Institutional ownership of Apple Inc. was 2.9% at the end of the second quarter, according to Morgan Stanley, which analyst Katy Huberty said is positive for the stock. While that represents the highest allocation level in two years, it is still well below peak ownership of 4.5% in the third quarter of 2012 and below the 3.6% weighting of Apple in the S&P 500. Huberty said that provides an attractive risk-reward scenario for investors ahead of Apple's September product event. Shares of Apple fell 2.3% to $112.28 in recent trade, following a broader market sell-off that had the Dow Jones Industrial Average down more than 200 points in late morning trade. Its shares are down nearly 14% over the last three months, underperforming the Dow 30's 6.2% decline. "We are buyers on weakness," said Huberty. The potential for better-than-expected iPhone sales and gross margin expansion in fiscal-year 2016 can bring Apple shares closer to, or in-line with, last year's historical trading range, she said.
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