Traders Buy High Volume of Apple Call Options (NASDAQ:AAPL)

Key Points

• Unusual options activity: Traders bought 1,026,010 Apple call options on Friday — about 13% above the average daily call volume, signaling elevated bullish interest.
• Earnings beat and shareholder actions: Apple reported $2.01 EPS vs. $1.92 expected and $111.18B revenue, gave strong forward guidance, and boosted shareholder returns by raising the quarterly dividend to $0.27 and adding roughly $100B to buybacks.
• Insider selling despite heavy institutional ownership: Insiders sold 96,485 shares worth about $24.6 million in the last three months, while institutional investors still own roughly 67.7% of the company.

Apple Inc. (NASDAQ:AAPL - Get Free Report) was the recipient of some unusual options trading activity on Friday. Traders purchased 1,026,010 call options on the stock. This represents an increase of 13% compared to the average daily volume of 906,937 call options.

Apple Price Performance

Shares of Apple stock traded up $12.57 during trading hours on Friday, reaching $283.92. 44,478,458 shares of the company's stock were exchanged, compared to its average volume of 46,735,332. Apple has a 1 year low of $193.25 and a 1 year high of $288.62. The company has a market capitalization of $4.17 trillion, a P/E ratio of 35.88, a price-to-earnings-growth ratio of 2.46 and a beta of 1.11. The business has a fifty day moving average of $260.73 and a two-hundred day moving average of $265.02. The company has a quick ratio of 0.94, a current ratio of 0.97 and a debt-to-equity ratio of 0.87.

Apple (NASDAQ:AAPL - Get Free Report) last released its earnings results on Thursday, April 30th. The iPhone maker reported $2.01 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.92 by $0.09. Apple had a net margin of 27.04% and a return on equity of 159.94%. The business had revenue of $111.18 billion during the quarter, compared to analyst estimates of $109.46 billion. During the same quarter in the prior year, the firm earned $1.65 earnings per share. The company's revenue for the quarter was up 16.6% compared to the same quarter last year. As a group, research analysts predict that Apple will post 8.52 earnings per share for the current fiscal year.

Apple Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 14th. Stockholders of record on Monday, May 11th will be issued a dividend of $0.27 per share. The ex-dividend date of this dividend is Monday, May 11th. This is a positive change from Apple's previous quarterly dividend of $0.26. This represents a $1.08 dividend on an annualized basis and a dividend yield of 0.4%. Apple's payout ratio is currently 13.15%.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Needham & Company LLC reissued a "hold" rating on shares of Apple in a report on Friday. KeyCorp reissued a "sector weight" rating on shares of Apple in a report on Thursday, March 12th. Phillip Securities raised shares of Apple from a "moderate sell" rating to a "hold" rating in a report on Sunday, February 1st. Morgan Stanley reissued an "overweight" rating and issued a $330.00 price target (up from $315.00) on shares of Apple in a report on Friday. Finally, Stephens set a $315.00 price target on shares of Apple in a report on Monday, January 26th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $304.03.

Insider Activity at Apple

In related news, CFO Kevan Parekh sold 1,534 shares of the business's stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $275.00, for a total value of $421,850.00. Following the completion of the transaction, the chief financial officer directly owned 13,366 shares in the company, valued at $3,675,650. The trade was a 10.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Deirdre O'brien sold 30,002 shares of the business's stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $255.35, for a total transaction of $7,661,010.70. Following the completion of the transaction, the senior vice president owned 136,810 shares of the company's stock, valued at approximately $34,934,433.50. This represents a 17.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 96,485 shares of company stock worth $24,594,845 in the last three months. Company insiders own 0.06% of the company's stock.

Institutional Investors Weigh In On Apple

A number of large investors have recently modified their holdings of the business. Reyes Financial Architecture Inc. increased its stake in shares of Apple by 0.4% during the third quarter. Reyes Financial Architecture Inc. now owns 9,898 shares of the iPhone maker's stock valued at $2,520,000 after buying an additional 37 shares during the period. WESPAC Advisors LLC increased its stake in shares of Apple by 0.3% during the fourth quarter. WESPAC Advisors LLC now owns 12,326 shares of the iPhone maker's stock valued at $3,351,000 after buying an additional 39 shares during the period. Interactive Financial Advisors Inc. increased its stake in shares of Apple by 4.0% during the fourth quarter. Interactive Financial Advisors Inc. now owns 1,051 shares of the iPhone maker's stock valued at $286,000 after buying an additional 40 shares during the period. Sugar Maple Asset Management LLC increased its stake in shares of Apple by 2.0% during the first quarter. Sugar Maple Asset Management LLC now owns 2,029 shares of the iPhone maker's stock valued at $515,000 after buying an additional 40 shares during the period. Finally, American Alpha Advisors LLC increased its stake in shares of Apple by 3.7% during the third quarter. American Alpha Advisors LLC now owns 1,151 shares of the iPhone maker's stock valued at $293,000 after buying an additional 41 shares during the period. Hedge funds and other institutional investors own 67.73% of the company's stock.

More Apple News

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Double beat on top and bottom lines: Apple reported $2.01 EPS and $111.18B revenue, topping estimates and showing broad product and services strength. Apple Stock Rises After Earnings Beat, Strong Guidance, Buyback, Dividend Hike
• Positive Sentiment: Exceptional forward guidance: Apple gave June‑quarter revenue guidance well above consensus (mid‑teens growth), which investors view as proof of sustained demand momentum. Apple (AAPL) Stock Surges 3% on Strong Earnings and Exceptional Forward Guidance
• Positive Sentiment: Big shareholder returns: management added roughly $100B to buybacks and raised the quarterly dividend, a direct boost to EPS per share and shareholder yield. Apple (AAPL) Stock: Q2 Earnings Beat Expectations with 17% Revenue Jump and $100B Buyback
• Positive Sentiment: Smooth CEO handoff reduces uncertainty: Apple introduced incoming CEO John Ternus on the call and emphasized continuity, which calmed some investor concerns about leadership risk. Apple Delivers: New CEO, Looking Ahead To WWDC
• Neutral Sentiment: Regulatory/reporting change possible: the SEC’s proposal to allow semiannual reporting advanced after White House review — could lower compliance costs but reduce disclosure cadence for investors. SEC Plan to Shift to Semiannual Reporting Advances After White House Review
• Neutral Sentiment: Mixed analyst action: several firms raised price targets and others kept “hold/neutral” calls — the upgrades support momentum but highlight differing views on valuation and the sustainability of growth. Apple (AAPL) Stock Pops on Q2 Beat – Top Analysts Raise Price Targets
• Negative Sentiment: Memory‑chip cost and supply headwinds: management warned rising memory prices and tight supplies could pressure margins and force pricing or contract changes — a near‑term margin risk. Apple CEO Tim Cook warns of extended memory crunch. 'We'll look at a range of options'
• Negative Sentiment: Valuation/watchers express caution: despite the beat, some analysts call the stock expensive or kept conservative ratings/targets below the current price — a reminder upside may be limited near-term. Apple: Great Earnings, Expensive Stock, Same Hold Rating

About Apple

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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