Exploring Forrester Research, Inc. (FORR) Investor Profile: Who’s Buying and Why?

You've seen the headlines: Forrester Research, Inc. (FORR) is navigating a choppy market, with full-year 2025 revenue guided to decline to a range of approximately $395.0 million to $405.0 million, and contract value (CV) dropping 7% to $288.1 million as of Q3 2025. But if you're a financially-literate decision-maker, you know the real story isn't just the top-line miss; it's the smart money moving in, betting on the bottom-line efficiency and the AI pivot. Why are institutional investors, who collectively own about 46% of the company, still active-with firms like Federated Hermes Inc. boosting their stake in Q3 2025-while the stock trades near its 52-week low of $6.62? The play is simple: management is controlling costs, delivering Q3 adjusted net income of $7.2 million, and guiding for a full-year 2025 adjusted diluted EPS of $1.15 to $1.25, plus they're aggressively rolling out new products like Forrester AI Access to stabilize the core research business. The question you need to answer is whether the market's current bearish sentiment, which has driven the price down from a 52-week high of $17.65, is creating a defintely compelling value opportunity, or if the revenue headwinds are too strong for even the AI strategy to overcome.

Who Invests in Forrester Research, Inc. (FORR) and Why?

If you are looking at Forrester Research, Inc. (FORR), you are seeing a company with a unique ownership structure, which tells you a lot about the investment thesis right now. The short answer is: institutions are the largest external owners, but the founder's stake is the real anchor, and their motivation is a long-term bet on the company's strategic pivot to an AI-driven, subscription-based model.

The company's full-year 2025 GAAP revenue guidance of approximately $400.0 million to $410.0 million reflects a challenging market, but the investor base is largely focused on the adjusted figures and the strategic transformation underway. You need to understand who holds the shares to grasp the stock's volatility.

Key Investor Types: The Insider Anchor and Institutional Majority

Forrester Research, Inc.'s ownership profile is defintely not typical for a publicly traded company. The largest single shareholder is an insider: CEO George Colony holds a massive stake, sitting at about 39% of the shares outstanding. This level of commitment means management's interests are deeply aligned with long-term shareholder value, but it also reduces the public float and can amplify stock price movements.

The institutional investors, often called the smart money, collectively hold the majority of the remaining shares, controlling roughly 46% of the company. This group includes heavyweights like Blackrock, Inc., which held 952,825 shares as of the third quarter of 2025, and The Vanguard Group, Inc., with 649,765 shares. Retail investors, or the general public, hold a smaller but still significant portion, around 14%. What's interesting is that hedge funds, the short-term traders, do not have a meaningful investment.

• Insiders: 39% ownership, signaling long-term alignment.
• Institutions: 46% ownership, driving major trading decisions.
• Retail: 14% ownership, providing some market liquidity.

Investment Motivations: Betting on AI and Predictable Revenue

Investors are attracted to Forrester Research, Inc. for two main reasons: the shift to a highly predictable revenue stream and the company's positioning as an Artificial Intelligence (AI) research leader. The company is focused on building long-term growth through predictable contract-value (CV) revenue streams. The transition to the Forrester Decisions platform, which now accounts for about 80% of the total contract value, is central to this thesis.

The second motivation is the company's focus on AI. They are actively branding themselves as the leading AI research company, using tools like their generative AI tool, Izola, to serve clients. This is a growth story, even if the near-term financials are soft. For the full year 2025, the adjusted operating margin is still projected to be a healthy 8.0% to 9.0%, which suggests solid underlying profitability despite revenue headwinds. Here's the quick math: the focus is on growing the contract value (CV) per client, which was $158,000 at the end of 2024, up from $143,000 in 2023. You can learn more about the company's long-term vision in their Mission Statement, Vision, & Core Values of Forrester Research, Inc. (FORR).

Investment Strategies: Long-Term Value and Capital Management

The dominant strategy among institutional holders is a long-term holding approach, which is typical for a company with a high insider stake and a multi-year strategic transformation. They are essentially value investors who see the current stock price as undervalued relative to the future potential of the Forrester Decisions platform and the AI research leadership. This is not a short-term trading stock for most large funds.

Forrester Research, Inc.'s management is reinforcing this long-term strategy through capital management. The company plans on reinstating its stock repurchase program in the second half of 2025. This action signals to investors that management believes the stock is cheap and is a direct way to return capital and boost earnings per share (EPS). The adjusted diluted EPS guidance for 2025 is between $1.20 and $1.35, and a buyback helps support that number. The core investment strategy is a patient, value-oriented one, waiting for the macroeconomic uncertainty to clear and for the full benefits of the platform transition to show up in the revenue numbers.

Institutional Ownership and Major Shareholders of Forrester Research, Inc. (FORR)

If you're looking at Forrester Research, Inc. (FORR), the first thing to understand is that institutional investors-the big players like mutual funds and asset managers-hold a significant and growing stake. As of the third quarter of 2025, institutions controlled approximately 48.11% of the company's shares, a position that gives them considerable influence over the stock's near-term price action and, by extension, management's focus. This is a classic small-cap scenario where a few large funds can really move the needle.

The top four shareholders alone control about 50% of the company, and while CEO George F. Colony is the largest individual owner with a 38.85% stake, the collective power of the institutional 'smart money' is what you need to track. They are the ones most impacted by the recent stock volatility, which saw the market capitalization fall to $169 million after an 11% drop in late October 2025. This dynamic means management is defintely feeling the pressure to deliver on their strategic initiatives.

Top Institutional Investors and Their FORR Holdings

The institutional ownership landscape for Forrester Research, Inc. is dominated by a mix of passive index funds and active small-cap managers. These firms are buying for different reasons: the index funds like Vanguard Group Inc. are often buying because FORR is a component of a benchmark index, while the active managers see a specific value opportunity.

Here's a quick look at the largest institutional holders based on their Q3 2025 13F filings, which is the most recent data we have:

Notice BlackRock, Inc. is the largest institutional holder with 952,825 shares. To be fair, for a firm that manages trillions, this is a tiny position, but it's a major position for FORR. Also, you can see the clear divergence in strategy: some funds are accumulating, and others are selling down.

Recent Shifts in Institutional Ownership: Accumulation vs. Selling

The trend in the third quarter of 2025 was a slight net accumulation by institutional investors. Overall, institutional investors increased their total holdings from 47.51% to 47.88% of the shares outstanding in September 2025. This small increase suggests that while some funds are exiting, others are stepping in, likely viewing the stock's decline as a buying opportunity.

• BlackRock, Inc. added 100,861 shares, a significant vote of confidence.
• Dimensional Fund Advisors Lp, a value-focused firm, reduced its stake by 45,162 shares.
• Smaller active managers like Pacific Ridge Capital Partners, LLC, also increased their position by 20,888 shares.

Here's the quick math: the total institutional shares held is around 12.49 million. A net increase in ownership percentage, despite a tough market for the stock, indicates a belief among a subset of professional investors that the company's turnaround or value proposition is intact. Check out the company's core business model and history here: Forrester Research, Inc. (FORR): History, Ownership, Mission, How It Works & Makes Money.

The Impact of Large Investors on FORR's Strategy

Institutional investors are not just passive holders; they are a critical check on management, especially in a period of financial stress. Forrester Research, Inc. is guiding for a challenging full-year 2025, with total revenues expected to be approximately $400.0 million to $410.0 million, representing a decline of 5.2% to 7.5% versus the prior year.

The large institutional stake-nearly half the company-means these investors are demanding a clear path to profitability and growth. Their influence is most keenly felt in two areas:

• Capital Allocation: They pressure management to be highly disciplined with cash, focusing on high-return projects and efficiency.
• Strategic Focus: They reward clear, actionable strategies, like the company's focus on its generative AI tool, Izola, which CEO George F. Colony highlighted as a key priority for delivering research insights.

The recent 11% stock price drop following the Q3 2025 results, which showed contract value down 7% year-over-year at $288.1 million, will amplify this pressure. Institutional investors, often referred to as 'smart money,' are the group most impacted by the downturn, and if the decline continues, they may be pressured to sell, creating further downward momentum. Your action here is to monitor the next 13F filings closely; sustained selling by the largest holders would signal a loss of confidence in the turnaround plan.

Key Investors and Their Impact on Forrester Research, Inc. (FORR)

You need to know who's in the driver's seat at Forrester Research, Inc. (FORR) because their decisions directly map to your investment risk and opportunity. The short answer is that the company is controlled by a tight group of institutional players and its founder, which means any major strategic shift is defintely a high-conviction move, not a consensus one.

The single most influential person is CEO and Chairman George Colony, who holds a massive 39% stake in the business. This level of insider ownership is a double-edged sword: it shows deep commitment but also means institutional investors have less power to force a change in management or strategy. This is not a typical activist target, but a founder-led company with strong internal control.

The Institutional Heavy Hitters and Their Recent Moves

Despite the founder's large stake, institutional investors collectively own a significant portion, ranging from 46% to 55.20% of the company's stock. These are the big funds that move markets, and their presence lends credibility, even as the company navigates a challenging environment. The top institutional owners include giants like Royce & Associates Lp, BlackRock, Inc., and Vanguard Group Inc.

What's interesting is the recent accumulation in the third quarter of 2025. While the stock price was around $7.58 / share as of early November 2025, some funds were buying aggressively. For example, Assenagon Asset Management S.A. bought an additional 68,121 shares, bringing their total position to 79,140 shares. Plus, GAMMA Investing LLC increased its stake by a staggering 2,589.5%. Here's the quick math on the accumulation: these investors see the current low valuation as a buying opportunity, betting on the long-term success of the company's strategic pivot.

• Royce & Associates Lp: One of the largest institutional holders.
• BlackRock, Inc. and Vanguard Group Inc: Passive index funds that provide a stable, long-term base.
• Federated Hermes Inc.: Boosted its stake to 255,364 shares in Q3 2025.

Investor Influence and the Near-Term Financial Picture

The concentration of ownership-where the top four shareholders control roughly 50% of the company-means their collective trading decisions have an outsized impact on the stock. If a few major institutions decide to sell a large block, the stock price, which has been under pressure, could be vulnerable to a sharp drop. This is a crucial risk for individual investors to monitor.

The buying activity in Q3 2025 suggests these investors are keying off the company's strategic transformation and the potential for a rebound, despite the challenging 2025 financial guidance. For the full fiscal year 2025, Forrester Research, Inc. (FORR) is guiding for total revenues of approximately $395.0 million to $405.0 million, a decline from the prior year. The adjusted earnings per share (EPS) guidance is also tight, projected between $1.20 and $1.35. What this estimate hides is the market's focus on the firm's Contract Value (CV) metric, which was down 7% in Q3 2025, but management is optimistic about their new AI-driven offerings like Izola.

To fully understand the financial health that these major investors are betting on, you should review the core metrics in Breaking Down Forrester Research, Inc. (FORR) Financial Health: Key Insights for Investors.

The institutional accumulation is a vote of confidence that Forrester Research, Inc. (FORR) can execute its turnaround plan, but the weak revenue guidance shows the path is still rocky. Your next step should be to look for the Q4 2025 institutional filing deadlines to see if the accumulation trend is accelerating or slowing down.

Market Impact and Investor Sentiment

You are looking at a classic deep-value scenario with Forrester Research, Inc. (FORR), where market sentiment is defintely bearish, but the underlying institutional and insider positioning suggests a different, long-term conviction. The stock has been under significant pressure, dropping about 45% over the last year, with a recent 11% plunge adding to the investor pain as of late October 2025.

The core of the negative sentiment stems from top-line pressures. Management modestly lowered its full-year 2025 revenue guidance to a range of approximately $395.0 million to $405.0 million, citing ongoing headwinds in the Consulting and Events businesses. This decline is a clear signal to the market that a turnaround is taking longer than expected, despite the company's efforts to pivot into AI leadership with tools like Izola. Still, the company's strong balance sheet-with approximately $134 million in cash versus only $35 million in financial debt as of May 2025-is a major stabilizing factor that the market seems to be ignoring.

• Stock trades at a 0.3x price-to-sales ratio.
• Insiders own a substantial 42.36% stake.
• CEO George F. Colony holds 38.85% of shares.

Recent Market Reactions to Ownership Dynamics

The market's reaction to news has been one of skepticism, even when the numbers beat expectations. For example, following the Q3 2025 earnings report on October 30, 2025, Forrester Research, Inc. reported adjusted earnings per share (EPS) of $0.37, which topped the consensus estimate of $0.31. But the stock still saw a significant drop because the guidance cut and the overall revenue decline of 8% year-over-year overshadowed the EPS beat.

This volatility is amplified by the ownership structure. Institutions hold a large stake, about 48.11% of the company, and with the stock's market capitalization recently falling to about $169 million, their trading decisions wield significant influence. The concentration of ownership is high, with the top four shareholders controlling roughly 50% of the shares outstanding. Any hint of institutional selling can create a sharp price movement, which is why the stock price of $7.58 as of early November 2025 is near its 52-week low.

Analyst Perspectives and Key Investor Influence

When you look past the daily noise, the analyst community is split, reflecting the push-pull between poor near-term performance and the deep-value proposition. Zacks Research downgraded Forrester Research, Inc. to a 'strong sell' in October 2025, but at the same time, the analyst consensus suggests a DCF (Discounted Cash Flow) fair value estimate of $14.55 and a price target of $12.00. That's a huge potential upside from the current price, but it hinges on a successful execution of the AI strategy.

Key institutional investors, including BlackRock, Inc. and Vanguard Group Inc, remain major holders. BlackRock, Inc. held 952,825 shares as of September 30, 2025, and institutional investors collectively increased their holdings from 47.51% to 47.88% in September 2025. This accumulation suggests that the smart money sees the current valuation-a 0.3x price-to-sales ratio-as a compelling entry point, believing the company will stabilize its Contract Value (CV) of $288.1 million and capitalize on its new AI offerings.

Here's a quick look at the top institutional holders as of Q3 2025:

The biggest risk here is the insider selling trend over the last 12 months, which signals that while the CEO holds a massive stake, other insiders are taking some money off the table. This is a critical divergence to watch. For a deeper dive into the company's foundation, you can check out Forrester Research, Inc. (FORR): History, Ownership, Mission, How It Works & Makes Money. The next concrete step for you is to monitor the Q4 2025 Contract Value figures; an improvement to a low single-digit decline is what management is anticipating.