Apple (NASDAQ:AAPL) Stock Price Down 6.5% – What’s Next?

Apple Inc. (NASDAQ:AAPL)’s share price was down 6.5% on Thursday . The company traded as low as $275.45 and last traded at $273.9670. 40,267,511 shares were traded during mid-day trading, a decline of 16% from the average daily volume of 47,959,566 shares. The stock had previously closed at $293.08.

Key Apple News

Here are the key news stories impacting Apple this week:

• Negative Sentiment: Apple raised prices on several MacBook and iPad models by roughly $100 to $300, signaling that component inflation is hitting the product lineup and could pressure demand. Reuters article
• Negative Sentiment: Analysts warned the price increases could create “demand friction” for Macs and iPads if consumers resist the higher prices, which may weigh on near-term unit sales. Seeking Alpha article
• Negative Sentiment: The stock also fell as traders reacted to the broader message that AI-related memory shortages are intensifying cost pressure across Apple’s hardware business, not just in one product line. CNBC article
• Neutral Sentiment: Apple’s latest earnings were strong, with revenue and EPS beating estimates, so the selloff appears tied more to future margin concerns than to weakening current results.
• Neutral Sentiment: Some Wall Street commentary suggests the price increases may help offset higher memory costs, but investors are still waiting to see whether Apple can preserve growth without hurting demand.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Wedbush restated an “outperform” rating and issued a $400.00 price objective on shares of Apple in a report on Friday, June 5th. Stifel Nicolaus set a $330.00 price objective on Apple in a research report on Monday, March 2nd. The Goldman Sachs Group reiterated a “buy” rating on shares of Apple in a report on Monday, March 2nd. Wells Fargo & Company reissued an “overweight” rating and issued a $310.00 price objective (up from $300.00) on shares of Apple in a research report on Friday, May 1st. Finally, Morgan Stanley set a $325.00 price target on Apple in a research report on Tuesday, June 9th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Apple has an average rating of “Moderate Buy” and a consensus target price of $314.85.

Apple Trading Down 4.4%

The business’s 50 day moving average price is $291.83 and its 200-day moving average price is $273.15. The company has a current ratio of 1.07, a quick ratio of 1.02 and a debt-to-equity ratio of 0.70. The company has a market cap of $4.11 trillion, a price-to-earnings ratio of 33.83, a PEG ratio of 2.56 and a beta of 1.09.

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

Apple Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 14th. Shareholders of record on Monday, May 11th were given a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Monday, May 11th. This is a boost from Apple’s previous quarterly dividend of $0.26. Apple’s dividend payout ratio (DPR) is currently 13.06%.

Insider Buying and Selling

In other news, insider Ben Borders sold 1,274 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $290.00, for a total transaction of $369,460.00. Following the sale, the insider directly owned 38,713 shares of the company’s stock, valued at approximately $11,226,770. This represents a 3.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Kevan Parekh sold 1,534 shares of the firm’s stock in a transaction 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 completion of the transaction, the chief financial officer owned 13,366 shares in the company, valued at $3,675,650. The trade was a 10.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 97,875 shares of company stock worth $24,998,541 in the last quarter. Insiders own 0.06% of the company’s stock.

Institutional Investors Weigh In On Apple

Several institutional investors and hedge funds have recently bought and sold shares of AAPL. Evansbrook LLC boosted its position in shares of Apple by 0.4% during the 1st quarter. Evansbrook LLC now owns 8,095 shares of the iPhone maker’s stock worth $2,054,000 after acquiring an additional 34 shares in the last quarter. JMG Financial Group Ltd. raised its position in Apple by 0.7% during the first quarter. JMG Financial Group Ltd. now owns 5,102 shares of the iPhone maker’s stock valued at $1,295,000 after purchasing an additional 35 shares in the last quarter. Reyes Financial Architecture Inc. lifted its stake in Apple by 0.4% during the third quarter. Reyes Financial Architecture Inc. now owns 9,898 shares of the iPhone maker’s stock worth $2,520,000 after purchasing an additional 37 shares during the last quarter. WESPAC Advisors LLC lifted its stake in Apple by 0.3% during the fourth quarter. WESPAC Advisors LLC now owns 12,326 shares of the iPhone maker’s stock worth $3,351,000 after purchasing an additional 39 shares during the last quarter. Finally, Interactive Financial Advisors Inc. boosted its holdings in shares of Apple by 4.0% in the 4th quarter. Interactive Financial Advisors Inc. now owns 1,051 shares of the iPhone maker’s stock valued at $286,000 after purchasing an additional 40 shares in the last quarter. Institutional investors own 67.73% of the company’s stock.

About Apple

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.