Apple (NASDAQ:AAPL) Shares Up 1.1% – Still a Buy?

Apple Inc. (NASDAQ:AAPL) shares rose 1.1% during trading on Wednesday . The company traded as high as $302.80 and last traded at $302.25. Approximately 37,304,507 shares changed hands during trading, a decline of 21% from the average daily volume of 47,015,500 shares. The stock had previously closed at $298.97.

Key Apple News

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

A number of equities research analysts have recently issued reports on AAPL shares. Wells Fargo & Company reiterated an “overweight” rating and issued a $310.00 target price (up from $300.00) on shares of Apple in a research note on Friday, May 1st. TD Cowen reiterated a “buy” rating and set a $335.00 price objective (up from $325.00) on shares of Apple in a research note on Friday, May 1st. Scotiabank set a $330.00 target price on shares of Apple in a research report on Monday, February 2nd. KGI Securities upgraded shares of Apple to an “outperform” rating and set a $306.00 target price for the company in a research note on Friday, January 30th. Finally, Morgan Stanley reaffirmed an “overweight” rating and set a $330.00 price target (up from $315.00) on shares of Apple in a report on Friday, May 1st. One investment 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 stock. Based on data from MarketBeat, Apple presently has a consensus rating of “Moderate Buy” and a consensus target price of $308.74.

Apple Stock Performance

The company has a market capitalization of $4.54 trillion, a price-to-earnings ratio of 37.34, a price-to-earnings-growth ratio of 2.63 and a beta of 1.06. 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 stock has a 50-day simple moving average of $268.68 and a 200-day simple moving average of $268.34.

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

Apple Increases Dividend

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

Insider Activity at Apple

In other news, SVP Deirdre O’brien sold 30,002 shares of the stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $255.35, for a total transaction of $7,661,010.70. Following the transaction, the senior vice president owned 136,810 shares of the company’s stock, valued at approximately $34,934,433.50. This trade represents a 17.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Timothy D. Cook sold 64,949 shares of the business’s stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $254.23, for a total value of $16,511,984.27. Following the completion of the sale, the chief executive officer directly owned 3,280,418 shares of the company’s stock, valued at approximately $833,980,668.14. This represents a 1.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 97,759 shares of company stock worth $24,964,305. 0.06% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Apple

Several institutional investors and hedge funds have recently made changes to their positions in AAPL. Isthmus Partners LLC boosted its stake in Apple by 6.4% in the third quarter. Isthmus Partners LLC now owns 97,177 shares of the iPhone maker’s stock valued at $25,000 after acquiring an additional 5,808 shares during the period. Sellwood Investment Partners LLC raised its position 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 purchasing an additional 71 shares during the period. Lifetime Wealth Management P.C. bought a new stake in shares of Apple in the 4th quarter worth approximately $41,000. ROSS JOHNSON & Associates LLC boosted its position in Apple by 1,800.0% during the 1st quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker’s stock valued at $42,000 after purchasing an additional 180 shares during the period. Finally, LSV Asset Management acquired a new position in Apple during the 4th quarter valued at approximately $65,000. 67.73% of the stock is 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.