Yes, too much institutional ownership is not viewed positively as the only place it has to go is down--in other words, the current price already reflects the large amounts of money that have come in, and if/when they want to exit, it hits the stock hard.
Ideally you want to find stocks that have low institutional ownership for technical reasons (priced too low, losing money) but are moving out of those criterion (moving over $5, beginning to show a profit, etc.).