Apple (NASDAQ:AAPL) Stock Price Expected to Rise, TD Cowen Analyst Says

Key Points

• TD Cowen raised Apple’s price target from $350 to $400 and maintained a “Buy” rating, implying 32.19% upside from the reported $302.61 share price. The broader analyst consensus is “Moderate Buy,” with an average target of $331.60.
• Apple’s latest quarter exceeded expectations, with revenue rising 16.4% year over year to $109.42 billion and EPS reaching $2.02 versus the $1.89 consensus estimate. iPhone and Mac sales were particularly strong.
• Despite strong results, investors face risks from below-consensus fourth-quarter guidance, significant supply constraints, rising memory costs, weaker-than-expected Services growth and leadership-transition uncertainty.

Apple (NASDAQ:AAPL - Get Free Report) had its price target hoisted by equities researchers at TD Cowen from $350.00 to $400.00 in a report issued on Friday, Marketbeat reports. The brokerage presently has a "buy" rating on the iPhone maker's stock. TD Cowen's price target would indicate a potential upside of 32.19% from the company's current price.

AAPL has been the subject of a number of other reports. Maxim Group reissued a "buy" rating and issued a $350.00 price objective (up from $310.00) on shares of Apple in a research note on Tuesday, June 9th. Sanford C. Bernstein reissued an "outperform" rating on shares of Apple in a research report on Monday, June 8th. Jefferies Financial Group restated a "hold" rating on shares of Apple in a report on Tuesday, June 9th. Weiss Ratings reissued a "buy (b-)" rating on shares of Apple in a research report on Wednesday, July 15th. Finally, Rosenblatt Securities raised their price objective on shares of Apple from $276.00 to $300.00 and gave the stock a "neutral" rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Apple presently has a consensus rating of "Moderate Buy" and an average target price of $331.60.

Apple Price Performance

Shares of Apple stock traded down $30.82 during trading on Friday, hitting $302.61. 44,797,219 shares of the stock traded hands, compared to its average volume of 50,515,027. The company has a quick ratio of 1.02, a current ratio of 1.07 and a debt-to-equity ratio of 0.70. Apple has a 52 week low of $201.50 and a 52 week high of $344.57. The stock has a market cap of $4.44 trillion, a price-to-earnings ratio of 36.65, a PEG ratio of 2.92 and a beta of 1.10. The firm's fifty day moving average is $309.51 and its 200-day moving average is $281.25.

Apple (NASDAQ:AAPL - Get Free Report) last released its earnings results on Thursday, July 30th. The iPhone maker reported $2.02 EPS for the quarter, beating analysts' consensus estimates of $1.89 by $0.13. The company had revenue of $109.42 billion during the quarter, compared to analysts' expectations of $109.04 billion. Apple had a return on equity of 146.69% and a net margin of 27.15%.The firm's revenue for the quarter was up 16.4% compared to the same quarter last year. During the same quarter last year, the business posted $1.57 EPS. Research analysts expect that Apple will post 8.76 EPS for the current fiscal year.

Insider Transactions at Apple

In related news, insider Ben Borders sold 1,274 shares of Apple stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $290.00, for a total value of $369,460.00. Following the completion of the transaction, the insider owned 38,713 shares in the company, valued at approximately $11,226,770. The trade was a 3.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Apple

Hedge funds have recently bought and sold shares of the company. Lifetime Wealth Management P.C. purchased a new position in shares of Apple during the 4th quarter worth approximately $41,000. ROSS JOHNSON & Associates LLC lifted its stake in Apple by 1,800.0% in the 1st quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker's stock valued at $42,000 after buying an additional 180 shares in the last quarter. LSV Asset Management acquired a new stake in Apple during the 4th quarter valued at $65,000. Timmons Wealth Management LLC purchased a new position in Apple during the fourth quarter worth $69,000. Finally, Inspire Investing LLC acquired a new position in shares of Apple in the fourth quarter worth $76,000. 67.73% of the stock is owned by hedge funds and other institutional investors.

Apple News Summary

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple reported a record June quarter, with revenue of $109.4 billion, up 16% year over year, and diluted EPS of $2.02, up 29%. Results exceeded consensus estimates. Apple reports third quarter results
• Positive Sentiment: iPhone revenue surged 22% to $54.3 billion, while Mac revenue rose 29% to $10.4 billion, demonstrating resilient demand even as Apple has raised prices on some products. Apple revenue and profits beat expectations
• Positive Sentiment: Apple’s active installed base reached a record, and management highlighted long-term opportunities in consumer AI, including a more capable Siri and potential paid AI features. Several analysts maintained Buy or Overweight ratings, with targets as high as $365. Apple’s hybrid AI strategy
• Neutral Sentiment: Apple declared a quarterly dividend of $0.27 per share, payable August 13 to shareholders of record August 10. The company is also launching a U.S. leasing program that could encourage more frequent device upgrades.
• Negative Sentiment: Fourth-quarter revenue guidance of $111.7 billion to $113.7 billion was below the roughly $114.3 billion consensus estimate. Management warned that “very significant” supply constraints would affect iPhones, Macs and iPads, while CEO Tim Cook described memory-price pressure as a “hundred-year flood.” Apple slides as supply snags cloud outlook
• Negative Sentiment: Investors are concerned that rising memory costs will pressure margins and that tariff refunds, which added approximately $0.11 to quarterly EPS and benefited gross margin, will not recur. Apple is evaluating alternatives, including possible product-price increases.
• Negative Sentiment: Services revenue reached a record $30.7 billion but missed expectations, affected by foreign-exchange headwinds, weaker gaming activity and App Store changes. China performance also disappointed, adding to concerns about future growth. Apple services growth concerns
• Negative Sentiment: At approximately 40 times earnings after a sharp rally and a $5 trillion market capitalization, AAPL’s valuation leaves less room for execution or guidance disappointments. Tim Cook’s planned September departure also adds leadership-transition uncertainty.

Apple Company Profile

Apple Inc NASDAQ: AAPL is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple's principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.