Apple (NASDAQ:AAPL) Now Covered by Analysts at Melius Research

Key Points

• Melius Research initiated coverage of Apple with a “strong-buy” rating. Across analysts, the stock has a “Moderate Buy” consensus and an average price target of $343.51.
• Apple beat quarterly estimates, reporting EPS of $2.10 versus $1.99 expected and revenue of $114.48 billion, up 11.7% year over year.
• Despite strong results, investors face potential margin pressure: Apple forecast a 45%–46% holiday-quarter gross margin, citing rising memory costs and AI-related expenses.

Analysts at Melius Research initiated coverage on shares of Apple (NASDAQ:AAPL - Get Free Report) in a research report issued on Tuesday, Zacks reports. The firm set a "strong-buy" rating on the iPhone maker's stock.

Other equities analysts have also recently issued research reports about the company. Rosenblatt Securities restated a "neutral" rating and issued a $303.00 price objective on shares of Apple in a report on Tuesday. Bank of America reiterated a "buy" rating and set a $370.00 target price on shares of Apple in a report on Wednesday, September 23rd. Maxim Group increased their price target on Apple from $350.00 to $380.00 and gave the company a "buy" rating in a research report on Friday, July 31st. HSBC restated a "buy" rating on shares of Apple in a research note on Tuesday, October 27th. Finally, Yorkville Ives initiated coverage on Apple in a research report on Tuesday, October 6th. They set an "outperform" rating and a $400.00 price target on the stock. Two analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, fourteen have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $343.51.

Apple Stock Performance

Shares of AAPL opened at $331.90 on Tuesday. Apple has a 12 month low of $243.42 and a 12 month high of $351.73. The firm has a fifty day simple moving average of $334.05 and a 200 day simple moving average of $297.13. The stock has a market capitalization of $4.84 trillion, a price-to-earnings ratio of 37.00, a PEG ratio of 2.82 and a beta of 1.07. The company has a current ratio of 1.00, a quick ratio of 0.93 and a debt-to-equity ratio of 0.66.

Apple (NASDAQ:AAPL - Get Free Report) last released its earnings results on Monday, November 2nd. The iPhone maker reported $2.10 earnings per share for the quarter, beating analysts' consensus estimates of $1.99 by $0.11. Apple had a net margin of 27.60% and a return on equity of 128.88%. The business had revenue of $114.48 billion during the quarter, compared to the consensus estimate of $113.40 billion. During the same quarter last year, the firm earned $1.85 earnings per share. The firm's revenue for the quarter was up 11.7% compared to the same quarter last year. Research analysts forecast that Apple will post 9.56 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Ben Borders sold 1,280 shares of Apple stock in a transaction dated Friday, October 16th. The stock was sold at an average price of $345.40, for a total transaction of $442,112.00. Following the completion of the transaction, the insider owned 38,288 shares in the company, valued at approximately $13,224,675.20. This trade represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Deirdre O'brien sold 46,389 shares of Apple stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $333.42, for a total value of $15,467,020.38. Following the transaction, the senior vice president owned 136,810 shares of the company's stock, valued at $45,615,190.20. The trade was a 25.32% decrease in their position. 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. Insiders sold 289,252 shares of company stock worth $96,301,063 in the last 90 days. 0.06% of the stock is owned by corporate insiders.

Institutional Trading of Apple

A number of hedge funds have recently made changes to their positions in AAPL. Avenir Tech Ltd purchased a new position in Apple in the second quarter valued at approximately $29,000. Ironwood Wealth Management Inc. acquired a new position in Apple during the third quarter valued at approximately $34,000. Longfellow Investment Management Co. LLC purchased a new stake in Apple during the second quarter worth approximately $30,000. ABS Investment Management LLC purchased a new stake in Apple during the second quarter worth approximately $376,168,000. Finally, Mizuho Securities Co. Ltd. purchased a new stake in Apple during the third quarter worth approximately $107,000. 67.73% of the stock is owned by institutional investors and hedge funds.

Apple News Roundup

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple beat fiscal Q4 estimates, reporting revenue of $114.5 billion, up 12% year over year, and EPS of $2.10. Strong iPhone sales helped drive the result, and the active installed base reached a record 2.5 billion devices. Read More.
• Positive Sentiment: The company forecast Q1 fiscal 2027 revenue above analyst consensus, while its holiday sales outlook points to continued demand. Apple has also begun a delayed trial rollout of its AI tools in China, potentially closing a gap with local competitors. Read More.
• Neutral Sentiment: Analyst views are mixed: Bank of America sees a longer-term buying opportunity, while other commentary highlights Apple’s rich valuation and the risk that slowing growth leaves little room for execution setbacks. Read More.
• Negative Sentiment: The key concern is Apple’s forecast for a 45%–46% gross margin in the holiday quarter, below the September quarter’s reported 47.9%. CEO John Ternus said memory prices are rising sharply; higher component costs and Siri AI expenses could erode profits even if sales remain strong. Read More.
• Negative Sentiment: Investors also have concerns about slower Services growth and weaker-than-expected results in China. Because Apple trades at a premium valuation, margin pressure and signs of decelerating growth may weigh more heavily on sentiment. Read More.

Apple Company Profile

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.

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