Apple (NASDAQ:AAPL) Trading Up 1.2% - Should You Buy?

Key Points

• Apple's stock price increased by 1.2%, reaching $262.82 after trading as high as $264.13 during the day, with a significant drop in trading volume.
• Analysts have issued various ratings and price targets for Apple, with Sanford C. Bernstein and Melius Research setting targets at $290.00, indicating strong expected performance.
• The company recently announced a quarterly dividend of $0.26 per share, representing an annual yield of 0.4%, as well as strong quarterly earnings exceeding analysts' expectations.

Apple Inc. (NASDAQ:AAPL - Get Free Report)'s share price was up 1.2% on Friday . The company traded as high as $264.13 and last traded at $262.82. Approximately 38,117,537 shares changed hands during mid-day trading, a decline of 32% from the average daily volume of 56,066,938 shares. The stock had previously closed at $259.58.

Analysts Set New Price Targets

A number of analysts have recently weighed in on AAPL shares. Sanford C. Bernstein started coverage on shares of Apple in a report on Monday, September 15th. They issued an "outperform" rating and a $290.00 target price on the stock. JPMorgan Chase & Co. upped their price target on shares of Apple from $255.00 to $280.00 and gave the company an "overweight" rating in a report on Friday, September 19th. HSBC set a $220.00 price target on shares of Apple and gave the company a "hold" rating in a report on Monday, September 8th. Seaport Res Ptn upgraded shares of Apple to a "strong-buy" rating in a report on Wednesday, October 1st. Finally, Melius Research set a $290.00 price target on shares of Apple and gave the company a "buy" rating in a report on Wednesday, September 10th. Four research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Apple has an average rating of "Moderate Buy" and an average target price of $252.47.

Apple Price Performance

The firm's 50-day moving average price is $243.53 and its two-hundred day moving average price is $218.56. The stock has a market cap of $3.90 trillion, a PE ratio of 39.88, a PEG ratio of 2.51 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.

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

Apple Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Investors of record on Monday, August 11th were given 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 yield of 0.4%. Apple's dividend payout ratio is presently 15.78%.

Insider Activity

In related news, SVP Deirdre O'brien sold 43,013 shares of the stock in a transaction that occurred on Thursday, October 2nd. The shares were sold at an average price of $257.39, for a total transaction of $11,071,116.07. Following the completion of the sale, the senior vice president owned 136,687 shares of the company's stock, valued at $35,181,866.93. This represents a 23.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Kevan Parekh sold 4,199 shares of the stock in a transaction that occurred on Thursday, October 16th. The shares were sold at an average price of $247.39, for a total transaction 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. The trade was a 32.39% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 259,121 shares of company stock worth $65,358,981. 0.06% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Apple

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Ryan Investment Management Inc. purchased a new position in shares of Apple in the second quarter worth $31,000. ROSS JOHNSON & Associates LLC raised its holdings 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 buying an additional 180 shares during the last quarter. Nexus Investment Management ULC raised its holdings 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 buying an additional 200 shares during the last quarter. Elite Financial Inc. purchased a new position in shares of Apple in the first quarter worth $58,000. Finally, LSV Asset Management purchased a new position in shares of Apple in the fourth quarter worth $65,000. Hedge funds and other 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.

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