Apple Inc. $AAPL Stock Sold by Columbia Asset Management

Key Points

• Columbia Asset Management cut its Apple stake by 2.7% in the third quarter, selling 5,102 shares; it still held 184,879 shares worth about $61.6 million, making Apple its largest position.
• Apple reported quarterly revenue of $114.48 billion and EPS of $2.10, both above analyst expectations, with revenue up 11.7% year over year.
• Despite the earnings beat, investors face margin concerns: Apple forecast holiday-quarter gross margins of 45%–46%, citing higher memory-chip costs and Siri AI spending.

Columbia Asset Management lowered its position in shares of Apple Inc. (NASDAQ:AAPL - Free Report) by 2.7% in the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 184,879 shares of the iPhone maker's stock after selling 5,102 shares during the quarter. Apple accounts for 9.9% of Columbia Asset Management's holdings, making the stock its biggest position. Columbia Asset Management's holdings in Apple were worth $61,569,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in AAPL. Avenir Tech Ltd bought a new stake in Apple during the second quarter worth about $29,000. Ironwood Wealth Management Inc. acquired a new position in Apple during the third quarter valued at approximately $34,000. Longfellow Investment Management Co. LLC bought a new position in Apple in the second quarter valued at approximately $30,000. ABS Investment Management LLC bought a new position in Apple in the second quarter valued at approximately $376,168,000. Finally, Bamco Inc. NY acquired a new position in shares of Apple during the 2nd quarter worth approximately $118,000. 67.73% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Apple

In other Apple news, insider Timothy Cook sold 191,753 shares of the firm's stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $332.96, for a total value of $63,846,078.88. Following the completion of the sale, the insider directly owned 3,264,168 shares in the company, valued at approximately $1,086,837,377.28. This trade represents a 5.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 that occurred on Friday, October 2nd. The stock was sold at an average price of $332.94, for a total value of $8,460,671.28. Following 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 SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 289,252 shares of company stock valued at $96,301,063 in the last ninety days. Insiders own 0.06% of the company's stock.

Apple News Roundup

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple reported record September-quarter revenue of $114.48 billion, up 11.7% year over year, and EPS of $2.10, beating analyst estimates. Strong iPhone demand—iPhone revenue rose 17.5%—and Mac sales helped drive the results. Apple Q4 Earnings Beat Estimates, iPhone Drives Top-Line Growth
• Positive Sentiment: Bank of America reiterated its Buy rating, arguing that investors should look beyond near-term margin pressure to Apple’s longer-term opportunity. Buy Apple Stock After Earnings, Says Bank of America
• Negative Sentiment: The main pressure is Apple’s forecast for a 45%–46% gross margin in the holiday quarter, below the recent quarter’s 47.9%. Management cited sharply higher memory-chip costs and spending tied to Siri AI; investors worry these expenses will limit profit growth even with strong sales. Apple Shares Slide as Higher Memory Costs Fuel Margin Concerns
• Negative Sentiment: Investors also saw softer signals beneath the headline beat: services growth is expected to slow, China revenue missed expectations, and higher component costs are being accompanied by increased inventory and supplier commitments. The stock’s premium valuation may make it more vulnerable if growth or margins disappoint. Apple Growth, Margins Likely Face Pressure in 2027, UBS Says

Apple Price Performance

Shares of AAPL opened at $331.90 on Wednesday. The business has a 50-day simple moving average of $334.05 and a two-hundred day simple moving average of $297.13. The stock has a market cap of $4.84 trillion, a PE ratio of 37.00, a PEG ratio of 2.82 and a beta of 1.07. Apple Inc. has a 12-month low of $243.42 and a 12-month high of $351.73. The company has a quick ratio of 0.93, a current ratio of 1.00 and a debt-to-equity ratio of 0.66.

Apple (NASDAQ:AAPL - Get Free Report) last released its quarterly earnings results on Monday, November 2nd. The iPhone maker reported $2.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.99 by $0.11. The firm had revenue of $114.48 billion during the quarter, compared to the consensus estimate of $113.40 billion. Apple had a net margin of 27.60% and a return on equity of 128.88%. The company's revenue for the quarter was up 11.7% on a year-over-year basis. During the same quarter last year, the firm earned $1.85 earnings per share. Analysts anticipate that Apple Inc. will post 9.56 earnings per share for the current fiscal year.

Apple Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 16th. Stockholders of record on Thursday, November 12th will be paid a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date of this dividend is Thursday, November 12th. Apple's payout ratio is currently 12.39%.

Analysts Set New Price Targets

AAPL has been the topic of a number of recent analyst reports. Weiss Ratings raised Apple from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Deutsche Bank Aktiengesellschaft downgraded Apple from a "buy" rating to a "hold" rating in a report on Monday, August 17th. HSBC reissued a "buy" rating on shares of Apple in a report on Tuesday, October 27th. 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 note on Friday, July 31st. Finally, The Goldman Sachs Group initiated coverage on Apple in a report on Monday, August 17th. They issued a "buy" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $343.28.

About Apple

Apple Inc designs, develops and sells 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 applications that support its hardware ecosystem.

Apple's services business includes the App Store, Apple Music, Apple TV, Apple Arcade, iCloud, Apple Pay and other subscription, payment and digital-content offerings.

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