Apple (NASDAQ:AAPL) Trading Up 1.3% – What’s Next?

Shares of Apple Inc. (NASDAQ:AAPL) rose 1.3% during mid-day trading on Friday . The company traded as high as $311.40 and last traded at $308.82. Approximately 43,515,711 shares were traded during mid-day trading, a decline of 7% from the average daily volume of 46,947,859 shares. The stock had previously closed at $304.99.

Apple News Summary

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple continues to be viewed as one of the best long-term large-cap tech names, with reports highlighting strong iPhone demand, its massive installed base, and the potential for Services to drive the next leg of earnings growth. Apple Services story
• Positive Sentiment: Analysts remain constructive: Evercore ISI reiterated an Outperform rating and raised its price target, while other commentary says Apple can keep compounding earnings and free cash flow as it expands AI features and devices. Analyst commentary
• Positive Sentiment: Apple executives saying the company is still in the “early innings” of spatial computing is reinforcing the view that new product categories could support future growth beyond the iPhone. Spatial computing article
• Neutral Sentiment: Apple’s legal fight with Epic Games remains a drag on sentiment, as the company asked the U.S. Supreme Court to review a contempt order tied to App Store fees. Epic lawsuit article
• Negative Sentiment: Some analysts are becoming more cautious on valuation after Apple’s run to new highs, warning the stock may be due for profit-taking. KeyBanc caution article

Wall Street Analyst Weigh In

Several brokerages recently weighed in on AAPL. Citigroup reiterated a “buy” rating on shares of Apple in a research report on Tuesday, April 21st. Morgan Stanley reiterated an “overweight” rating and issued a $330.00 price objective (up from $315.00) on shares of Apple in a research note on Friday, May 1st. DA Davidson restated a “neutral” rating and issued a $270.00 price target on shares of Apple in a research note on Friday, May 1st. Rosenblatt Securities raised their price target on Apple from $268.00 to $276.00 and gave the company a “neutral” rating in a research note on Friday, May 1st. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Apple in a report on Wednesday, March 4th. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $308.74.

Apple Price Performance

The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.02 and a current ratio of 1.07. The company has a 50-day simple moving average of $268.68 and a 200-day simple moving average of $268.34. The company has a market cap of $4.54 trillion, a price-to-earnings ratio of 37.34, a PEG ratio of 2.63 and a beta of 1.06.

Apple (NASDAQ:AAPL) last released its earnings results on Thursday, April 30th. The iPhone maker reported $2.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.95 by $0.06. The company had revenue of $111.18 billion for the quarter, compared to analysts’ expectations of $109.46 billion. Apple had a return on equity of 146.69% and a net margin of 27.15%.The firm’s quarterly revenue was up 16.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.65 EPS. As a group, research analysts predict that Apple Inc. will post 8.74 earnings per share for the current year.

Apple Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 14th. Stockholders of record on Monday, May 11th were paid a dividend of $0.27 per share. This is a positive change from Apple’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend was Monday, May 11th. This represents a $1.08 annualized dividend and a dividend yield of 0.3%. Apple’s dividend payout ratio is presently 13.06%.

Insider Transactions at Apple

In other news, CEO Timothy D. Cook sold 64,949 shares of the business’s stock in a transaction that occurred on Thursday, April 2nd. The stock was sold at an average price of $254.23, for a total transaction of $16,511,984.27. Following the sale, the chief executive officer owned 3,280,418 shares of the company’s stock, valued at $833,980,668.14. The trade was a 1.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevan Parekh sold 1,534 shares of Apple stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $275.00, for a total value of $421,850.00. Following the transaction, the chief financial officer owned 13,366 shares of the company’s stock, valued at $3,675,650. This represents a 10.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 97,759 shares of company stock worth $24,964,305 over the last quarter. Insiders own 0.06% of the company’s stock.

Institutional Trading of Apple

Institutional investors and hedge funds have recently made changes to their positions in the company. Sellwood Investment Partners LLC increased its holdings in shares of Apple by 110.9% during the 3rd quarter. Sellwood Investment Partners LLC now owns 135 shares of the iPhone maker’s stock worth $34,000 after buying an additional 71 shares during the last quarter. Lifetime Wealth Management P.C. purchased a new position in Apple in the 4th quarter valued at about $41,000. ROSS JOHNSON & Associates LLC lifted its position in shares of Apple by 1,800.0% during the first quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker’s stock worth $42,000 after purchasing an additional 180 shares during the last quarter. Timmons Wealth Management LLC bought a new position in shares of Apple during the fourth quarter worth about $69,000. Finally, LSV Asset Management bought a new position in shares of Apple during the fourth quarter worth about $65,000. 67.73% of the stock is currently owned by institutional investors and hedge funds.

Apple Company Profile

Apple Inc (NASDAQ: AAPL) is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple’s principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.