Apple (NASDAQ:AAPL) Downgraded by Phillip Securities to Moderate Sell

Key Points

• Phillip Securities downgraded Apple from “hold” to “moderate sell.” Analyst views remain mixed overall: MarketBeat reports an average “moderate buy” rating and a $343.74 average price target.
• Apple beat quarterly expectations, reporting earnings of $2.10 per share versus $1.99 expected and revenue of $114.48 billion versus $113.40 billion; revenue rose 11.7% year over year.
• Investors face potential near-term headwinds, including management’s warning about rising memory-chip costs and supply constraints that could pressure holiday-quarter margins.

Apple (NASDAQ:AAPL - Get Free Report) was downgraded by stock analysts at Phillip Securities from a "hold" rating to a "moderate sell" rating in a research note issued on Friday, Zacks reports.

Several other brokerages also recently commented on AAPL. HSBC reissued a "buy" rating on shares of Apple in a research note on Tuesday, October 27th. China Renaissance cut Apple from a "buy" rating to a "hold" rating and decreased their target price for the company from $329.00 to $280.00 in a research report on Tuesday, August 4th. DZ Bank cut Apple from a "hold" rating to a "sell" rating and set a $300.00 price target on the stock. in a report on Wednesday. Yorkville Ives assumed coverage on shares of Apple in a research report on Tuesday, October 6th. They set an "outperform" rating and a $400.00 price target on the stock. Finally, CICC Research upped their target price on shares of Apple from $310.00 to $340.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 4th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, thirteen have assigned a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $343.74.

Apple Stock Down 0.5%

Shares of NASDAQ:AAPL opened at $342.37 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 stock has a market capitalization of $5.00 trillion, a P/E ratio of 38.17, a price-to-earnings-growth ratio of 2.82 and a beta of 1.07. Apple has a 12-month low of $243.42 and a 12-month high of $355.38. The stock's 50-day moving average price is $336.01 and its 200-day moving average price is $298.50.

Apple (NASDAQ:AAPL - Get Free Report) last announced its earnings results on Monday, November 2nd. The iPhone maker reported $2.10 earnings per share for the quarter, topping the consensus estimate of $1.99 by $0.11. The firm had revenue of $114.48 billion for the quarter, compared to the consensus estimate of $113.40 billion. Apple had a return on equity of 128.88% and a net margin of 27.60%. The firm's revenue for the quarter was up 11.7% on a year-over-year basis. During the same period in the previous year, the business earned $1.85 EPS. On average, equities analysts anticipate that Apple will post 9.70 earnings per share for the current year.

Insider Activity at Apple

In other Apple news, SVP Deirdre O'brien sold 46,389 shares of the firm's stock in a transaction that occurred 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 of the company's stock, valued at approximately $45,615,190.20. This trade represents a 25.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 Apple stock in a transaction that occurred on 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. This trade represents a 29.90% decrease in their ownership of the stock. 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. Over the last 90 days, insiders have sold 291,651 shares of company stock worth $97,082,537. 0.06% of the stock is owned by company insiders.

Hedge Funds Weigh In On Apple

Several large investors have recently modified their holdings of AAPL. Prospect Hill Management LLC bought a new position in shares of Apple in the second quarter valued at approximately $146,370,000. Focus Partners Advisor Solutions LLC bought a new stake in shares of Apple during the second quarter worth $168,646,000. Wealthfront Advisers LLC bought a new stake in Apple during the 2nd quarter valued at $482,388,000. Satovsky Asset Management LLC bought a new stake in shares of Apple during the second quarter valued at about $16,064,000. Finally, Gouws Capital LLC grew its stake in shares of Apple by 136.9% in the third quarter. Gouws Capital LLC now owns 37,504 shares of the iPhone maker's stock worth $12,490,000 after purchasing an additional 21,676 shares during the last quarter. Institutional investors own 67.73% of the company's stock.

Trending Headlines about Apple

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple beat fiscal fourth-quarter earnings and revenue estimates, with solid iPhone and Mac demand. Apple also says more apps optimized for its new foldable iPhone are coming, potentially improving the product’s appeal. Apple earnings beat
• Positive Sentiment: Apple has held up better than many chipmakers amid the AI-stock sell-off, and Bernstein raised its price target to $380 while maintaining a Buy rating. This relative strength may support investor sentiment. Apple holds up amid market weakness
• Neutral Sentiment: Apple is reportedly seeking about $7.5 billion through a bond offering. The financing provides flexibility, though the reports do not specify its use. The company is also limiting some employees’ AI-tool budgets, a move that could help control costs but raises questions about its internal AI investment. Apple bond sale report
• Negative Sentiment: Management warned of unprecedented memory-chip costs and supply constraints heading into the holiday quarter, putting gross margins at risk despite healthy demand. Investors are also weighing slower Services growth and Apple’s premium valuation. Memory costs and supply constraints

Apple Company Profile

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.

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