Apple (NASDAQ:AAPL) Trading 1.1% Higher - Should You Buy?

Key Points

• Apple shares rose 1.1% to $313.45, while trading volume was 34% below the average. The stock carries a “Moderate Buy” consensus rating and an average analyst price target of $330.53.
• Upcoming product announcements are key potential catalysts, including the September 9 iPhone launch event, new Apple Watches and a possible foldable iPhone. IDC reportedly expects more than 17 million foldable iPhone shipments by 2027.
• Apple recently exceeded quarterly earnings and revenue expectations, with EPS of $2.02 and revenue of $109.42 billion, up 16.4% year over year. New AI-focused Mac models and strong analyst support could further drive demand, though the stock trades at a high P/E ratio of 35.95.

Apple Inc. (NASDAQ:AAPL - Get Free Report)'s stock price traded up 1.1% during mid-day trading on Wednesday . The company traded as high as $315.43 and last traded at $313.45. Approximately 33,404,507 shares changed hands during mid-day trading, a decline of 34% from the average daily volume of 50,335,809 shares. The stock had previously closed at $309.90.

Key Stories Impacting Apple

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple scheduled its major iPhone launch event for September 9, the first such event under CEO John Ternus. Analysts expect new iPhones and Apple Watches, with a potential foldable iPhone serving as a major catalyst. Apple sets Sept. 9 date for next iPhone launch event
• Positive Sentiment: Apple’s foldable strategy is generating significant interest, with IDC reportedly forecasting more than 17 million foldable iPhone shipments by 2027. A successful launch could reinvigorate iPhone growth and expand Apple’s premium-device market. Apple Seen to Ship Over 17 Million Foldable iPhones by 2027
• Positive Sentiment: New Mac mini and Mac Studio models powered by the M6 and M5 Ultra chips are aimed at AI developers and support substantially greater on-device computing capacity. This strengthens Apple’s capital-light AI strategy and could boost Mac demand, developer adoption and services opportunities. Apple announces new Mac Mini and Mac Studio models with AI upgrades
• Positive Sentiment: Evercore ISI reiterated its Outperform rating and maintained a $365 price target, saying higher Mac mini pricing is justified by the upgraded capabilities. Apple Stock Reiterated as Outperform

Wall Street Analysts Forecast Growth

AAPL has been the subject of a number of recent analyst reports. Piper Sandler began coverage on Apple in a report on Monday, August 17th. They set an "overweight" rating for the company. The Goldman Sachs Group started coverage on Apple in a report on Monday, August 17th. They set a "buy" rating on the stock. Rosenblatt Securities lifted their price target on Apple from $276.00 to $300.00 and gave the company a "neutral" rating in a report on Friday, July 31st. Citigroup reiterated a "buy" rating and set a $365.00 price target (up from $315.00) on shares of Apple in a research report on Monday, July 13th. Finally, Robert W. Baird increased their price objective on shares of Apple from $310.00 to $330.00 and gave the stock an "outperform" rating in a report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, twelve have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $330.53.

Apple Trading Up 1.1%

The company has a quick ratio of 0.93, a current ratio of 1.00 and a debt-to-equity ratio of 0.66. The company has a market cap of $4.57 trillion, a P/E ratio of 35.95, a P/E/G ratio of 2.66 and a beta of 1.09. The business has a 50-day moving average price of $311.12 and a two-hundred day moving average price of $287.69.

Apple (NASDAQ:AAPL - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The iPhone maker reported $2.02 EPS 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 during the quarter, compared to analyst estimates of $109.04 billion. During the same period last year, the company earned $1.57 earnings per share. The company's revenue was up 16.4% on a year-over-year basis. On average, analysts predict that Apple Inc. will post 8.76 EPS for the current year.

Apple Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Monday, August 10th were paid a $0.27 dividend. The ex-dividend date of this dividend 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%.

Insiders Place Their Bets

In other Apple news, insider Ben Borders sold 116 shares of the company's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $295.14, for a total transaction of $34,236.24. Following the completion of the sale, the insider owned 38,713 shares in the company, valued at approximately $11,425,754.82. The trade was a 0.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Jennifer Newstead sold 1,439 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $307.49, for a total value of $442,478.11. Following the completion of the transaction, the senior vice president directly owned 38,668 shares in the company, valued at approximately $11,890,023.32. This trade represents a 3.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 2,994 shares of company stock valued at $919,567 in the last ninety days. Company insiders own 0.06% of the company's stock.

Institutional Trading of Apple

A number of hedge funds have recently modified their holdings of the company. Avenir Tech Ltd bought a new position in Apple in the second quarter valued at approximately $29,000. Longfellow Investment Management Co. LLC bought a new stake in Apple in the 2nd quarter valued at $30,000. Lifetime Wealth Management P.C. bought a new position in Apple during the 4th quarter worth about $41,000. ROSS JOHNSON & Associates LLC increased its holdings in Apple by 1,800.0% during the 1st quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker's stock worth $42,000 after purchasing an additional 180 shares in the last quarter. Finally, Timmons Wealth Management LLC acquired a new stake in shares of Apple in the 4th quarter valued at about $69,000. 67.73% of the stock is currently owned by institutional investors and hedge funds.

Apple Company Profile

Apple Inc NASDAQ: AAPL is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple's principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.

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