VIRGINIA RETIREMENT SYSTEMS ET Al Purchases New Holdings in Apple Inc. $AAPL

Key Points

• Virginia Retirement Systems acquired 3.25 million Apple shares worth approximately $939 million, making AAPL its second-largest portfolio holding at 5.6%. Institutional investors collectively own 67.73% of the stock.
• Apple reported quarterly EPS of $2.02 and revenue of $109.42 billion, exceeding estimates, while analysts maintain a “Moderate Buy” consensus with an average target price of $340.02.
• Investor sentiment is mixed: potential growth from AI monetization and smart-home products contrasts with concerns over iPhone demand, Apple’s elevated valuation, margin pressure, and recent insider stock sales.

VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Apple Inc. (NASDAQ:AAPL - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 3,245,235 shares of the iPhone maker's stock, valued at approximately $939,041,000. Apple accounts for 5.6% of VIRGINIA RETIREMENT SYSTEMS ET Al's investment portfolio, making the stock its 2nd largest position.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Avenir Tech Ltd acquired a new position in Apple during the second quarter valued at $29,000. Longfellow Investment Management Co. LLC acquired a new stake in Apple during the 2nd quarter worth about $30,000. Lifetime Wealth Management P.C. acquired a new stake in Apple during the 4th quarter worth about $41,000. ABS Investment Management LLC purchased a new position in Apple during the 2nd quarter valued at about $376,168,000. Finally, Basso Capital Management L.P. purchased a new position in Apple during the 4th quarter valued at about $88,000. 67.73% of the stock is currently owned by hedge funds and other institutional investors.

Apple News Roundup

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

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on AAPL shares. Barclays reissued an "underweight" rating and set a $245.00 target price (down from $253.00) on shares of Apple in a research note on Friday, July 31st. HSBC reiterated a "buy" rating and set a $366.00 price objective on shares of Apple in a report on Tuesday, September 8th. Citic Securities boosted their target price on Apple from $300.00 to $349.00 in a research note on Thursday, August 6th. Raymond James Financial reaffirmed a "market perform" rating on shares of Apple in a research report on Friday, July 31st. Finally, DZ Bank downgraded Apple from a "buy" rating to a "hold" rating and set a $310.00 price target for the company. in a research note on Tuesday, August 4th. One 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 assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $340.02.

Apple Stock Performance

Shares of AAPL opened at $336.64 on Friday. The company has a market capitalization of $4.91 trillion, a PE ratio of 38.61, a price-to-earnings-growth ratio of 2.71 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. Apple Inc. has a one year low of $243.42 and a one year high of $345.34. The company's fifty day moving average price is $322.61 and its 200 day moving average price is $302.99.

Apple (NASDAQ:AAPL - Get Free Report) last released its quarterly 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. The company had revenue of $109.42 billion during the quarter, compared to analysts' expectations of $109.04 billion. Apple had a net margin of 27.62% and a return on equity of 135.46%. The business's quarterly revenue was up 16.4% compared to the same quarter last year. During the same period in the prior year, the company earned $1.57 earnings per share. As a group, analysts expect that Apple Inc. will post 8.75 earnings per share for the current year.

Apple Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Monday, August 10th were given a $0.27 dividend. This represents a $1.08 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Monday, August 10th. Apple's payout ratio is currently 12.39%.

Insiders Place Their Bets

In related news, insider Timothy D. Cook sold 191,753 shares of the business's stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $332.96, for a total transaction of $63,846,078.88. Following the transaction, the insider owned 3,264,168 shares of the company's stock, valued at approximately $1,086,837,377.28. The trade was a 5.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Jennifer Newstead sold 2,399 shares of the company's stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $336.18, for a total transaction of $806,495.82. Following the transaction, the senior vice president owned 41,992 shares of the company's stock, valued at approximately $14,116,870.56. The trade was a 5.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 279,383 shares of company stock valued at $92,912,517 in the last three months. 0.06% of the stock is owned by corporate insiders.

About Apple

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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