Apple Inc. $AAPL Stock: HighTower Advisors LLC Lowers Stake

Key Points

• HighTower Advisors reduced its Apple stake by 2.6% in the second quarter, selling 304,616 shares and retaining 11.47 million shares valued at approximately $3.32 billion. Institutional investors collectively own 67.73% of Apple.
• Apple shares opened at $336.64, down 1.1%, with a market capitalization of about $4.91 trillion and a P/E ratio of 38.61. The company recently exceeded quarterly earnings and revenue expectations, while analysts maintain a “Moderate Buy” consensus with an average price target of $340.02.
• Investor sentiment is mixed: potential growth from consumer AI and smart-home products contrasts with concerns over iPhone demand, elevated valuation, higher memory costs and supplier order reductions.

HighTower Advisors LLC lessened its holdings in Apple Inc. (NASDAQ:AAPL - Free Report) by 2.6% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 11,467,783 shares of the iPhone maker's stock after selling 304,616 shares during the period. Apple makes up about 3.2% of HighTower Advisors LLC's investment portfolio, making the stock its 2nd largest position. HighTower Advisors LLC owned about 0.08% of Apple worth $3,318,318,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of the business. Berkshire Hathaway Inc bought a new position in shares of Apple in the 2nd quarter valued at about $65,950,297,000. Bank of America Corp DE bought a new stake in Apple during the second quarter worth approximately $36,986,090,000. Legal & General Group Plc purchased a new stake in Apple during the second quarter valued at approximately $30,443,242,000. Nuveen LLC raised its position in Apple by 3.8% during the fourth quarter. Nuveen LLC now owns 75,000,920 shares of the iPhone maker's stock valued at $20,389,750,000 after purchasing an additional 2,725,121 shares during the period. Finally, Amundi lifted its stake in shares of Apple by 23.2% in the 1st quarter. Amundi now owns 73,082,616 shares of the iPhone maker's stock valued at $18,547,637,000 after purchasing an additional 13,780,080 shares during the last quarter. Institutional investors own 67.73% of the company's stock.

Key Stories 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

Apple Stock Down 1.1%

Shares of NASDAQ AAPL opened at $336.64 on Friday. Apple Inc. has a 12-month low of $243.42 and a 12-month high of $345.34. The stock's fifty day simple moving average is $322.61 and its two-hundred day simple moving average is $302.99. The stock has a market capitalization of $4.91 trillion, a PE ratio of 38.61, a price-to-earnings-growth ratio of 2.71 and a beta of 1.07. The company has a current ratio of 1.00, a quick ratio of 0.93 and a debt-to-equity ratio of 0.66.

Apple (NASDAQ:AAPL - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The iPhone maker reported $2.02 EPS 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 the consensus estimate of $109.04 billion. Apple had a net margin of 27.62% and a return on equity of 135.46%. The business's revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.57 earnings per share. As a group, analysts expect that Apple Inc. will post 8.75 EPS for the current fiscal year.

Apple Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Stockholders 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 of this dividend was Monday, August 10th. Apple's payout ratio is 12.39%.

Insider Buying and Selling

In related news, CEO John Ternus sold 25,412 shares of Apple stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $332.94, for a total transaction 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 trade represents a 29.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through 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 business's stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $336.18, for a total value of $806,495.82. Following the completion of the transaction, the senior vice president directly owned 41,992 shares of the company's stock, valued at $14,116,870.56. The trade was a 5.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 279,383 shares of company stock worth $92,912,517. Corporate insiders own 0.06% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. BTIG Research began coverage on Apple in a research report on Monday, August 17th. They set a "neutral" rating on the stock. Wells Fargo & Company restated an "overweight" rating and issued a $350.00 price target (up from $310.00) on shares of Apple in a research report on Friday, July 31st. Piper Sandler assumed coverage on shares of Apple in a research note on Monday, August 17th. They set an "overweight" rating for the company. Barclays reiterated an "underweight" rating and set a $245.00 price objective (down from $253.00) on shares of Apple in a research report on Friday, July 31st. Finally, China Renaissance downgraded shares of Apple from a "buy" rating to a "hold" rating and reduced their target price for the company from $329.00 to $280.00 in a research note on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $340.02.

Apple Company 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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