Bridgewater Advisors Inc. Takes Position in Apple Inc. $AAPL

Key Points

• Bridgewater Advisors bought 215,688 Apple shares worth approximately $65.4 million in the second quarter, making Apple about 3.6% of its portfolio and its sixth-largest holding.
• Institutional ownership remains significant at 67.73%, while analysts maintain a “Moderate Buy” consensus with an average price target of $334.91.
• Apple reported quarterly revenue of $109.42 billion, up 16.4% year over year, and earnings of $2.02 per share—above expectations. However, elevated valuation, rising component costs and anticipated margin pressure remain key risks.

Bridgewater Advisors Inc. bought a new stake in Apple Inc. (NASDAQ:AAPL - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 215,688 shares of the iPhone maker's stock, valued at approximately $65,444,000. Apple accounts for approximately 3.6% of Bridgewater Advisors Inc.'s portfolio, making the stock its 6th biggest position.

Several other institutional investors and hedge funds have also recently bought and sold shares of the business. Baron Silver Stevens Financial Advisors LLC raised its stake in shares of Apple by 65.6% during the 2nd quarter. Baron Silver Stevens Financial Advisors LLC now owns 66,717 shares of the iPhone maker's stock worth $19,305,000 after buying an additional 26,418 shares in the last quarter. Rainier Family Wealth Inc. lifted its holdings in shares of Apple by 14.1% in the 1st quarter. Rainier Family Wealth Inc. now owns 24,386 shares of the iPhone maker's stock valued at $6,189,000 after buying an additional 3,014 shares during the period. Eaton Cambridge Inc. boosted its stake in shares of Apple by 21.3% in the first quarter. Eaton Cambridge Inc. now owns 13,968 shares of the iPhone maker's stock valued at $3,545,000 after buying an additional 2,450 shares in the last quarter. Torren Management LLC purchased a new stake in shares of Apple in the fourth quarter valued at approximately $1,178,000. Finally, Summit Wealth Partners LLC grew its holdings in Apple by 108.3% during the first quarter. Summit Wealth Partners LLC now owns 34,989 shares of the iPhone maker's stock worth $8,880,000 after acquiring an additional 18,188 shares during the period. Hedge funds and other institutional investors own 67.73% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have issued reports on AAPL. Citigroup reiterated a "buy" rating on shares of Apple in a research report on Thursday. Needham & Company LLC reaffirmed a "hold" rating on shares of Apple in a research note on Tuesday. JPMorgan Chase & Co. lowered their price target on shares of Apple from $345.00 to $340.00 and set an "overweight" rating on the stock in a research note on Friday, July 31st. BTIG Research began coverage on shares of Apple in a report on Monday, August 17th. They issued a "neutral" rating for the company. Finally, Rosenblatt Securities reiterated a "neutral" rating and issued a $303.00 price objective on shares of Apple in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, Apple currently has a consensus rating of "Moderate Buy" and an average target price of $334.91.

Apple News Roundup

Here are the key news stories impacting Apple this week:

• Positive Sentiment: iPhone Duo creates a potential new growth cycle. Apple’s $1,999 foldable iPhone, scheduled to arrive October 23, could drive upgrades, deepen ecosystem engagement and add a high-margin premium product category. Some analysts believe foldables could eventually account for 10% to 20% of iPhone revenue. How Wall Street viewed Apple's foldable iPhone
• Positive Sentiment: Analysts see renewed hardware momentum. Alongside the Duo, Apple unveiled the iPhone 18 Pro lineup, new Apple Watch models, AirPods 5 and expanded Siri AI features. TD Cowen maintained a Buy rating with a $400 target, supporting the bullish reaction. TD Cowen reiterates Buy rating
• Positive Sentiment: Carrier promotions could reduce sticker-price resistance. T-Mobile, AT&T and Verizon are offering installment and trade-in incentives for the expensive Duo, potentially broadening access without an immediate industrywide price war. Wireless carrier promotions
• Neutral Sentiment: Wall Street remains divided. Bank of America retained a Buy rating but lowered its price target to $370, while Rosenblatt kept a Neutral rating and $303 target. The debate centers on Duo demand, supply constraints, valuation and the durability of the upgrade cycle.
• Negative Sentiment: Margin pressure remains the main risk. Apple raised iPhone Pro prices by $100, but memory and other component costs are rising rapidly. Management has already guided to lower gross margins, raising concerns that pricing may not fully offset higher costs. Apple margin pressure from memory costs
• Negative Sentiment: Premium valuation and competition limit upside. Apple trades near the upper end of its historical earnings multiple, while Huawei, Xiaomi and Samsung remain strong competitors in China and the foldable market.
• Negative Sentiment: Insider selling is a modest cautionary signal. SVP Jennifer Newstead sold approximately $456,000 of stock, reducing her direct holdings by about 4%, although she retains a substantial position.

Insider Activity at Apple

In other Apple news, SVP Jennifer Newstead sold 1,439 shares of Apple stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $317.01, for a total value of $456,177.39. Following the completion of the sale, the senior vice president directly owned 35,790 shares of the company's stock, valued at approximately $11,345,787.90. The trade was a 3.87% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Ben Borders sold 116 shares of the business's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $295.14, for a total value of $34,236.24. Following the completion of the transaction, the insider owned 38,713 shares of the company's stock, valued at $11,425,754.82. This trade represents a 0.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 7,310 shares of company stock worth $2,279,378 in the last three months. Insiders own 0.06% of the company's stock.

Apple Trading Up 1.7%

Apple stock opened at $332.27 on Friday. The stock has a 50-day moving average price of $318.20 and a 200 day moving average price of $292.45. Apple Inc. has a 52 week low of $229.02 and a 52 week high of $344.57. The stock has a market cap of $4.85 trillion, a PE ratio of 38.10, a P/E/G ratio of 2.88 and a beta of 1.08. 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 released its earnings results on Thursday, July 30th. The iPhone maker reported $2.02 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.89 by $0.13. Apple had a net margin of 27.62% and a return on equity of 135.46%. The company had revenue of $109.42 billion for the quarter, compared to analyst estimates of $109.04 billion. During the same period in the prior year, the firm earned $1.57 EPS. The firm's quarterly revenue was up 16.4% on a year-over-year basis. Equities research analysts predict that Apple Inc. will post 8.74 earnings per share for the current fiscal year.

Apple Announces Dividend

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

About Apple

Apple Inc is a technology company that designs, develops and markets consumer electronics, software and digital services. Its principal products include the iPhone, Mac computers, iPad tablets, Apple Watch, AirPods and other accessories. The company also develops operating systems and applications that support its hardware products.

Apple's services business includes the App Store, Apple Music, Apple TV, Apple Arcade, Apple Fitness+, Apple News+, Apple Pay and iCloud. These services provide digital content, payments, cloud storage and subscription offerings across the company's ecosystem of devices.

Founded in 1976, Apple is headquartered in Cupertino, California, and serves consumers, businesses, educational institutions and government customers worldwide.

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