Apple FY2027 Earnings Forecast Increased by Erste Group Bank

Apple Inc. (NASDAQ:AAPL) – Analysts at Erste Group Bank boosted their FY2027 earnings per share (EPS) estimates for shares of Apple in a research report issued to clients and investors on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the iPhone maker will earn $9.58 per share for the year, up from their prior forecast of $9.57. The consensus estimate for Apple’s current full-year earnings is $8.75 per share.

Apple (NASDAQ:AAPL) last released its quarterly earnings data on Thursday, July 30th. The iPhone maker reported $2.02 EPS for the quarter, beating the consensus estimate of $1.89 by $0.13. The company had revenue of $109.42 billion during the quarter, compared to the consensus estimate of $109.04 billion. Apple had a return on equity of 135.46% and a net margin of 27.62%. The firm’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.57 EPS.

Other analysts have also recently issued research reports about the stock. Phillip Securities increased their price target on shares of Apple from $290.00 to $300.00 and gave the company a “neutral” rating in a research note on Monday, September 14th. Piper Sandler assumed coverage on shares of Apple in a research note on Monday, August 17th. They set an “overweight” rating on the stock. UBS Group reaffirmed a “neutral” rating on shares of Apple in a report on Tuesday, October 6th. Rothschild & Co Redburn set a $400.00 target price on shares of Apple and gave the company a “buy” rating in a report on Monday, August 17th. Finally, Loop Capital downgraded shares of Apple from a “buy” rating to a “hold” rating and cut their target price for the company from $370.00 to $330.00 in a research note on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $340.12.

Apple Stock Performance

NASDAQ AAPL opened at $348.22 on Friday. The company has a current ratio of 1.00, a quick ratio of 0.93 and a debt-to-equity ratio of 0.66. The firm’s fifty day moving average price is $328.91 and its two-hundred day moving average price is $309.07. Apple has a 1 year low of $243.42 and a 1 year high of $348.36. The firm has a market capitalization of $5.08 trillion, a P/E ratio of 39.93, a price-to-earnings-growth ratio of 2.72 and a beta of 1.07.

Institutional Trading of Apple

Hedge funds and other institutional investors have recently modified their holdings of the stock. Avenir Tech Ltd bought a new stake in Apple in the 2nd quarter valued at $29,000. Ironwood Wealth Management Inc. acquired a new position in Apple in the 3rd quarter valued at $34,000. Longfellow Investment Management Co. LLC acquired a new position in Apple in the 2nd quarter valued at $30,000. ABS Investment Management LLC bought a new position in Apple during the 2nd quarter worth $376,168,000. Finally, Bamco Inc. NY bought a new position in Apple during the 2nd quarter worth $118,000. Institutional investors own 67.73% of the company’s stock.

Insider Buying and Selling at Apple

In other Apple news, SVP Deirdre O’brien sold 46,389 shares of the company’s stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $333.42, for a total value of $15,467,020.38. Following the transaction, the senior vice president directly owned 136,810 shares in the company, valued at $45,615,190.20. The trade was a 25.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO John Ternus sold 25,412 shares of the stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $332.94, for a total transaction of $8,460,671.28. Following the completion of the transaction, the chief executive officer directly owned 59,567 shares in the company, valued at $19,832,236.98. The trade was a 29.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 286,853 shares of company stock worth $95,477,342. 0.06% of the stock is currently owned by corporate insiders.

Apple Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Monday, August 10th were issued a dividend of $0.27 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $1.08 annualized dividend and a yield of 0.3%. Apple’s dividend payout ratio (DPR) is currently 12.39%.

Key Apple News

Here are the key news stories impacting Apple this week:

• Positive Sentiment: iPhone Duo demand is the leading catalyst. Preorders for Apple’s $1,999 foldable reportedly sold out quickly, with some deliveries pushed into 2027. DigiTimes also reported that Apple raised its 12-month shipment target by 44%, to 14 million units from 9.7 million. iPhone Duo preorder surge prompts Apple to raise shipment targets
• Positive Sentiment: The foldable’s launch appears supply constrained. Apple said stores will have limited walk-in inventory, while online orders have already created lengthy backlogs. Strong demand for a premium new product could support revenue, mix and pricing power. Apple bets iPhone Duo can remake foldable market
• Positive Sentiment: Apple is benefiting from its defensive AI positioning. Investors are favoring Apple’s substantial free cash flow and device-focused AI approach over technology companies committing very large sums to data centers. Berkshire Hathaway’s continued major holding also supports the stock’s appeal. Apple’s Cash Flow Machine Makes It Investors’ Favorite AI Hedge
• Positive Sentiment: New product and ecosystem opportunities could extend growth. Apple is expanding smart-home offerings through a Schneider Electric collaboration and is expected to discuss additional products at an October 28 event. Schneider Electric teams up with Apple on smart-home products
• Neutral Sentiment: Apple shares have reached new intraday and closing highs, but valuation raises the bar. With a market capitalization of roughly $5.08 trillion and a price-to-earnings ratio near 40, investors will need strong holiday sales, margins and continued product growth to justify further gains. Apple shares hit new all-time highs
• Negative Sentiment: Valuation concerns and insider selling remain headwinds. Loop Capital downgraded Apple to Hold and lowered its price target to $330, while SVP Jennifer Newstead sold 2,399 shares worth approximately $815,000. The sale is small relative to Apple’s size but may add to investor caution after the stock’s strong run.

About Apple

Apple Inc designs, develops and sells consumer electronics, software and digital services. Its best-known products include the iPhone smartphone, Mac personal computers, iPad tablets, Apple Watch, AirPods and other accessories. The company also develops operating systems and applications that support its hardware ecosystem.

Apple’s services business includes the App Store, Apple Music, Apple TV, Apple Arcade, iCloud, Apple Pay and other subscription, payment and digital-content offerings.