Microsoft emerged as the most under-owned megacap stock among institutional investors, signaling a rebound could be on the horizon, according to Morgan Stanley.
Morgan Stanley thinks that stocks tend to experience a technical pull higher when active ownership is much lower than their weightings in the S & P 500, and vice versa.
The gap between Microsoft's S & P 500 weighting and institutional ownership stood at 2.08% by the end of the third quarter, making it the most under-owned Big Tech name, Morgan Stanley said.
After Microsoft, Apple is the second-most under-owned megacap tech stock coming out of the third quarter.
On the flip side, the most over-owned tech stock at the end of September is software company Intuit , which could see a technical downward pull soon, according to Morgan Stanley.
Persons:
Morgan Stanley, Donald Trump
Organizations:
Microsoft, Big Tech, Apple, Intuit, Adobe