Apple (NASDAQ:AAPL) Trading 1.3% Higher - Still a Buy?

Key Points

• Apple's stock price increased by 1.3% on Tuesday, closing at $230.20 after trading as high as $229.94, with a significant drop in trading volume by 76% compared to its daily average.
• Analyst ratings are mixed, with two sell ratings, twelve hold ratings, and fifteen buy ratings, leading to a consensus rating of "Moderate Buy" and a target price of $237.60.
• Apple announced a quarterly dividend of $0.26 per share along with a $100 billion stock buyback program, reflecting the board's belief that the stock is undervalued.

Apple Inc. (NASDAQ:AAPL - Get Free Report)'s stock price was up 1.3% on Tuesday . The company traded as high as $229.94 and last traded at $230.20. Approximately 13,597,562 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 57,717,828 shares. The stock had previously closed at $227.18.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on AAPL shares. Loop Capital cut their price objective on shares of Apple from $230.00 to $215.00 and set a "hold" rating on the stock in a research note on Wednesday, April 30th. Wedbush reiterated an "outperform" rating and issued a $270.00 price objective on shares of Apple in a research note on Thursday, August 7th. Bank of America increased their price objective on shares of Apple from $240.00 to $250.00 and gave the stock a "buy" rating in a research note on Thursday, August 7th. Evercore ISI reiterated an "outperform" rating and issued a $250.00 price objective on shares of Apple in a research note on Wednesday. Finally, Needham & Company LLC restated a "hold" rating on shares of Apple in a research report on Friday, July 25th. Two research analysts have rated the stock with a sell rating, twelve have given a hold rating, sixteen have issued a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, Apple presently has an average rating of "Moderate Buy" and an average price target of $237.60.

Apple Trading Down 0.5%

The company's 50 day moving average price is $209.69 and its two-hundred day moving average price is $213.33. The company has a debt-to-equity ratio of 1.25, a current ratio of 0.87 and a quick ratio of 0.83. The stock has a market capitalization of $3.44 trillion, a PE ratio of 35.14, a P/E/G ratio of 2.44 and a beta of 1.16.

Apple (NASDAQ:AAPL - Get Free Report) last posted 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 for the quarter, compared to the consensus estimate of $88.64 billion. During the same period last year, the firm posted $1.40 earnings per share. The company's revenue for the quarter was up 9.6% on a year-over-year basis. As a group, analysts expect that Apple Inc. will post 7.28 earnings per share for the current year.

Apple Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Shareholders 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 yield of 0.4%. Apple's payout ratio is 15.78%.

Apple declared that its Board of Directors has approved a share repurchase program on Thursday, May 1st that permits the company to buyback $100.00 billion in outstanding shares. This buyback authorization permits the iPhone maker to purchase up to 3.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other Apple news, SVP Deirdre O'brien sold 34,821 shares of Apple stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $223.20, for a total transaction of $7,772,047.20. Following the transaction, the senior vice president directly owned 136,687 shares of the company's stock, valued at $30,508,538.40. The trade was a 20.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.06% of the stock is owned by company insiders.

Hedge Funds Weigh In On Apple

A number of institutional investors have recently bought and sold shares of the company. Ryan Investment Management Inc. acquired a new stake in shares of Apple during the second quarter valued at about $31,000. ROSS JOHNSON & Associates LLC increased its position in shares of Apple by 1,800.0% during the first quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker's stock valued at $42,000 after acquiring an additional 180 shares during the last quarter. Conquis Financial LLC acquired a new position in shares of Apple in the fourth quarter valued at approximately $63,000. Nexus Investment Management ULC grew 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 valued at $53,000 after purchasing an additional 200 shares in the last quarter. Finally, LSV Asset Management acquired a new position in shares of Apple in the fourth quarter valued at approximately $65,000. 67.73% of the stock is owned by hedge funds and other institutional investors.

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.