Primecap Management Co. CA Purchases New Holdings in Apple Inc. $AAPL

Key Points

• Primecap Management acquired 1.76 million Apple shares during the second quarter, valued at approximately $509.5 million. Institutional investors collectively own 67.73% of Apple’s outstanding stock.
• Analysts maintain a generally positive outlook, with Apple carrying a consensus “Moderate Buy” rating and an average price target of $340.14; recent earnings also exceeded expectations, with revenue rising 16.4% year over year.
• Apple’s strong iPhone 18 demand and rising stock momentum are offset by risks including higher component costs, elevated valuation, AI competition, and ongoing legal and product-related issues.

Primecap Management Co. CA acquired a new stake in Apple Inc. (NASDAQ:AAPL - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 1,760,880 shares of the iPhone maker's stock, valued at approximately $509,528,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in AAPL. Legal & General Group Plc acquired a new stake in shares of Apple in the 2nd quarter valued at approximately $30,443,242,000. Deutsche Bank AG acquired a new position in shares of Apple in the 2nd quarter valued at $13,658,359,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Apple in the 2nd quarter valued at $10,588,946,000. Diamant Asset Management Inc. increased its position in shares of Apple by 24,974.3% in the 1st quarter. Diamant Asset Management Inc. now owns 26,614,323 shares of the iPhone maker's stock valued at $6,754,449,000 after buying an additional 26,508,181 shares in the last quarter. Finally, Canada Pension Plan Investment Board bought a new stake in shares of Apple in the 2nd quarter valued at $7,665,140,000. Institutional investors own 67.73% of the company's stock.

Insiders Place Their Bets

In other Apple news, SVP Jennifer Newstead sold 2,399 shares of the company's stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $340.06, for a total value of $815,803.94. Following the sale, the senior vice president owned 44,391 shares in the company, valued at $15,095,603.46. This represents a 5.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders sold a total of 11,031 shares of company stock worth $3,535,759 over the last 90 days. 0.06% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

AAPL has been the topic of a number of research reports. Rosenblatt Securities reaffirmed a "neutral" rating and issued a $303.00 price target on shares of Apple in a research note on Thursday, September 10th. Phillip Securities raised their price objective on shares of Apple from $290.00 to $300.00 and gave the stock a "neutral" rating in a report on Monday, September 14th. Rothschild & Co Redburn set a $400.00 price objective on shares of Apple and gave the company a "buy" rating in a research report on Monday, August 17th. CICC Research upped their target price on shares of Apple from $310.00 to $340.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 4th. Finally, The Goldman Sachs Group started coverage on Apple in a report on Monday, August 17th. They set a "buy" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $340.14.

More Apple News

Here are the key news stories impacting Apple this week:

• Positive Sentiment: iPhone 18 demand remains encouraging. Long lines in India and strong interest in the iPhone 18 Pro and Pro Max suggest Apple’s premium pricing is holding up in an important growth market. Evercore ISI raised its price target to $380 from $365 while maintaining an outperform rating. Apple iPhone demand in India
• Positive Sentiment: Momentum and technical positioning remain supportive. AAPL has gained roughly 10% over the past month and is approaching a potential buy point, helping sustain investor interest. Bank of America and JPMorgan have reiterated bullish ratings, while several analysts maintain targets above the current trading range. Apple stock approaches buy point
• Neutral Sentiment: Apple is expanding its product ecosystem. The company plans a refreshed HomePod mini, while reports suggest it may develop its own AI server chips. These initiatives could support future ecosystem engagement and infrastructure efficiency, but they are not yet material earnings drivers. Apple to release new HomePod mini
• Negative Sentiment: Rising component costs could pressure margins. Bernstein warned that surging memory and other smartphone component costs may weigh on gross margins and earnings in the December quarter, particularly as Apple introduces more expensive iPhones. Apple’s expensive new iPhones and margins
• Negative Sentiment: Valuation and AI execution remain key risks. At nearly $5 trillion in market value and about 38–39 times earnings, Apple requires continued earnings growth to justify its valuation. Analysts argue Alphabet’s Gemini ecosystem and monetization progress currently give it an edge in consumer AI, while Meta’s AI devices add competitive pressure. Alphabet versus Apple in consumer AI
• Negative Sentiment: Legal and product issues add uncertainty. A judge certified a class of payment card issuers in an Apple Pay antitrust lawsuit alleging improper fees. Separately, Apple is preparing a software fix for an iPhone 18 Pro reboot problem. Apple Pay class-action lawsuit

Apple Stock Performance

NASDAQ AAPL opened at $341.07 on Friday. The company has a current ratio of 1.00, a quick ratio of 0.93 and a debt-to-equity ratio of 0.66. The firm's fifty day moving average price is $321.56 and its two-hundred day moving average price is $297.37. Apple Inc. has a 1 year low of $243.42 and a 1 year high of $345.34. The firm has a market capitalization of $4.98 trillion, a P/E ratio of 39.11, a price-to-earnings-growth ratio of 2.96 and a beta of 1.08.

Apple (NASDAQ:AAPL - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The iPhone maker reported $2.02 earnings per share for the quarter, topping the consensus estimate of $1.89 by $0.13. The company had revenue of $109.42 billion for the quarter, compared to analyst estimates of $109.04 billion. Apple had a net margin of 27.62% and a return on equity of 135.46%. Apple's revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period in the previous year, the business earned $1.57 EPS. As a group, research analysts anticipate that Apple Inc. will post 8.74 EPS for the current year.

Apple Announces Dividend

The firm 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. The ex-dividend date was Monday, August 10th. This represents a $1.08 dividend on an annualized basis and a yield of 0.3%. Apple's dividend payout ratio (DPR) is presently 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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