increasingly enforce. Their buying is a vote of confidence in NiSource Inc.'s transition to cleaner energy sources.

Key Investors and Their Impact on NiSource Inc. (NI)

If you're looking at NiSource Inc. (NI), the first thing to grasp is that this is a stock overwhelmingly owned by institutions-the big players. This isn't a retail-driven story; it's a regulated utility play where institutional holders own between 91.64% and 95.08% of the company's stock. That high concentration means their long-term view on the utility's capital expenditure (CAPEX) plan and regulatory environment is what truly drives the stock's stability and valuation.

The investor profile is dominated by the giants of passive and active money management. As of the most recent 2025 filings, the top shareholders are exactly who you'd expect in a large, stable utility, holding massive stakes that anchor the stock's ownership structure.

Here's the quick math: Vanguard and BlackRock alone control nearly a quarter of the company. Their influence is less about activist demands and more about ensuring governance aligns with the long-term, low-volatility returns expected from a regulated entity. They want predictable growth, not aggressive, risky maneuvers.

Investor Influence: Supporting the Regulated Growth Model

Unlike a tech stock, NiSource Inc.'s valuation is tied to its rate base-the total value of its assets on which regulators allow it to earn a return. The major institutional investors, especially the passive index funds like Vanguard Group Inc. and BlackRock, Inc., exert their influence by supporting the company's core strategy: a massive, multi-year infrastructure investment plan. This plan is the engine for future earnings growth.

NiSource Inc. has committed to a $19.4 billion multi-year regulated infrastructure spending plan through 2029, a cornerstone of its growth strategy. The institutional support for this level of capital investment is crucial because it gives the company the confidence to execute. This robust investment, much of it rate-based, provides strong visibility over future earnings and is projected to drive a 6%-8% annual earnings per share increase.

• High institutional ownership signals confidence in regulatory stability.
• Influence is exerted through governance and capital allocation approval.
• The focus is on long-term, regulated returns, not short-term stock pops.

To be fair, the influence also works the other way: if the company fails to secure regulatory approvals for rate increases-like the $297 million secured in a recent quarter-the stock price defintely feels the pressure. The big funds are essentially betting on the company's ability to navigate the complex regulatory landscape in its six operating states.

Recent Notable Moves in 2025

The recent trading activity in 2025 shows a mixed, but largely supportive, picture of institutional sentiment, reflecting the ongoing strategic shift and capital needs of the company. The largest funds are generally adding to their positions, but some hedge funds are taking profits or reallocating capital.

In Q1 2025, we saw significant accumulation from core holders. Vanguard Group Inc. added over 3 million shares, increasing its stake by 5.3%, and T. Rowe Price Investment Management, Inc. boosted its holdings by 12.4%, adding over 2.65 million shares. This is a strong vote of confidence in the long-term regulated utility thesis. You can get a deeper dive into the fundamentals by Breaking Down NiSource Inc. (NI) Financial Health: Key Insights for Investors.

However, some large hedge funds made notable exits. Millennium Management LLC removed a massive 7.8 million shares (a -84.4% reduction) in Q1 2025, and JPMorgan Chase & Co. also trimmed its position by nearly 4.05 million shares (-28.9%). This selling action by more tactical investors suggests some short-term profit-taking or a rotation out of the sector, but it was largely absorbed by the long-term institutional buyers, keeping the stock's overall institutional ownership high.

• Vanguard added 3.05 million shares in Q1 2025, showing conviction.
• Duff & Phelps Investment Management Co. sold 217,226 shares in Q2 2025, trimming their stake by 6.1%.
• The net effect is a high institutional floor, despite some hedge fund turnover.

The takeaway is clear: the majority of the institutional money is comfortable with the company's capital-intensive, regulated growth trajectory, even as some short-term players rotate out. The buy-side conviction is centered on the projected FY 2025 earnings per share (EPS) guidance of $1.87 to $1.89.

Market Impact and Investor Sentiment

You're looking at NiSource Inc. (NI) and trying to figure out if the big money-the institutional investors-still believes in the story, and honestly, the answer is a qualified 'yes.' The current investor sentiment is firmly a Moderate Buy based on the consensus of Wall Street analysts, which is a strong signal in the utility sector.

The core of this belief is the stability of a regulated utility combined with a clear capital expenditure plan. Institutional ownership is exceptionally high, sitting at approximately 91.64% of the stock. That means nearly all of the float is held by hedge funds, mutual funds, and pension funds, not individual retail investors. This level of concentration provides a stable, albeit sometimes slow-moving, investor base.

Here's the quick math on who holds the keys, using data reported as of late Q3 2025:

• The Vanguard Group, Inc. holds the largest stake: 61,375,903 shares, valued around US$2.7 billion.
• BlackRock, Inc. is the second largest, with 48,207,237 shares, valued at roughly US$2.1 billion.
• T. Rowe Price Group, Inc. rounds out the top three, holding 44,111,059 shares.

These firms are buying and holding because they see a clear line of sight to regulated earnings growth, which is exactly what a utility is supposed to deliver. It's a classic defensive play with a growth kicker.

Recent Market Reactions and Ownership Shifts

The market reacts strongly to anything that threatens the regulatory certainty of a utility, and NiSource Inc. (NI) is no exception. We saw a clear example in September 2025 when shares fell 6% following news of regulatory commission changes in Indiana. The worry was that this shakeup could delay the crucial Genco spinoff, the subsidiary focused on data center power. This is a perfect example of how regulatory risk, not just financial performance, can move the stock overnight.

On the financial side, the reaction to the Q3 2025 earnings report in late October was mixed but generally positive on the outlook. The company reported quarterly earnings per share (EPS) of $0.19, which was a slight miss against the consensus estimate of $0.20. But, the revenue of $1.27 billion significantly beat the analyst consensus of $983.25 million, which helped cushion the stock's fall. The market tends to forgive a minor EPS miss if the revenue and forward guidance are strong. Also, the follow-on equity offering of approximately US$852.5 million completed in late October 2025 gives the company financial flexibility, but it does introduce short-term share dilution risk for existing holders. It's a necessary evil to fund their massive capital plan.

Analyst Perspectives on Key Investors and Future

Analysts are bullish on NiSource Inc. (NI) primarily because of the company's commitment to its infrastructure investment plan and the potential upside from the data center opportunity. The consensus price target from analysts is currently around $45.78 to $46.78, suggesting a near-term upside of 6.29% to 9.10% from the current trading price. This outlook is tied directly to the company's ability to execute on its capital plan and regulatory strategy.

The major institutional investors, like BlackRock and Vanguard, are seen as stabilizing forces. Their large, passive holdings reduce volatility and signal long-term confidence in the utility model. When a firm like T. Rowe Price increases its position-as they did with a 6.23% change reported in Q3 2025-it's a sign that active managers are also seeing value.

The key numbers for the 2025 fiscal year that underpin this perspective are defintely the reaffirmed non-GAAP adjusted EPS guidance of the upper half of $1.85 to $1.89, and the robust Q1 2025 adjusted EPS of $0.98. This strong Q1 performance, which achieved over 52% of the projected midpoint earnings, sets a high bar for the rest of the year. For a deeper dive into the company's foundation, you should check out NiSource Inc. (NI): History, Ownership, Mission, How It Works & Makes Money.

The analyst view is simple: the capital plan is the engine. The Genco spinoff is the turbocharger. If the company can successfully navigate the regulatory hurdles for the Genco separation, which is tied to nearly $7.0 billion in strategic data center investments, the stock has a clear path to the high end of its price targets.