1,528 Apple Inc. $AAPL Shares Sold by Sterling Investment Advisors Ltd.

Key Points

• Sterling Investment Advisors reduced its Apple stake by 1.2%, selling 1,528 shares and retaining 130,967 shares worth approximately $37.9 million. Apple remains the firm’s third-largest holding and represents 5.8% of its portfolio.
• Apple reported quarterly earnings of $2.02 per share on $109.42 billion in revenue, beating analyst expectations, while revenue grew 16.4% year over year. The company also maintains a $0.27 quarterly dividend, equivalent to a 0.3% yield.
• Despite a “Moderate Buy” consensus and an average analyst price target of $340.02, investors face valuation and demand concerns, including potential iPhone order reductions, elevated costs, and Apple’s high earnings multiple.

Sterling Investment Advisors Ltd. decreased its holdings in Apple Inc. (NASDAQ:AAPL - Free Report) by 1.2% during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 130,967 shares of the iPhone maker's stock after selling 1,528 shares during the period. Apple comprises approximately 5.8% of Sterling Investment Advisors Ltd.'s investment portfolio, making the stock its 3rd biggest holding. Sterling Investment Advisors Ltd.'s holdings in Apple were worth $37,897,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in the business. Berkshire Hathaway Inc bought a new stake in Apple in the 2nd quarter valued at $65,950,297,000. Bank of America Corp DE acquired a new stake in Apple during the 2nd quarter valued at $36,986,090,000. Legal & General Group Plc bought a new position in Apple during the second quarter worth $30,443,242,000. Deutsche Bank AG bought a new position in Apple during the second quarter worth $13,658,359,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Apple during the second quarter worth $10,588,946,000. 67.73% of the stock is owned by institutional investors and hedge funds.

Apple Price Performance

NASDAQ:AAPL opened at $336.64 on Friday. Apple Inc. has a 52 week low of $243.42 and a 52 week high of $345.34. The firm has a market cap of $4.91 trillion, a price-to-earnings ratio of 38.61, a P/E/G ratio of 2.68 and a beta of 1.07. The firm's 50-day simple moving average is $322.61 and its 200 day simple moving average is $302.99. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.93 and a current ratio of 1.00.

Apple (NASDAQ:AAPL - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The iPhone maker reported $2.02 earnings per share for the quarter, topping the consensus estimate of $1.89 by $0.13. The business had revenue of $109.42 billion during the quarter, compared to analysts' expectations of $109.04 billion. Apple had a net margin of 27.62% and a return on equity of 135.46%. The business's revenue was up 16.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.57 EPS. As a group, sell-side analysts predict that Apple Inc. will post 8.75 earnings per share for the current year.

Apple Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, August 13th. Investors of record on Monday, August 10th were issued a dividend of $0.27 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $1.08 annualized dividend and a dividend yield of 0.3%. Apple's payout ratio is 12.39%.

Insider Activity at Apple

In related news, SVP Deirdre O'brien sold 46,389 shares of the business's stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $333.42, for a total transaction of $15,467,020.38. Following the sale, the senior vice president owned 136,810 shares in the company, valued at $45,615,190.20. The trade was a 25.32% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Jennifer Newstead sold 2,399 shares of the company's stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $332.01, for a total value of $796,491.99. Following the completion of the transaction, the senior vice president directly owned 39,593 shares of the company's stock, valued at $13,145,271.93. This represents a 5.71% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 279,383 shares of company stock worth $92,912,517. Corporate insiders own 0.06% of the company's stock.

Key Headlines Impacting Apple

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Potential AI upside: Analyst Dan Ives said Apple could become a “toll collector” for consumer AI by monetizing its more than 2.5 billion active devices and Services ecosystem. He estimates AI could add approximately $75 per share to the company’s value. Apple Could Be the Toll Collector of Consumer AI
• Positive Sentiment: Smart-home expansion: Apple’s planned October 13 “Welcome Home” event could introduce products such as a smart lock, thermostat and doorbell. The initiative may expand Apple’s hardware and Services opportunities and strengthen its position against Amazon and Google. Apple Smart Home Push
• Neutral Sentiment: Possible seasonal order adjustment: Bespoke Investment Group noted that Apple’s autumn iPhone order reductions have occurred in prior years and have sometimes been followed by a stock recovery. Investors will look for evidence that the latest cuts reflect normal supply-chain management rather than lasting demand weakness. Apple’s iPhone Order Cut and Stock Rebound
• Negative Sentiment: iPhone demand concerns: Nikkei Asia reported that Apple asked suppliers to cut iPhone 18 Pro component production, raising concerns that premium pricing is discouraging consumers. The reports are particularly important because Apple is preparing to pursue an even higher-priced product strategy, including a rumored $1,999 foldable iPhone. Apple Cuts iPhone 18 Pro Orders Due to Soft Demand
• Negative Sentiment: Valuation and execution risks: Apple’s elevated earnings multiple leaves less room for disappointment, while higher memory costs could pressure margins. A recent senior vice president stock sale was relatively small but adds to near-term caution. Apple Senior Vice President Stock Sale

Analysts Set New Price Targets

Several research firms have commented on AAPL. Robert W. Baird upped their price objective on shares of Apple from $310.00 to $330.00 and gave the company an "outperform" rating in a report on Friday, July 24th. Raymond James Financial restated a "market perform" rating on shares of Apple in a research note on Friday, July 31st. Oppenheimer reaffirmed a "market perform" rating on shares of Apple in a report on Thursday, September 10th. Deutsche Bank Aktiengesellschaft downgraded shares of Apple from a "buy" rating to a "hold" rating in a report on Monday, August 17th. Finally, Needham & Company LLC reiterated a "hold" rating on shares of Apple in a research note on Thursday, October 1st. One analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $340.02.

About Apple

Apple Inc is a technology company that designs, develops and markets consumer electronics, software and digital services. Its best-known products include the iPhone smartphone, Mac personal computers, iPad tablets, Apple Watch, AirPods and other accessories. The company also develops operating systems and software platforms, including iOS, macOS, iPadOS, watchOS and visionOS.

Apple's services business includes the App Store, Apple Music, Apple TV+, Apple Arcade, Apple News+, Apple Fitness+ and iCloud.

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