Apple (NASDAQ:AAPL) Shares Climb 2.4% – Here’s Why

Apple Inc. (NASDAQ:AAPL) traded up 2.4% on Monday. The company traded as high as $352.33 and last traded at $350.69. 46,944,029 shares traded hands during mid-day trading, a decline of 4% from the average session volume of 48,754,289 shares. The stock had previously closed at $342.37.

Key Apple News

Investors following AAPL have been watching these news items:

• Positive Sentiment: Record quarterly sales, strong iPhone demand and growth in Services provide fundamental support. Investors are also watching the foldable iPhone and a developing Siri AI strategy as potential longer-term growth drivers. Article: Why Apple stock fell despite a record quarter
• Neutral Sentiment: UBS says Apple’s foldable iPhone Duo is in short supply ahead of the holidays. Strong demand is encouraging, but constrained availability could limit near-term sales. Article: Apple’s foldable iPhone Duo is in short supply
• Negative Sentiment: Margin pressure is a key risk: Apple’s December-quarter gross-margin outlook of 45%–46% was reported below analysts’ 46.3% expectation, as executives described memory pricing as unusually high. Article: Apple faces unprecedented memory pricing despite record quarter

Analyst Ratings Changes

Several analysts recently weighed in on AAPL shares. Weiss Ratings upgraded Apple from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Deutsche Bank lowered Apple from a “buy” rating to a “hold” rating in a research report on Monday, August 17th. Loop Capital lowered Apple from a “buy” rating to a “hold” rating and dropped their price target for the stock from $370.00 to $330.00 in a research note on Tuesday, October 20th. Evercore restated an “outperform” rating on shares of Apple in a research note on Tuesday, October 27th. Finally, DA Davidson increased their price objective on Apple from $270.00 to $295.00 and gave the company a “neutral” rating in a research note on Tuesday, November 3rd. Two research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $347.11.

Apple Stock Up 2.0%

The firm has a market capitalization of $5.17 trillion, a PE ratio of 39.65, a PEG ratio of 3.38 and a beta of 1.07. The company has a quick ratio of 0.94, a current ratio of 1.02 and a debt-to-equity ratio of 0.61. The business’s fifty day moving average price is $337.27 and its 200 day moving average price is $299.52.

Apple (NASDAQ:AAPL) last issued its earnings results on Monday, November 2nd. The iPhone maker reported $2.10 EPS for the quarter, topping the consensus estimate of $1.99 by $0.11. The company had revenue of $114.48 billion for the quarter, compared to analyst estimates of $113.40 billion. Apple had a net margin of 27.60% and a return on equity of 125.35%. The business’s revenue was up 11.7% on a year-over-year basis. During the same period in the previous year, the firm earned $1.85 EPS. On average, equities research analysts forecast that Apple Inc. will post 9.44 earnings per share for the current fiscal year.

Apple Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Thursday, November 12th will be given a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date of this dividend is Thursday, November 12th. Apple’s dividend payout ratio is presently 12.04%.

Insider Activity

In other news, SVP Jennifer Newstead sold 2,399 shares of the firm’s stock in a transaction on Tuesday, November 3rd. The shares were sold at an average price of $325.75, for a total transaction of $781,474.25. Following the transaction, the senior vice president owned 29,997 shares in the company, valued at approximately $9,771,522.75. This trade represents a 7.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Deirdre O’brien sold 46,389 shares of the business’s stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $333.42, for a total transaction of $15,467,020.38. Following the transaction, the senior vice president owned 136,810 shares in the company, valued at approximately $45,615,190.20. The trade was a 25.32% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 290,212 shares of company stock valued at $96,639,685 over the last quarter. Corporate insiders own 0.06% of the company’s stock.

Institutional Trading of Apple

Several hedge funds and other institutional investors have recently modified their holdings of AAPL. Patron Partners LLC boosted its holdings in shares of Apple by 2.6% during the 3rd quarter. Patron Partners LLC now owns 38,128 shares of the iPhone maker’s stock worth $12,697,000 after buying an additional 975 shares during the period. Red Oak Financial Group LLC lifted its holdings in Apple by 4.1% during the 3rd quarter. Red Oak Financial Group LLC now owns 6,317 shares of the iPhone maker’s stock worth $2,104,000 after purchasing an additional 250 shares during the last quarter. Advisors Asset Management Inc. bought a new stake in Apple in the 3rd quarter valued at $104,147,000. Hamilton Capital Partners LLC boosted its stake in Apple by 3.3% in the 3rd quarter. Hamilton Capital Partners LLC now owns 2,884 shares of the iPhone maker’s stock valued at $960,000 after purchasing an additional 91 shares during the period. Finally, NFC Investments LLC grew its holdings in Apple by 20.8% in the 3rd quarter. NFC Investments LLC now owns 1,740 shares of the iPhone maker’s stock valued at $580,000 after buying an additional 300 shares in the last quarter. Institutional investors and hedge funds own 67.73% of the company’s stock.

About Apple

Apple Inc. designs, manufactures and markets consumer electronics, software and digital services. Its products include the iPhone, Mac computers, iPad, Apple Watch and AirPods, along with operating systems and applications such as iOS, macOS and iPadOS. The company also offers services including the App Store, Apple Music, Apple TV+, iCloud and Apple Pay. These products and services are integrated across Apple’s devices and are sold to consumers, businesses and institutions around the world. Founded in 1976 and headquartered in Cupertino, California, Apple serves customers globally through online and retail stores, wireless carriers and other resellers.