Often institutional investors tend to react to short term events. It's debatable if they are good for a stock
Peter Lynch, in his best-seller "One Up on Wall Street" lists the 13 characteristics of the perfect stock. One of them is this: "Institutions don't own it and the analysts don't follow it". Lynch favors stocks that the big investment groups overlook because these stocks have more of a chance of being undervalued. Lynch argues that companies whose stock is owned by institutional investors are fairly valued, if not overvalued."