Apple (NASDAQ:AAPL) Shares Up 1.7% on Analyst Upgrade

Key Points

• Shares of Apple Inc. rose 1.7% following an upgrade by Bank of America, which increased its price target from $240.00 to $250.00.
• Analysts maintain a consensus rating of "Moderate Buy" on Apple, with an average target price of $237.60 and a total of fifteen "buy" ratings from various institutions.
• Apple reported quarterly earnings of $1.57 EPS, exceeding estimates, with revenue of $94.04 billion, a 9.6% increase year-over-year.

Apple Inc. (NASDAQ:AAPL - Get Free Report)'s share price traded up 1.7% on Friday after Bank of America raised their price target on the stock from $240.00 to $250.00. Bank of America currently has a buy rating on the stock. Apple traded as high as $223.57 and last traded at $223.74. 20,315,455 shares were traded during mid-day trading, a decline of 65% from the average session volume of 57,341,547 shares. The stock had previously closed at $220.03.

A number of other equities research analysts have also recently commented on AAPL. Citigroup raised their price target on shares of Apple from $240.00 to $245.00 and gave the stock a "buy" rating in a report on Friday, August 1st. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Apple in a research report on Wednesday, May 21st. UBS Group upped their target price on Apple from $210.00 to $220.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. KeyCorp raised shares of Apple from an "underweight" rating to a "sector weight" rating in a research report on Monday, April 14th. Finally, Monness Crespi & Hardt upped their price objective on shares of Apple from $245.00 to $270.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Two analysts have rated the stock with a sell rating, twelve have assigned a hold rating, fifteen have assigned a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $237.60.

Insider Activity at Apple

In related news, insider Chris Kondo sold 4,486 shares of the stock in a transaction on Monday, May 12th. The stock was sold at an average price of $208.19, for a total value of $933,940.34. Following the sale, the insider owned 15,533 shares in the company, valued at approximately $3,233,815.27. This trade represents a 22.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.06% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of AAPL. Advanced Portfolio Management LLC raised its position in Apple by 0.3% during the fourth 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 in the last quarter. Baker Boyer National Bank raised its holdings 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 buying an additional 47 shares in the last quarter. Family Capital Management Inc. boosted its stake in Apple by 0.3% in the fourth quarter. Family Capital Management Inc. now owns 16,910 shares of the iPhone maker's stock worth $4,235,000 after buying an additional 48 shares in the last quarter. Farmers & Merchants Trust Co of Chambersburg PA boosted its stake in Apple by 0.3% in the fourth quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 16,682 shares of the iPhone maker's stock worth $4,178,000 after buying an additional 48 shares in the last quarter. Finally, Salus Financial Advisors LLC raised its stake in shares of Apple by 3.9% during the first 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 in the last quarter. Hedge funds and other institutional investors own 67.73% of the company's stock.

Apple Trading Up 2.2%

The stock has a market capitalization of $3.34 trillion, a P/E ratio of 34.11, a price-to-earnings-growth ratio of 2.24 and a beta of 1.16. The stock's fifty day moving average price is $206.24 and its two-hundred day moving average price is $213.17. The company has a current ratio of 0.87, a quick ratio of 0.83 and a debt-to-equity ratio of 1.25.

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

Apple Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 14th. Stockholders of record on Monday, August 11th will be issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Monday, August 11th. Apple's dividend payout ratio is currently 15.78%.

Apple announced that its Board of Directors has approved a share repurchase program on Thursday, May 1st that allows the company to repurchase $100.00 billion in shares. This repurchase authorization allows the iPhone maker to buy up to 3.1% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

Apple Company Profile

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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