Apple (NASDAQ:AAPL) Trading Up 2% – Should You Buy?

Apple Inc. (NASDAQ:AAPL) shares traded up 2% during trading on Tuesday . The stock traded as high as $310.42 and last traded at $309.4640. Approximately 66,624,360 shares traded hands during trading, an increase of 30% from the average daily volume of 51,426,332 shares. The stock had previously closed at $303.42.

Apple News Summary

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple reported its best June quarter ever, with revenue rising 16% year over year to approximately $109.4 billion and earnings of $2.02 per share, exceeding analyst expectations. iPhone demand and sales in India were highlighted as areas of strength. Tim Cook’s Last Quarter as CEO Was Apple’s Best June Quarter Ever
• Positive Sentiment: Investors are looking toward Apple’s expected September product event, including potential new iPhone models and a possible foldable iPhone, as catalysts that could revive growth expectations. Everything Apple Is Expected to Announce in September
• Neutral Sentiment: Tim Cook is preparing to step down as chief executive, creating an important succession question. Although his final quarter was a record, the market is assessing whether new leadership can sustain Apple’s growth, innovation and execution.
• Negative Sentiment: Services revenue grew about 12%, its slowest pace among Apple’s major businesses, while the company warned that rising memory costs could pressure margins and raise product expenses. Reports also indicate Apple’s search for cheaper memory supplies has encountered difficulties. A Chinese Investment Firm Just Downgraded Apple
• Negative Sentiment: Several analysts and investment firms downgraded AAPL to Hold or Moderate Sell, citing slower services growth, higher memory costs and a demanding valuation. OpenAI also asked a judge to dismiss Apple’s trade-secrets lawsuit, prolonging legal uncertainty and highlighting investor concerns about Apple’s ability to compete for artificial-intelligence talent. OpenAI Asks US Judge to Dismiss Apple’s Trade Secrets Case

Analyst Ratings Changes

AAPL has been the topic of several recent research reports. DA Davidson reaffirmed a “neutral” rating and set a $270.00 target price on shares of Apple in a research note on Friday, July 31st. Monness Crespi & Hardt raised their price target on shares of Apple from $315.00 to $335.00 and gave the stock a “buy” rating in a research note on Friday, May 1st. KeyCorp restated an “underweight” rating and set a $250.00 price target on shares of Apple in a research report on Tuesday, July 28th. Morgan Stanley dropped their price objective on shares of Apple from $364.00 to $360.00 and set an “overweight” rating for the company in a research note on Friday, July 31st. Finally, UBS Group reissued a “neutral” rating on shares of Apple in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $330.44.

Apple Stock Up 0.5%

The stock has a market capitalization of $4.56 trillion, a price-to-earnings ratio of 35.83, a PEG ratio of 2.66 and a beta of 1.09. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.00 and a quick ratio of 0.93. The business has a fifty day moving average of $309.43 and a 200 day moving average of $282.62.

Apple (NASDAQ:AAPL) last posted its earnings results on Thursday, July 30th. The iPhone maker reported $2.02 EPS for the quarter, beating analysts’ consensus estimates of $1.89 by $0.13. The company had revenue of $109.42 billion for the quarter, compared to the consensus estimate of $109.04 billion. Apple had a return on equity of 135.46% and a net margin of 27.62%.The company’s revenue for the quarter was up 16.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.57 earnings per share. As a group, equities analysts predict that Apple Inc. will post 8.74 earnings per share for the current year.

Apple Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Shareholders of record on Monday, August 10th will be given a dividend of $0.27 per share. The ex-dividend date is Monday, August 10th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 0.3%. Apple’s dividend payout ratio (DPR) is currently 12.39%.

Insider Buying and Selling at Apple

In other news, insider Ben Borders sold 1,274 shares of Apple stock in a transaction on Friday, May 8th. The stock was sold at an average price of $290.00, for a total value of $369,460.00. Following the completion of the sale, the insider directly owned 38,713 shares of the company’s stock, valued at approximately $11,226,770. The trade was a 3.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.06% of the company’s stock.

Hedge Funds Weigh In On Apple

Institutional investors have recently bought and sold shares of the company. Rainier Family Wealth Inc. increased its stake in Apple by 14.1% during the 1st quarter. Rainier Family Wealth Inc. now owns 24,386 shares of the iPhone maker’s stock worth $6,189,000 after purchasing an additional 3,014 shares in the last quarter. Eaton Cambridge Inc. grew its holdings in shares of Apple by 21.3% during the first quarter. Eaton Cambridge Inc. now owns 13,968 shares of the iPhone maker’s stock worth $3,545,000 after buying an additional 2,450 shares in the last quarter. Torren Management LLC acquired a new stake in Apple in the 4th quarter valued at approximately $1,178,000. Summit Wealth Partners LLC lifted its stake in Apple by 108.3% in the 1st quarter. Summit Wealth Partners LLC now owns 34,989 shares of the iPhone maker’s stock valued at $8,880,000 after acquiring an additional 18,188 shares in the last quarter. Finally, Adventist Health System Sunbelt Healthcare Corp bought a new stake in Apple in the 4th quarter valued at approximately $105,482,000. 67.73% of the stock is owned by institutional investors and hedge funds.

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.