Compass Financial Management LLC Buys New Position in Apple Inc. $AAPL

Key Points

• Compass Financial Management acquired 86,448 Apple shares worth approximately $25.9 million, making Apple its third-largest holding at 3% of the portfolio. Institutional investors collectively own 67.73% of Apple’s stock.
• Analyst sentiment remains positive, with Apple carrying a “Moderate Buy” consensus rating and an average price target of $340.02; targets range from $303 to $355.
• Apple reported quarterly earnings of $2.02 per share and revenue of $109.42 billion, exceeding estimates, while revenue rose 16.4% year over year. Shares opened at $336.67, near the company’s 52-week high.

Compass Financial Management LLC acquired a new position in shares of Apple Inc. (NASDAQ:AAPL - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 86,448 shares of the iPhone maker's stock, valued at approximately $25,894,000. Apple comprises about 3.0% of Compass Financial Management LLC's portfolio, making the stock its 3rd largest holding.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Berkshire Hathaway Inc purchased a new stake in Apple in the second quarter worth approximately $65,950,297,000. Bank of America Corp DE bought a new position in Apple during the second quarter valued at approximately $36,986,090,000. Legal & General Group Plc purchased a new position in shares of Apple during the second quarter worth approximately $30,443,242,000. Nuveen LLC raised its stake in shares of Apple by 3.8% during the fourth quarter. Nuveen LLC now owns 75,000,920 shares of the iPhone maker's stock worth $20,389,750,000 after acquiring an additional 2,725,121 shares in the last quarter. Finally, Amundi lifted its holdings in shares of Apple by 23.2% in the 1st quarter. Amundi now owns 73,082,616 shares of the iPhone maker's stock worth $18,547,637,000 after acquiring an additional 13,780,080 shares during the last quarter. 67.73% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on AAPL shares. Rosenblatt Securities reiterated a "neutral" rating and issued a $303.00 target price on shares of Apple in a research report on Thursday, September 10th. Citigroup restated a "buy" rating on shares of Apple in a research report on Thursday, September 10th. Robert W. Baird raised their price objective on Apple from $310.00 to $330.00 and gave the company an "outperform" rating in a research note on Friday, July 24th. JPMorgan Chase & Co. reiterated a "buy" rating on shares of Apple in a report on Monday, September 21st. Finally, Morgan Stanley set a $355.00 target price on Apple and gave the company an "overweight" rating in a research note on Thursday, October 1st. One analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Apple currently has an average rating of "Moderate Buy" and an average price target of $340.02.

Apple Stock Up 0.9%

NASDAQ AAPL opened at $336.67 on Thursday. Apple Inc. has a 1 year low of $243.42 and a 1 year high of $345.34. The stock has a market capitalization of $4.91 trillion, a PE ratio of 38.61, a PEG ratio of 2.66 and a beta of 1.07. 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 business's 50-day moving average is $321.92 and its 200 day moving average is $302.11.

Apple (NASDAQ:AAPL - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The iPhone maker reported $2.02 earnings per share for the quarter, topping analysts' consensus estimates of $1.89 by $0.13. Apple had a return on equity of 135.46% and a net margin of 27.62%.The firm had revenue of $109.42 billion for the quarter, compared to analyst estimates of $109.04 billion. During the same period last year, the company earned $1.57 EPS. The business's quarterly revenue was up 16.4% compared to the same quarter last year. Sell-side analysts forecast that Apple Inc. will post 8.75 earnings per share for the current year.

Apple Dividend Announcement

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

Key Apple News

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple is reportedly partnering with LG Electronics to develop a smart-home lineup including a doorbell, smart lock, thermostat and other accessories tied to a new Apple home hub. The initiative could expand the HomeKit ecosystem, create new hardware and services revenue, and intensify competition with Amazon’s Ring and Google’s Nest. Apple partners with LG on smart-home devices
• Positive Sentiment: Apple’s App Store revenue growth reportedly rebounded to 5% in September after a weaker August. Continued Services momentum supports the company’s recurring-revenue profile, though investors are watching whether the improvement proves durable. Apple App Store growth rebounds
• Neutral Sentiment: CEO John Ternus sold 25,412 shares worth about $8.5 million to cover tax withholding tied to equity vesting. Because the transaction was tax-related rather than described as discretionary selling, it is unlikely to materially change the investment case, though it may create short-term headline pressure. Apple CEO stock sale
• Negative Sentiment: Morgan Stanley lowered its Apple price target to $355 despite raising revenue forecasts, citing softer iPhone pricing and higher memory-chip costs that could compress gross margins. The target is only modestly above recent trading levels, limiting perceived upside. Morgan Stanley cuts Apple price target
• Negative Sentiment: Several valuation comparisons highlight that investors pay substantially more for each dollar of Apple’s earnings than for Nvidia’s, despite Nvidia’s stronger recent profitability. With AAPL trading at an elevated earnings multiple, the stock may require sustained iPhone, Services and AI growth to justify its premium. Nvidia versus Apple valuation comparison

Insider Activity at Apple

In other Apple news, SVP Deirdre O'brien sold 46,389 shares of the firm's stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $333.42, for a total value of $15,467,020.38. Following the completion of the sale, the senior vice president directly owned 136,810 shares in the company, valued at $45,615,190.20. This trade represents a 25.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Timothy D. Cook sold 191,753 shares of Apple stock in a transaction that occurred 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 sale, the insider directly owned 3,264,168 shares in the company, valued at approximately $1,086,837,377.28. The trade was a 5.55% 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. Over the last quarter, insiders sold 276,984 shares of company stock worth $92,116,025. 0.06% of the stock is currently owned by company insiders.

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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