Apple (NASDAQ:AAPL) Shares Up 0.2% - What's Next?

On Wednesday, the share price of Apple Inc. (NASDAQ:AAPL) increased by 0.2%. The stock reached a high of $235.69 and was last traded at $235.42. During mid-day trading, 8,361,816 shares changed hands, reflecting a significant drop of 86% from the average trading volume of 58,104,707 shares. Previously, the stock closed at $235.06.

Analysts Set New Price Targets

Several analysts have recently provided new evaluations for AAPL. In a report dated September 10th, JPMorgan Chase & Co. reiterated their "overweight" rating and established a price target of $265.00 for Apple stocks. Tigress Financial raised their price target from $245.00 to $295.00 and assigned a "strong buy" rating in their report on August 28th. Meanwhile, Goldman Sachs increased their target price from $265.00 to $275.00, maintaining a "buy" rating as of August 2nd. Additionally, Maxim Group raised their target from $203.00 to $215.00 while holding a "hold" rating in a report dated November 1st. Melius Research reaffirmed a "buy" rating with a target price of $265.00 on August 27th. Currently, two analysts have rated the stock as a sell, twelve as hold, twenty-two as buy, and one as strong buy, according to data from MarketBeat. This yields an average rating of "Moderate Buy" with a consensus target price of $235.25.

Apple Price Performance

The 50-day moving average price for Apple stock sits at $228.43, while the 200-day moving average is at $219.01. Apple boasts a market capitalization of $3.55 trillion and has a price-to-earnings (P/E) ratio of 38.72, with a P/E/G ratio of 2.28. The company's beta stands at 1.24, coupled with a debt-to-equity ratio of 1.51. Furthermore, Apple has a current ratio of 0.87 and a quick ratio of 0.83.

On October 31st, Apple released its quarterly earnings report, revealing an EPS of $1.64, which surpassed the consensus estimate of $1.60 by $0.04. The company's revenue for the quarter was $94.93 billion, exceeding analyst expectations of $94.52 billion. Apple recorded a net margin of 23.97% and a remarkable return on equity of 152.94%. Notably, its revenue for the quarter showed a year-over-year increase of 6.1%, compared to $1.46 EPS during the same quarter last year. Analysts predict that Apple Inc. will achieve earnings of 7.43 per share in the current fiscal year.

Apple Dividend Announcement

In recent news regarding dividends, Apple declared a quarterly dividend of $0.25, which was paid on November 14th to investors of record as of November 11th. The ex-dividend date was set for November 8th. This annualizes to a $1.00 dividend with a yield of 0.43%. Currently, Apple's dividend payout ratio (DPR) is 16.45%.

Insider Activity at Apple

In other developments, CEO Timothy D. Cook sold 223,986 shares of Apple stock on October 2nd for an average price of $224.46, bringing the total transaction value to approximately $50.28 million. After this sale, Cook's remaining ownership of the company shares totals 3,280,180, valued at around $736.27 million, marking a 6.39% reduction in his holdings. This transaction was officially disclosed through a filing with the Securities and Exchange Commission. Additionally, SVP Katherine L. Adams sold 61,019 shares on the same day for an average price of $226.20, amounting to roughly $13.80 million, which reduced her stake by 24.60%. Over the last quarter, insiders sold 408,170 shares valued at $92 million, with total insider ownership at just 0.06%.

Institutional Inflows and Outflows

Recent changes in institutional holdings have been notable. Granite Investment Partners LLC increased its position in Apple shares by 2.7% during Q2, acquiring 7,606 additional shares for a total of 289,421 shares valued at around $60.96 million. Truist Financial Corp boosted its stake by 1.8%, now holding 6,994,703 shares valued at approximately $1.47 billion after an increase of 126,210 shares. EP Wealth Advisors LLC raised its stake by 5.2%, bringing its total to 1,928,110 shares valued at about $406.1 million following the purchase of 95,235 shares. In the third quarter, GAMMA Investing LLC raised its stake by 34.9%, owning 200,214 shares worth about $46.65 million after acquiring 51,842 shares. Lastly, Bellwether Advisors LLC increased its stake by 387.3%, now holding 24,349 shares valued at $5.13 million after an additional acquisition of 19,352 shares. Institutional investors collectively own 60.41% of the company’s stock.

Apple Company Profile

Apple Inc. engages in the design, manufacture, and marketing of smartphones, personal computers, tablets, wearables, and accessories globally. The company is well-known for its iPhone, a line of smartphones, Mac computers, iPad tablets, and a range of wearables and accessories that include AirPods, Apple TV, Apple Watch, Beats products, and HomePod.

Should you invest $1,000 in Apple right now?

Before making a decision to invest in Apple, it may be beneficial to conduct thorough research. Analysts on Wall Street continuously assess the market and the performance of various stocks. Currently, while Apple holds a "Moderate Buy" rating, several top-rated analysts believe that other stocks may offer better investment opportunities at this time.

With significant gains of 150% since the beginning of 2023, it may be worthwhile to consider these alternative stocks to enhance your investment portfolio heading into 2024.

Apple, Stocks, Earnings