Apple (NASDAQ:AAPL) Earns "Outperform" Rating from Wedbush

Key Points

• Wedbush restated its "outperform" rating for Apple (NASDAQ:AAPL) with a target price of $270.00, indicating a potential upside of 28.24% from the stock's previous close.
• Several research firms have updated their ratings on Apple, with price targets ranging from $230.00 to $250.00, reflecting a consensus rating of "Moderate Buy".
• Apple announced a $100 billion share buyback program, signaling confidence from the board that the company's shares are undervalued.

Apple (NASDAQ:AAPL - Get Free Report)'s stock had its "outperform" rating reiterated by Wedbush in a research note issued to investors on Wednesday,Benzinga reports. They presently have a $270.00 target price on the iPhone maker's stock. Wedbush's price target would suggest a potential upside of 29.16% from the company's previous close.

Several other equities analysts also recently weighed in on AAPL. Barclays set a $173.00 target price on Apple and gave the stock an "underweight" rating in a research report on Tuesday, June 24th. Citigroup restated a "buy" rating on shares of Apple in a report on Tuesday, June 10th. TD Cowen cut their price objective on Apple from $290.00 to $275.00 and set a "buy" rating on the stock in a report on Friday, May 2nd. Scotiabank downgraded Apple to a "market perform" rating in a report on Friday, May 2nd. Finally, UBS Group reiterated a "hold" rating on shares of Apple in a research note on Friday, July 18th. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating, fifteen have given a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $234.94.

Apple Price Performance

Shares of AAPL traded down $2.22 during trading hours on Wednesday, reaching $209.05. 43,674,703 shares of the company traded hands, compared to its average volume of 43,746,808. The company has a quick ratio of 0.78, a current ratio of 0.82 and a debt-to-equity ratio of 1.18. The stock has a market capitalization of $3.12 trillion, a PE ratio of 32.56, a price-to-earnings-growth ratio of 2.32 and a beta of 1.20. Apple has a fifty-two week low of $169.21 and a fifty-two week high of $260.10. The stock has a fifty day simple moving average of $205.10 and a 200 day simple moving average of $214.16.

Apple (NASDAQ:AAPL - Get Free Report) last released its earnings results on Thursday, May 1st. The iPhone maker reported $1.65 earnings per share for the quarter, topping the consensus estimate of $1.62 by $0.03. Apple had a return on equity of 167.24% and a net margin of 24.30%. The firm had revenue of $95.36 billion for the quarter, compared to the consensus estimate of $94.04 billion. During the same period in the prior year, the business posted $1.53 earnings per share. The firm's revenue for the quarter was up 5.1% compared to the same quarter last year. As a group, research analysts predict that Apple will post 7.28 EPS for the current fiscal year.

Apple announced that its Board of Directors has authorized a stock repurchase plan on Thursday, May 1st that allows the company to buyback $100.00 billion in outstanding shares. This buyback authorization allows the iPhone maker to buy up to 3.1% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Apple news, insider Chris Kondo sold 4,486 shares of Apple stock in a transaction on Monday, May 12th. The stock was sold at an average price of $208.19, for a total transaction of $933,940.34. Following the sale, the insider owned 15,533 shares of the company's stock, valued at $3,233,815.27. The trade was a 22.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.06% of the stock is owned by insiders.

Institutional Trading of Apple

Several hedge funds have recently added to or reduced their stakes in AAPL. Advanced Portfolio Management LLC increased its position in shares of Apple by 0.3% during the 4th quarter. Advanced Portfolio Management LLC now owns 13,815 shares of the iPhone maker's stock valued at $3,260,000 after purchasing an additional 47 shares during the period. Baker Boyer National Bank increased its position in shares of Apple by 0.3% during the 2nd quarter. Baker Boyer National Bank now owns 18,011 shares of the iPhone maker's stock valued at $3,695,000 after purchasing an additional 47 shares during the period. Family Capital Management Inc. increased its position in shares of Apple by 0.3% during the 4th quarter. Family Capital Management Inc. now owns 16,910 shares of the iPhone maker's stock valued at $4,235,000 after purchasing an additional 48 shares during the period. Farmers & Merchants Trust Co of Chambersburg PA grew its holdings in shares of Apple by 0.3% in the 4th quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 16,682 shares of the iPhone maker's stock worth $4,178,000 after acquiring an additional 48 shares during the last quarter. Finally, Salus Financial Advisors LLC grew its holdings in shares of Apple by 3.9% in the 1st quarter. Salus Financial Advisors LLC now owns 1,310 shares of the iPhone maker's stock worth $291,000 after acquiring an additional 49 shares during the last quarter. Institutional investors own 67.73% of the company's stock.

About Apple

Apple Inc designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod.