Apple (NASDAQ:AAPL) Shares Down 2.5% - Here's Why

Apple Inc. (NASDAQ:AAPL) saw its shares decline by 2.5% on Thursday, reaching a low of $231.16 before closing at $231.96. During the mid-day trading session, about 16,430,465 shares changed hands, reflecting a significant drop of 61% from the average daily trading volume of 42,383,129 shares. The previous closing price stood at $237.87.

Analyst Opinions on AAPL

Various analysts have recently shared their views on Apple’s stock performance. New Street Research maintains a "neutral" rating with a price target of $225.00. Conversely, Moffett Nathanson has downgraded their position, giving Apple a "sell" rating and a revised price target of $188.00, down from $202.00. On a more positive note, Rosenblatt Securities increased their target from $261.00 to $262.00 and rated the stock as a "buy." Piper Sandler has also reiterated a "neutral" rating with a price objective set at $225.00. Meanwhile, Bank of America reaffirmed a "buy" rating with a target of $256.00. Overall, 3 analysts have issued a sell rating, 9 have a hold rating, 23 have a buy rating, and 1 has a strong buy rating, resulting in an average rating of "Moderate Buy" and a consensus target price of $239.85 according to MarketBeat.

Key Financial Metrics

Apple currently holds a market capitalization of $3.48 trillion, with a price-to-earnings (P/E) ratio of 37.83 and a P/E to growth (P/E/G) ratio of 2.32. The company's beta is 1.20. Current ratios indicate a position of 0.87, quick ratios at 0.83, and a debt-to-equity ratio of 1.51. As for moving averages, the stock has a 50-day average price of $240.95 and a 200-day average of $230.56.

Earnings Report Highlights

In the latest earnings announcement released on October 31, Apple reported earnings per share (EPS) of $1.64, surpassing the expected $1.60 by $0.04. The company generated revenues of $94.93 billion, exceeding analyst forecasts of $94.52 billion. Apple's return on equity stood impressively at 152.94%, with a net margin of 23.97%. Notably, this quarterly revenue represented a year-over-year increase of 6.1%, up from $1.46 EPS from the same period last year. Analysts predict that Apple Inc. will achieve an EPS of 7.43 for the current fiscal year.

Dividend Declaration

Additionally, Apple declared a quarterly dividend, which shareholders received on November 14. The dividend amount was $0.25 per share and is part of an annual dividend, equating to $1.00 with a yield of 0.43%. The dividend payout ratio is currently at 16.45%.

Insider Selling Activity

In related news, Apple’s Chief Operating Officer, Jeffrey E. Williams, sold 100,000 shares on December 16 at an average price of $249.97, totaling approximately $25 million. Post-transaction, Williams retains 389,944 shares valued at around $97.47 million. This sale marks a 20.41% reduction in his holdings. Another insider, Chris Kondo, sold 4,130 shares on November 18 at an average price of $228.87, amounting to about $945,233. This transfer resulted in a 21.13% decrease in Kondo's ownership, leaving him with 15,419 shares worth nearly $3.53 million. Currently, company insiders hold only 0.06% of the stock.

Institutional Investments in Apple

Recent changes in holdings among institutional investors have also been noteworthy. Bull Oak Capital LLC has increased its stake in Apple by an impressive 252.3% during the third quarter, now owning 155 shares valued at $36,000 after buying an additional 111 shares. Hershey Financial Advisers LLC entered a new investment position worth approximately $42,000 in the second quarter. Christopher J. Hasenberg Inc boosted its holdings by 88.9%, now totaling 306 shares worth $69,000 after purchasing 144 more shares last quarter. Other firms such as SPX Gestao de Recursos Ltda and Teachers Insurance & Annuity Association of America have also gained new positions, estimated at around $71,000 and $77,000 respectively. Institutional and hedge fund ownership now stands at 67.73%.

About Apple Inc.

Apple Inc. is a global leader in designing, manufacturing, and marketing a range of consumer electronics, personal computers, and software. The company’s core products include the iPhone smartphones, Mac personal computers, iPads, wearables like the Apple Watch and AirPods, as well as home accessories such as Apple TV and HomePod.

Conclusion

With a notable drop in stock price and varying analyst opinions, investors may find themselves considering whether now is the right time to sell or hold their shares in Apple. Keep an eye on future developments to make informed investment decisions.

Apple, Investing, Stocks