Apple Inc. $AAPL Holdings Trimmed by Engineers Gate Manager LP

Key Points

• Engineers Gate Manager LP cut its Apple stake by 84.4% in the second quarter, selling 32,946 shares and retaining 6,110 shares valued at approximately $1.77 million.
• Apple continues to attract substantial institutional interest, with Berkshire Hathaway, Bank of America, Legal & General, Deutsche Bank and Mitsubishi UFJ among firms reporting new positions; institutions collectively own 67.73% of the stock.
• Investor outlook remains mixed: analysts see potential upside from artificial intelligence and smart-home expansion, while concerns include softer premium iPhone demand, elevated valuation, higher memory costs and execution risks.

Engineers Gate Manager LP lowered its stake in shares of Apple Inc. (NASDAQ:AAPL - Free Report) by 84.4% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 6,110 shares of the iPhone maker's stock after selling 32,946 shares during the period. Engineers Gate Manager LP's holdings in Apple were worth $1,768,000 as of its most recent SEC filing.

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

Apple News Roundup

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

Insider Activity at Apple

In related news, insider Timothy Cook sold 191,753 shares of Apple stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $332.96, for a total transaction of $63,846,078.88. Following the completion of the sale, the insider directly owned 3,264,168 shares of the company's stock, valued at approximately $1,086,837,377.28. This trade represents a 5.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO John Ternus sold 25,412 shares of the company's stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $332.94, for a total value of $8,460,671.28. Following the completion of the transaction, the chief executive officer directly owned 59,567 shares in the company, valued at approximately $19,832,236.98. This represents a 29.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 279,383 shares of company stock valued at $92,912,517 in the last ninety days. Company insiders own 0.06% of the company's stock.

Apple Stock Performance

Shares of Apple stock opened at $336.64 on Monday. The firm has a fifty day moving average of $322.61 and a two-hundred day moving average of $303.36. The stock has a market capitalization of $4.91 trillion, a price-to-earnings ratio of 38.61, a PEG ratio of 2.68 and a beta of 1.07. Apple Inc. has a 52 week low of $243.42 and a 52 week high of $345.34. 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 released its quarterly earnings results on Thursday, July 30th. The iPhone maker reported $2.02 EPS for the quarter, topping analysts' consensus estimates of $1.89 by $0.13. The company had revenue of $109.42 billion for the quarter, compared to analyst estimates of $109.04 billion. Apple had a return on equity of 135.46% and a net margin of 27.62%. Apple's revenue was up 16.4% compared to the same quarter last year. During the same quarter last year, the firm posted $1.57 earnings per share. As a group, equities research analysts predict that Apple Inc. will post 8.75 EPS for the current year.

Apple Dividend Announcement

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

Wall Street Analyst Weigh In

A number of research firms recently issued reports on AAPL. Arete Research raised their target price on shares of Apple from $305.00 to $335.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Citic Securities upped their price target on shares of Apple from $300.00 to $349.00 in a report on Thursday, August 6th. Needham & Company LLC restated a "hold" rating on shares of Apple in a report on Thursday, October 1st. Royal Bank Of Canada set a $365.00 price target on Apple in a research report on Wednesday, July 15th. Finally, Robert W. Baird lifted their price objective on Apple from $310.00 to $330.00 and gave the stock an "outperform" rating in a research note on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $340.02.

Apple Profile

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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