TD Cowen Has Lowered Expectations for Apple (NASDAQ:AAPL) Stock Price

Key Points

• TD Cowen lowered Apple’s price target from $400 to $390 while maintaining a “buy” rating, implying about 15.28% upside from the reported share price.
• Apple exceeded quarterly expectations, reporting $2.10 in EPS and $114.48 billion in revenue, with revenue up 11.7% year over year. Its outlook for the next quarter also surpassed analyst consensus.
• Apple shares were reported down 1.8%, amid concerns about elevated valuation, rising memory costs, slower services growth and weaker China and iPad performance, although analysts’ consensus rating remained “Moderate Buy.”

Apple (NASDAQ:AAPL - Get Free Report) had its price target reduced by equities researchers at TD Cowen from $400.00 to $390.00 in a research note issued on Tuesday, Benzinga reports. The brokerage presently has a "buy" rating on the iPhone maker's stock. TD Cowen's target price suggests a potential upside of 15.28% from the stock's current price.

Several other analysts have also recently issued reports on AAPL. Citic Securities upped their price objective on shares of Apple from $300.00 to $349.00 in a research note on Thursday, August 6th. Oppenheimer reissued a "market perform" rating on shares of Apple in a research note on Thursday, September 10th. JPMorgan Chase & Co. boosted their target price on Apple from $340.00 to $360.00 and gave the stock an "overweight" rating in a report on Monday, October 12th. Seaport Research Partners lowered Apple from a "buy" rating to a "neutral" rating in a research report on Monday, August 17th. Finally, Piper Sandler began coverage on Apple in a research report on Monday, August 17th. They issued an "overweight" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $342.76.

Apple Trading Down 1.8%

Shares of AAPL opened at $338.32 on Tuesday. Apple has a 52-week low of $243.42 and a 52-week high of $351.73. The stock has a market cap of $4.94 trillion, a PE ratio of 38.80, a price-to-earnings-growth ratio of 2.72 and a beta of 1.07. The firm's fifty day moving average is $333.62 and its two-hundred day moving average is $296.77. The company has a quick ratio of 0.93, a current ratio of 1.00 and a debt-to-equity ratio of 0.66.

Apple (NASDAQ:AAPL - Get Free Report) last issued its earnings results on Monday, November 2nd. The iPhone maker reported $2.10 EPS for the quarter, beating analysts' consensus estimates of $1.99 by $0.11. The business had revenue of $114.48 billion during the quarter, compared to analysts' expectations of $113.40 billion. Apple had a net margin of 27.62% and a return on equity of 135.46%. The company's quarterly revenue was up 11.7% compared to the same quarter last year. During the same period in the prior year, the business earned $1.85 earnings per share. Research analysts forecast that Apple will post 8.75 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Ben Borders sold 1,280 shares of the firm's 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 sale, the insider directly owned 38,288 shares of the company's stock, valued at approximately $13,224,675.20. This trade represents a 3.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Jennifer Newstead sold 2,399 shares of the business's stock in a transaction dated Tuesday, October 27th. The shares were sold at an average price of $343.36, for a total transaction of $823,720.64. Following the completion of the sale, the senior vice president owned 32,396 shares in the company, valued at approximately $11,123,490.56. This trade represents a 6.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 289,252 shares of company stock valued at $96,301,063. 0.06% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Apple

A number of institutional investors and hedge funds have recently made changes to their positions in AAPL. Prospect Hill Management LLC acquired a new stake in Apple in the 2nd quarter valued at about $146,370,000. Focus Partners Advisor Solutions LLC acquired a new position in shares of Apple during the second quarter worth about $168,646,000. Wealthfront Advisers LLC purchased a new stake in shares of Apple during the second quarter worth approximately $482,388,000. Satovsky Asset Management LLC purchased a new stake in shares of Apple during the second quarter worth approximately $16,064,000. Finally, Gouws Capital LLC increased its stake in shares of Apple by 136.9% during the third quarter. Gouws Capital LLC now owns 37,504 shares of the iPhone maker's stock worth $12,490,000 after buying an additional 21,676 shares during the period. 67.73% of the stock is owned by hedge funds and other institutional investors.

Key Apple News

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple beat expectations with fiscal fourth-quarter revenue of $114.48 billion and earnings of $2.10 per share, supported by strong iPhone 18 Pro and Mac demand. Revenue increased 11.7% year over year, while the active installed base reached a record. Apple results beat Wall Street expectations on strong iPhone sales
• Positive Sentiment: Apple’s fiscal first-quarter revenue outlook of $153.8 billion to $158.1 billion exceeded the roughly $152.6 billion analyst consensus, suggesting holiday demand remains solid despite supply constraints. Several analysts maintained Buy ratings, citing resilient iPhone demand and potential AI-driven growth. Apple Buy rating reaffirmed at $370 target
• Neutral Sentiment: Apple declared a quarterly dividend of $0.27 per share, equivalent to a 0.3% yield. The company is also considering paid access to expanded, server-side Siri capabilities, which could eventually create a new services revenue stream but may increase near-term AI infrastructure costs. Apple forecasts slower services growth as AI costs rise
• Negative Sentiment: Management warned that “unprecedented” memory-price increases will pressure gross margins and could constrain Mac and iPad supply through the December quarter. Investors are particularly concerned because Apple’s valuation is elevated, with a reported P/E near 39, leaving little room for disappointing guidance. Apple’s John Ternus faces early test as global memory crisis hurts profits
• Negative Sentiment: Services growth is expected to slow, China revenue and iPad sales underperformed expectations, and part of the quarterly earnings benefit came from a $731 million tariff refund. Analysts remain divided: JPMorgan trimmed its target to $355, while Rosenblatt retained a Neutral rating with a $303 target. What analysts are saying as Apple’s stock falls after earnings

About Apple

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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