Apple (NASDAQ:AAPL) Trading Up 1.6% - Time to Buy?

Key Points

• Apple's stock price rose by 1.6% during mid-day trading, reaching $228.59, but the trading volume was significantly lower than average with about 10.88 million shares exchanged.
• Recent analyst reports show mixed ratings for Apple, with two Strong Buy ratings, sixteen Buy ratings, and two Sell ratings, alongside a revised average price target of $237.98.
• The company announced a $100 billion stock buyback plan and recently declared a quarterly dividend of $0.26 per share, reflecting management's confidence in its stock value.

Apple Inc. (NASDAQ:AAPL - Get Free Report) was up 1.6% during mid-day trading on Friday . The stock traded as high as $228.67 and last traded at $228.59. Approximately 10,884,141 shares traded hands during mid-day trading, a decline of 81% from the average daily volume of 57,201,168 shares. The stock had previously closed at $224.90.

Analyst Ratings Changes

AAPL has been the subject of a number of recent research reports. Loop Capital lowered their price target on shares of Apple from $230.00 to $226.00 and set a "hold" rating for the company in a report on Thursday. Jefferies Financial Group upgraded Apple from an "underperform" rating to a "hold" rating in a report on Friday, July 18th. The Goldman Sachs Group reiterated a "buy" rating on shares of Apple in a report on Wednesday, May 21st. Barclays boosted their target price on Apple from $173.00 to $180.00 and gave the stock an "underweight" rating in a report on Friday, August 1st. Finally, Monness Crespi & Hardt raised 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. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $237.98.

Apple Stock Performance

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 $3.38 trillion, a P/E ratio of 34.56, a price-to-earnings-growth ratio of 2.37 and a beta of 1.16. The company has a fifty day moving average of $211.89 and a two-hundred day moving average of $213.13.

Apple (NASDAQ:AAPL - Get Free Report) last issued its earnings results on Thursday, July 31st. The iPhone maker reported $1.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 analysts' expectations of $88.64 billion. During the same quarter last year, the company posted $1.40 earnings per share. Apple's revenue was up 9.6% on a year-over-year basis. On average, equities analysts anticipate that Apple Inc. will post 7.28 EPS for the current year.

Apple Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, August 11th were given 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 was Monday, August 11th. Apple's payout ratio is 15.78%.

Apple declared that its board has authorized a stock buyback plan on Thursday, May 1st that allows the company to buyback $100.00 billion in shares. This buyback authorization allows the iPhone maker to buy up to 3.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling at Apple

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

Institutional Investors Weigh In On Apple

A number of institutional investors have recently bought and sold shares of AAPL. Advanced Portfolio Management LLC grew 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 worth $3,260,000 after buying an additional 47 shares in the last quarter. Baker Boyer National Bank grew its position in Apple by 0.3% during the 2nd quarter. Baker Boyer National Bank now owns 18,011 shares of the iPhone maker's stock worth $3,695,000 after acquiring an additional 47 shares during the last quarter. Beddow Capital Management Inc. grew its position in Apple by 1.8% during the 2nd quarter. Beddow Capital Management Inc. now owns 2,597 shares of the iPhone maker's stock worth $533,000 after acquiring an additional 47 shares during the last quarter. Salus Financial Advisors LLC raised its position in Apple by 3.9% in the 1st quarter. Salus Financial Advisors LLC now owns 1,310 shares of the iPhone maker's stock worth $291,000 after purchasing an additional 49 shares during the last quarter. Finally, Red Tortoise LLC raised its position in Apple by 0.9% in the 2nd quarter. Red Tortoise LLC now owns 5,717 shares of the iPhone maker's stock worth $1,173,000 after purchasing an additional 49 shares during the last quarter. 67.73% of the stock is currently owned by institutional investors and hedge funds.

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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