Exploring National Research Corporation (NRC) Investor Profile: Who’s Buying and Why?

You're looking at National Research Corporation (NRC) and seeing a disconnect: the stock price has been volatile, yet the operational metrics and institutional interest tell a more complex story. The 'who' is clear-it's a small-cap stock, valued at roughly $357.76 million as of November 2025, but with a massive institutional footprint, where firms like Kayne Anderson Rudnick Investment Management LLC and BlackRock, Inc. collectively hold over 51% of the outstanding shares. But the real question is the 'why' are they still buying, especially when BlackRock, Inc. increased its stake by 6.34% in the second quarter alone?

The answer is in the fundamentals that defintely point to a turnaround: the company's Q3 2025 earnings, released in late October, showed Total Recurring Contract Value (TRCV) climbed 8% year-over-year to $141.7 million, plus net cash from operating activities surged by a massive 46% to $13.8 million. This suggests smart money is focusing past the near-term noise on the core business's ability to generate cash and lock in long-term revenue. Are you positioned to capitalize on this divergence between market sentiment and institutional accumulation? Let's break down who is driving this ownership structure and what their investment thesis really is.

Who Invests in National Research Corporation (NRC) and Why?

You're looking at National Research Corporation (NRC) and wondering who is buying this stock and what their endgame is. The quick takeaway is that the investor base is heavily weighted toward institutions, which are betting on the company's high-efficiency model and its aggressive capital return program, even as it navigates a tricky revenue environment.

The investor profile for National Research Corporation is a fascinating mix of large, passive funds and more active, value-oriented managers. It's not a stock dominated by retail traders; the real action is institutional. As of the most recent filings in late 2025, institutional investors and hedge funds collectively own a significant stake, ranging between 47.26% and 51.36% of the total shares outstanding. That's a clear majority of the float.

Here's the quick math on the institutional footprint: these firms hold a total of over 15.2 million shares, with a total value of holdings around $170 million as of the third quarter of 2025. This shows a serious commitment from major players. You see names like BlackRock, Inc., Vanguard Group Inc, and Morgan Stanley among the top holders, which often means the stock is included in broad-market index funds and large-cap portfolios. To be fair, smaller, more specialized funds like QV Investors Inc. are also increasing their positions, showing conviction in the stock's current valuation.

• BlackRock, Inc.: Holds a substantial position, indicating inclusion in major index funds.
• Vanguard Group Inc: Another large passive holder, focused on long-term market exposure.
• Kayne Anderson Rudnick Investment Management Llc: Often represents a more active, fundamental investment approach.

Investment Motivations: Income and Efficiency

The primary draw for investors in National Research Corporation is twofold: a high-efficiency business model and a strong commitment to returning capital. The company, which provides insightful analytics to the healthcare sector (you can read more about their business model here: National Research Corporation (NRC): History, Ownership, Mission, How It Works & Makes Money), boasts an impressive Return on Equity (ROE) of 66.87%. This figure is a huge signal of management's ability to generate profits from shareholder capital, making the company a defintely attractive bet for efficiency-focused investors.

For income-focused investors, the dividend is a major incentive. The stock offers a dividend yield of 3.37%, and the Board of Directors recently declared a quarterly cash dividend of $0.16 per share, representing a 33% increase from the previous quarter. This aggressive payout, with a payout ratio of 67.61%, shows management's confidence in its cash flow, even as it faces some headwinds. For example, cash flow from operations surged by 46% year-over-year to $13.8 million in Q3 2025, which gives them the room to pay that dividend.

The growth story is also centered on the subscription model. The Total Recurring Contract Value (TRCV) increased by 8% year-over-year to $141.7 million in the third quarter of 2025. This metric is crucial because it signals predictable, long-term revenue streams, which is what many institutional investors look for to anchor their valuations.

Investment Strategies: Value, Income, and Capital Return

The strategies employed by the investor base map directly to these motivations. You see three main approaches at play:

1. Long-Term Income & Passive Investing: The large index funds and income-oriented mutual funds are essentially long-term holders. They are attracted by the consistent dividend and the company's strong market position in healthcare analytics, which is a defensive sector. They buy and hold, relying on the steady cash flow and dividend checks.

2. Value and Turnaround Investing: This is where the stock gets interesting. The share price declined by over 33% from September 2024 to September 2025. This drop, combined with a relatively low Price-to-Earnings (P/E) ratio of 17.4 compared to the Health Care Providers & Services industry median of 20.7, makes it a classic value play. Investors are betting that the recent revenue decline will stabilize, and the stock will revert to a higher valuation multiple. They see a discount.

3. Capital Allocation Focus: A final, powerful strategy is driven by the company's aggressive capital return policy. In 2025 alone, the company returned a total of $28.1 million to shareholders through dividends and stock repurchases. During the third quarter, National Research Corporation repurchased 618,264 shares at a weighted average price of $14.99 per share. This strategy appeals to investors who prioritize shareholder yield, believing that buying back undervalued stock is the best use of cash. It's a sign of a management team that is focused on boosting Earnings Per Share (EPS) by reducing the share count.

Here's a snapshot of the value proposition:

What this estimate hides is the risk of sustained revenue decline, but the recurring contract value growth suggests the underlying business is still securing long-term clients. For you, the action is to watch the TRCV and cash flow from operations; if those metrics hold, the value and income thesis remains intact.

Institutional Ownership and Major Shareholders of National Research Corporation (NRC)

If you're looking at National Research Corporation (NRC), the first thing to understand is that institutional investors-the big money managers like mutual funds and pension funds-hold the majority of the stock. This isn't just a retail-driven story; the institutions own the room. Specifically, institutions hold approximately 56% of the outstanding shares, which translates to a high degree of control over the company's stock price and strategic direction.

When institutions own more than half of the equity, the board of directors defintely has to pay close attention to their preferences. The trading actions of this group, often called 'smart money,' have a significant sway, meaning the stock can be highly sensitive to their collective buying or selling.

Top Institutional Investors: Who's Buying and Why?

The investor profile for National Research Corporation is dominated by a few major players, primarily large asset managers and specialized small-cap funds. As of the most recent filings (Q2/Q3 2025), the total value of institutional holdings stood around $170 million.

The largest institutional holder is Kayne Anderson Rudnick Investment Management, LLC, a firm known for its focus on small-cap growth. Their conviction is clear, but they aren't alone. BlackRock, Inc. and The Vanguard Group, Inc., two of the world's largest asset managers, also hold substantial positions, likely through their index and passively managed funds.

Here's a quick look at the top institutional holders, based on June 30, 2025, 13F filings:

These firms are buying into a company with an impressive Return on Equity (ROE) of 66.87% and a solid dividend yield of 3.37%, which is attractive for both growth and income-focused portfolios, even with a recent revenue growth decline of 3.40%.

Recent Shifts in Institutional Ownership: A Mixed Signal

The recent activity shows a mixed picture, which is common in a volatile market. The total number of institutional owners is high at 287, but the movement among the largest holders indicates a cautious re-evaluation.

For example, in the second quarter of 2025, the largest holder, Kayne Anderson Rudnick Investment Management, LLC, slightly trimmed their position by -1.25%, selling 37,784 shares. Similarly, The Vanguard Group, Inc. reduced their stake by -1.44%. This suggests some profit-taking or a slight reduction in conviction from long-term holders.

But it's not all selling. BlackRock, Inc. actually increased its position by a significant 6.34%, adding 71,101 shares. Morgan Stanley also raised its stake by 2.25%. Plus, smaller but active managers like AQR Capital Management LLC and Hotchkis & Wiley Capital Management Llc showed strong conviction, increasing their shares by 86.2% and 69.397%, respectively, in mid-2025.

• Kayne Anderson Rudnick: Decreased stake by 1.25% QoQ.
• BlackRock, Inc.: Increased stake by 6.34% QoQ.
• AQR Capital Management LLC: Increased stake by 86.2% (as of August 2025).

What this tells us is that while some are scaling back, others are stepping in, seeing the recent stock weakness-including a one-year loss of 62% as of early 2025-as a buying opportunity.

The Impact of Institutional Investors on NRC's Strategy

Given the high institutional ownership, these investors are a critical factor in National Research Corporation's corporate strategy and stock performance. Their collective action can move the stock price fast. When they all change their view at once, you see a sharp drop.

The good news is that the company's fundamentals, like its strong free cash flow of $7,492,625 as of November 2025, provide a solid buffer that appeals to these large, sophisticated investors. For a deeper dive into the company's core business model that attracts this institutional capital, you can review National Research Corporation (NRC): History, Ownership, Mission, How It Works & Makes Money.

Institutional investors are pushing for value. With the stock having seen significant volatility, they will be scrutinizing management's execution on growth initiatives and efficiency. Their presence acts as a powerful governance mechanism, ensuring management remains focused on maximizing shareholder returns, especially through efficient capital deployment and maintaining that strong ROE. If performance lags, expect them to pressure the board for clear strategic changes. They hold the majority, and they know it.

Key Investors and Their Impact on National Research Corporation (NRC)

If you're looking at National Research Corporation (NRC), the key takeaway is that the shareholder base is a mix of deeply committed insiders and large, influential institutional funds. This structure creates a tug-of-war between long-term strategic vision and short-term market performance, which has been volatile in 2025.

The Anchor Investors: Insiders and Top Funds

The ownership structure at National Research Corporation is top-heavy, meaning a few major players hold significant sway. Insiders-people like executives and directors-own a substantial 17% of the company, with former CEO Thomas Richardson being the largest overall shareholder as of early 2025. This level of insider ownership is defintely a strong signal; it shows the people running the business have a lot of their own capital at risk.

On the institutional side, the big money is concentrated. Funds own between 47.26% and 56% of the stock, making their trading activity a major driver of the share price. The board must listen to them. The top institutional holders, based on recent 13F filings, include some names you'd recognize from any major portfolio, like BlackRock, Inc. and Vanguard Group Inc, which typically hold passive stakes. But the real influence often comes from the more active managers.

• Kayne Anderson Rudnick Investment Management Llc: Largest institutional holder, owning about 13% of common stock.
• BlackRock, Inc.: Holds a significant stake of about 5.2%.
• QV Investors Inc.: A key institutional player that recently increased its position.

Investor Influence: Why Their Moves Matter

With institutional investors holding more than half the stock, their collective sentiment is a powerful force. When a group this large changes its view on a stock, you see rapid price movement. For National Research Corporation, this sensitivity was clear following a one-year loss of 62% leading up to February 2025, which put immense pressure on these large funds. They lost a lot of value, so they're looking for a clear path to recovery.

The high institutional ownership also directly impacts corporate governance (the system of rules, practices, and processes by which a company is directed and controlled). Since they control the majority of votes, the board's strategic decisions-like the appointment of a new CEO, Trent Green, and capital allocation-must align with their interests. A new CEO is a big deal, and it's a direct response to the need for strategic revitalization demanded by shareholders. Check out the company's core principles here: Mission Statement, Vision, & Core Values of National Research Corporation (NRC).

Recent Moves and Clear Actions in 2025

The trading activity in 2025 shows a mixed, but telling, picture. Some investors are selling, but others are clearly buying the dip, seeing value in the healthcare data space despite the short-term struggles. This is where the rubber meets the road.

Here's a quick snapshot of notable 2025 activity:

The company itself has been highly active in returning capital to shareholders, a move that often placates large investors. In 2025 alone, National Research Corporation returned a total of $28.1 million to shareholders through dividends and stock repurchases. In Q3 2025, they repurchased 618,264 shares at an average of $14.99 per share. Plus, they announced a 33% increase in the quarterly cash dividend to $0.16 per share, payable in January 2026. This is a direct, concrete action to boost shareholder value and signals management's belief that the stock is undervalued.

What this estimate hides, though, is whether the new CEO's strategy can quickly reverse the Q2 2025 net loss of $(106,000) and the significant rise in selling, general, and administrative expenses, which were up 58% year-over-year to $17,734,000. The investors who are buying now are betting on the successful execution of that turnaround.

Market Impact and Investor Sentiment

You're looking at National Research Corporation (NRC) and wondering if the big money is bullish or bearish, especially after a volatile 2025. The short answer is: institutional sentiment is currently a cautious 'neutral with an opportunity bias,' driven by strong operational cash flow and a high dividend, but tempered by long-term revenue concerns.

Institutions hold the majority of the stock, with a significant 57% ownership stake, meaning their trading actions have a huge impact. When the stock dropped in the first half of the year, these investors took the biggest hit, which defintely raised alarms and created pressure to sell. But, the recent Q3 2025 results have provided a much-needed shot of confidence, shifting the near-term outlook from negative to cautiously positive.

• Kayne Anderson Rudnick Investment Management holds the largest institutional stake at 13.18%.
• BlackRock, Inc. is a key holder with 5.26% of shares.
• The Vanguard Group, Inc. holds 4.06%, maintaining a significant presence.

The core of the positive sentiment is the company's ability to generate cash despite a mixed income statement. For a deeper dive into the raw numbers, check out Breaking Down National Research Corporation (NRC) Financial Health: Key Insights for Investors.

Recent Market Reactions to Ownership Shifts

The stock market's response to ownership moves in 2025 has been a clear indicator of the underlying tension between operational strength and market risk. After a period of significant losses, the stock price of National Research Corporation (NRC) experienced a strong rebound, rising by 16.47% in the two weeks leading up to November 18, 2025, closing at $16.05. This surge was largely a reaction to the October 2025 earnings report, which highlighted a substantial increase in cash flow and a commitment to shareholder returns.

This positive reaction shows that the market is rewarding tangible financial achievements, especially the company's strong cash generation. For example, in Q3 2025, cash flow from operations surged by 46% year-over-year to $13.8 million. Plus, the Board of Directors declared a quarterly cash dividend of $0.16 per share, a meaningful 33% increase from the prior quarter, which signals management's confidence and commitment to income-focused investors. That's a powerful signal in a high-interest-rate environment.

Analyst Perspectives on Key Investors' Impact

Analyst coverage for National Research Corporation (NRC) is surprisingly thin, which means the influence of major institutional holders like BlackRock, Inc. and The Vanguard Group, Inc. is even more pronounced. The lack of widespread analyst consensus (or 'flying under the radar,' as some see it) means the stock is more susceptible to the trading patterns of these big players.

The analysts who do cover the stock are split. Some see the high Return on Equity (ROE) of 66.87% and the Total Recurring Contract Value (TRCV) of $141.7 million (up 8% year-over-year in Q3 2025) as proof of a fundamentally sound, sticky business model in the healthcare analytics space. But, a realist view suggests the company is a turnaround story, not a compounder, with one analyst suggesting a fair value in the $9-$10/share range, significantly below the current trading price. This gap is the real risk.

Here's a quick snapshot of the Q3 2025 performance that's driving the current debate:

The action item here is clear: watch the TRCV. If that $141.7 million figure continues to climb, it validates the institutional bet on the recurring revenue model, overriding the short-term revenue contraction concerns. If it stalls, the lower fair value estimates will start to look a lot more compelling.