HCR Wealth Advisors Reduces Position in Apple Inc. (NASDAQ:AAPL)

Key Points

• HCR Wealth Advisors has reduced its stake in Apple to 527,656 shares, accounting for 15.3% of its investment portfolio, making Apple its largest position.
• Vanguard Group, Geode Capital Management, and Northern Trust Corp are among several large investors that have increased their holdings in Apple during the fourth quarter, reflecting strong institutional interest in the stock.
• Apple announced a quarterly dividend increase to $0.26 per share and a $100 billion share repurchase plan, indicating confidence in its stock value.

HCR Wealth Advisors decreased its holdings in Apple Inc. (NASDAQ:AAPL - Free Report) by 0.4% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 527,656 shares of the iPhone maker's stock after selling 2,102 shares during the quarter. Apple makes up about 15.3% of HCR Wealth Advisors' investment portfolio, making the stock its largest position. HCR Wealth Advisors' holdings in Apple were worth $117,208,000 at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of the business. Tallon Kerry Patrick bought a new stake in shares of Apple during the fourth quarter worth $1,877,000. First National Bank of Hutchinson grew its stake in shares of Apple by 24.6% during the fourth quarter. First National Bank of Hutchinson now owns 35,319 shares of the iPhone maker's stock worth $8,845,000 after purchasing an additional 6,982 shares during the period. Capital & Planning LLC grew its stake in shares of Apple by 10.7% during the fourth quarter. Capital & Planning LLC now owns 27,298 shares of the iPhone maker's stock worth $6,836,000 after purchasing an additional 2,647 shares during the period. Eagle Capital Management LLC grew its stake in shares of Apple by 0.5% during the fourth quarter. Eagle Capital Management LLC now owns 54,085 shares of the iPhone maker's stock worth $13,544,000 after purchasing an additional 272 shares during the period. Finally, Brighton Jones LLC grew its stake in shares of Apple by 14.8% during the fourth quarter. Brighton Jones LLC now owns 537,314 shares of the iPhone maker's stock worth $134,554,000 after purchasing an additional 69,207 shares during the period. Institutional investors own 67.73% of the company's stock.

Apple Stock Down 1.1%

AAPL traded down $2.22 on Wednesday, hitting $209.05. 43,674,703 shares of the company were exchanged, compared to its average volume of 43,746,808. Apple Inc. has a 12 month low of $169.21 and a 12 month high of $260.10. The company has a market cap of $3.12 trillion, a PE ratio of 32.56, a PEG ratio of 2.32 and a beta of 1.20. The company has a debt-to-equity ratio of 1.18, a quick ratio of 0.78 and a current ratio of 0.82. The stock's fifty day moving average is $205.10 and its 200-day moving average is $214.16.

Apple (NASDAQ:AAPL - Get Free Report) last released its earnings results on Thursday, May 1st. The iPhone maker reported $1.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.62 by $0.03. Apple had a return on equity of 167.24% and a net margin of 24.30%. The business had revenue of $95.36 billion for the quarter, compared to analyst estimates of $94.04 billion. During the same quarter in the prior year, the company posted $1.53 earnings per share. Apple's revenue was up 5.1% on a year-over-year basis. Equities research analysts predict that Apple Inc. will post 7.28 EPS for the current fiscal year.

Apple Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 15th. Investors of record on Monday, May 12th were issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.50%. The ex-dividend date of this dividend was Monday, May 12th. This is a positive change from Apple's previous quarterly dividend of $0.25. Apple's dividend payout ratio is presently 16.20%.

Apple announced that its board has initiated a stock repurchase plan on Thursday, May 1st that allows the company to repurchase $100.00 billion in outstanding shares. This repurchase authorization allows the iPhone maker to reacquire up to 3.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Evercore ISI lifted their price objective on Apple to $250.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Apple in a research note on Wednesday, May 21st. Needham & Company LLC reaffirmed a "hold" rating on shares of Apple in a research note on Friday, July 25th. Raymond James Financial decreased their price objective on Apple from $250.00 to $230.00 and set an "outperform" rating for the company in a research note on Wednesday, April 30th. Finally, China Renaissance initiated coverage on Apple in a research note on Tuesday, April 22nd. They issued a "buy" rating and a $241.00 target price for the company. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating, fifteen have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $234.94.

Insider Transactions at Apple

In related news, insider Chris Kondo sold 4,486 shares of the company's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $208.19, for a total transaction of $933,940.34. Following the sale, the insider owned 15,533 shares in the company, valued at approximately $3,233,815.27. This represents a 22.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.06% of the company's stock.

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.