Apple (NASDAQ:AAPL) Shares Down 1.6% - Here's Why

Key Points

• Apple's stock price fell 1.6% during trading, dropping to approximately $258.45 from a previous close of $262.77, with trading volume down by 24% from its average.
• Analysts have mixed views on Apple, with Loop Capital upgrading it to a "buy" with a target price of $315, while Jefferies downgraded it to a "strong sell."
• Apple recently declared a quarterly dividend of $0.26 per share, resulting in an annual dividend yield of 0.4% and a payout ratio of 15.78%.

Apple Inc. (NASDAQ:AAPL - Get Free Report) traded down 1.6% during trading on Wednesday . The stock traded as low as $255.43 and last traded at $258.45. 42,848,261 shares traded hands during trading, a decline of 24% from the average session volume of 56,314,180 shares. The stock had previously closed at $262.77.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Loop Capital raised Apple from a "hold" rating to a "buy" rating and upped their target price for the company from $226.00 to $315.00 in a report on Monday. Jefferies Financial Group downgraded Apple from a "moderate sell" rating to a "strong sell" rating in a report on Monday. Melius Research set a $290.00 target price on Apple and gave the company a "buy" rating in a report on Wednesday, September 10th. Monness Crespi & Hardt upped their target price on Apple from $245.00 to $270.00 and gave the company a "buy" rating in a report on Friday, August 1st. Finally, Citigroup reaffirmed a "buy" rating on shares of Apple in a report on Wednesday, September 10th. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $252.47.

Apple Stock Down 1.6%

The company has a market cap of $3.84 trillion, a price-to-earnings ratio of 39.22, a P/E/G ratio of 2.55 and a beta of 1.09. The company has a current ratio of 0.87, a quick ratio of 0.83 and a debt-to-equity ratio of 1.25. The business has a fifty day moving average price of $242.49 and a two-hundred day moving average price of $217.74.

Apple (NASDAQ:AAPL - Get Free Report) last issued its earnings results on Thursday, July 31st. The iPhone maker reported $1.57 earnings per share for the quarter, beating analysts' consensus estimates of $1.43 by $0.14. The company had revenue of $94.04 billion for the quarter, compared to the consensus estimate of $88.64 billion. Apple had a return on equity of 170.91% and a net margin of 24.30%.The firm's quarterly revenue was up 9.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.40 EPS. On average, equities analysts predict that Apple Inc. will post 7.28 earnings per share for the current year.

Apple Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, August 14th. Stockholders of record on Monday, August 11th were paid a dividend of $0.26 per share. The ex-dividend date of this dividend was Monday, August 11th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.4%. Apple's dividend payout ratio (DPR) is 15.78%.

Insider Transactions at Apple

In other news, CEO Timothy D. Cook sold 129,963 shares of the firm's stock in a transaction dated Thursday, October 2nd. The stock was sold at an average price of $256.81, for a total transaction of $33,375,798.03. Following the completion of the sale, the chief executive officer directly owned 3,280,295 shares of the company's stock, valued at $842,412,558.95. This trade represents a 3.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Kevan Parekh sold 4,199 shares of the firm's stock in a transaction dated Thursday, October 16th. The stock was sold at an average price of $247.39, for a total value of $1,038,790.61. Following the sale, the chief financial officer directly owned 8,765 shares of the company's stock, valued at $2,168,373.35. This trade represents a 32.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 259,121 shares of company stock valued at $65,358,981 over the last 90 days. Company insiders own 0.06% of the company's stock.

Institutional Investors Weigh In On Apple

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Ryan Investment Management Inc. acquired a new stake in Apple in the 2nd quarter valued at approximately $31,000. ROSS JOHNSON & Associates LLC grew its stake in shares of Apple by 1,800.0% in the first quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker's stock worth $42,000 after acquiring an additional 180 shares during the last quarter. Nexus Investment Management ULC grew its stake in shares of Apple by 333.3% in the second quarter. Nexus Investment Management ULC now owns 260 shares of the iPhone maker's stock worth $53,000 after acquiring an additional 200 shares during the last quarter. Elite Financial Inc. acquired a new stake in shares of Apple in the first quarter worth $58,000. Finally, LSV Asset Management acquired a new stake in shares of Apple in the fourth quarter worth $65,000. 67.73% of the stock is owned by hedge funds and other institutional investors.

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.

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