Capital Advantage Inc. Sells 1,501 Shares of Apple Inc. $AAPL

Key Points

• Capital Advantage Inc. reduced its Apple position by 2.8%, selling 1,501 shares and retaining 52,049 shares valued at approximately $15.1 million. Apple remains 1.8% of the firm’s portfolio and its 17th-largest holding.
• Apple has a “Moderate Buy” consensus rating from analysts, with an average price target of $340.02, although several brokerages recently downgraded the stock to “Hold” or “Neutral.”
• Apple’s latest quarter exceeded expectations, with revenue rising 16.4% year over year and EPS reaching $2.02, but investors face concerns about premium iPhone demand, valuation, margin pressure from memory costs and recent insider selling.

Capital Advantage Inc. decreased its holdings in shares of Apple Inc. (NASDAQ:AAPL - Free Report) by 2.8% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 52,049 shares of the iPhone maker's stock after selling 1,501 shares during the quarter. Apple comprises approximately 1.8% of Capital Advantage Inc.'s portfolio, making the stock its 17th biggest holding. Capital Advantage Inc.'s holdings in Apple were worth $15,061,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Berkshire Hathaway Inc purchased 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 position in Apple in the 2nd quarter worth $36,986,090,000. Legal & General Group Plc bought a new position in Apple in the 2nd quarter worth $30,443,242,000. Deutsche Bank AG purchased a new stake in shares of Apple in the 2nd quarter worth about $13,658,359,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Apple in the 2nd quarter worth about $10,588,946,000. Institutional investors own 67.73% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on AAPL. Deutsche Bank Aktiengesellschaft cut Apple from a "buy" rating to a "hold" rating in a research note on Monday, August 17th. DA Davidson reissued a "neutral" rating and set a $270.00 price target on shares of Apple in a research report on Wednesday, September 2nd. Seaport Research Partners lowered shares of Apple from a "buy" rating to a "neutral" rating in a report on Monday, August 17th. BTIG Research assumed coverage on shares of Apple in a report on Monday, August 17th. They issued a "neutral" rating for the company. Finally, DZ Bank cut shares of Apple from a "buy" rating to a "hold" rating and set a $310.00 target price on the stock. in a report on Tuesday, August 4th. One equities 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 issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $340.02.

Trending Headlines about 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 Performance

Shares of NASDAQ AAPL opened at $336.64 on Monday. Apple Inc. has a 1 year low of $243.42 and a 1 year high of $345.34. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.00 and a quick ratio of 0.93. The stock has a market cap of $4.91 trillion, a PE ratio of 38.61, a price-to-earnings-growth ratio of 2.68 and a beta of 1.07. The firm has a fifty day moving average price of $322.61 and a 200-day moving average price of $303.36.

Apple (NASDAQ:AAPL - Get Free Report) last issued its earnings results on Thursday, July 30th. The iPhone maker reported $2.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.89 by $0.13. The firm had revenue of $109.42 billion for the quarter, compared to analysts' expectations of $109.04 billion. Apple had a return on equity of 135.46% and a net margin of 27.62%. The business's revenue 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. Equities analysts anticipate that Apple Inc. will post 8.75 earnings per share for the current fiscal year.

Apple Dividend Announcement

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

Insider Activity

In related news, SVP Jennifer Newstead sold 2,399 shares of the firm's stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $332.01, for a total value of $796,491.99. Following the transaction, the senior vice president owned 39,593 shares of the company's stock, valued at $13,145,271.93. This trade represents a 5.71% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO John Ternus sold 25,412 shares of Apple stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $332.94, for a total transaction of $8,460,671.28. Following the sale, the chief executive officer owned 59,567 shares of the company's stock, valued at $19,832,236.98. The trade was a 29.90% decrease in their position. 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. Over the last quarter, insiders sold 279,383 shares of company stock valued at $92,912,517. Company insiders own 0.06% of the company's stock.

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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