Apple (NASDAQ:AAPL) Shares Gap Down on Analyst Downgrade

Shares of Apple Inc. (NASDAQ:AAPL) gapped down before the market opened on Friday after Morgan Stanley lowered their price target on the stock from $364.00 to $360.00. The stock had previously closed at $333.43, but opened at $304.81. Morgan Stanley currently has an overweight rating on the stock. Apple shares last traded at $302.7060, with a volume of 30,264,670 shares.

A number of other research firms have also weighed in on AAPL. Citigroup reiterated a “buy” rating and issued a $365.00 target price (up from $315.00) on shares of Apple in a research note on Monday, July 13th. Wells Fargo & Company reissued an “overweight” rating and set a $350.00 target price on shares of Apple in a research note on Friday. Barclays restated an “underweight” rating and issued a $245.00 price target (down from $253.00) on shares of Apple in a report on Friday. Robert W. Baird raised their price target on shares of Apple from $310.00 to $330.00 and gave the stock an “outperform” rating in a research note on Friday, July 24th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Apple in a report on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $329.74.

Insider Buying and Selling at Apple

In other news, insider Ben Borders sold 116 shares of the stock in a transaction that occurred 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 transaction, the insider directly owned 38,713 shares in the company, valued at approximately $11,425,754.82. This trade represents a 0.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.06% of the company’s stock.

Apple News Roundup

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple reported a record June quarter, with revenue of $109.4 billion, up 16% year over year, and diluted EPS of $2.02, up 29%. Results exceeded consensus estimates. Apple reports third quarter results
• Positive Sentiment: iPhone revenue surged 22% to $54.3 billion, while Mac revenue rose 29% to $10.4 billion, demonstrating resilient demand even as Apple has raised prices on some products. Apple revenue and profits beat expectations
• Positive Sentiment: Apple’s active installed base reached a record, and management highlighted long-term opportunities in consumer AI, including a more capable Siri and potential paid AI features. Several analysts maintained Buy or Overweight ratings, with targets as high as $365. Apple’s hybrid AI strategy
• Neutral Sentiment: Apple declared a quarterly dividend of $0.27 per share, payable August 13 to shareholders of record August 10. The company is also launching a U.S. leasing program that could encourage more frequent device upgrades.
• Negative Sentiment: Fourth-quarter revenue guidance of $111.7 billion to $113.7 billion was below the roughly $114.3 billion consensus estimate. Management warned that “very significant” supply constraints would affect iPhones, Macs and iPads, while CEO Tim Cook described memory-price pressure as a “hundred-year flood.” Apple slides as supply snags cloud outlook
• Negative Sentiment: Investors are concerned that rising memory costs will pressure margins and that tariff refunds, which added approximately $0.11 to quarterly EPS and benefited gross margin, will not recur. Apple is evaluating alternatives, including possible product-price increases.
• Negative Sentiment: Services revenue reached a record $30.7 billion but missed expectations, affected by foreign-exchange headwinds, weaker gaming activity and App Store changes. China performance also disappointed, adding to concerns about future growth. Apple services growth concerns
• Negative Sentiment: At approximately 40 times earnings after a sharp rally and a $5 trillion market capitalization, AAPL’s valuation leaves less room for execution or guidance disappointments. Tim Cook’s planned September departure also adds leadership-transition uncertainty.

Hedge Funds Weigh In On Apple

A number of large investors have recently bought and sold shares of the business. Lifetime Wealth Management P.C. purchased a new stake in shares of Apple during the fourth quarter valued at about $41,000. ROSS JOHNSON & Associates LLC boosted its holdings in shares of Apple by 1,800.0% in the 1st quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker’s stock valued at $42,000 after buying an additional 180 shares in the last quarter. LSV Asset Management purchased a new position in shares of Apple in the 4th quarter worth approximately $65,000. Timmons Wealth Management LLC purchased a new position in shares of Apple in the 4th quarter worth approximately $69,000. Finally, Inspire Investing LLC bought a new position in shares of Apple during the 4th quarter worth approximately $76,000. Institutional investors own 67.73% of the company’s stock.

Apple Stock Performance

The firm’s 50 day moving average is $309.51 and its 200 day moving average is $281.25. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.02 and a current ratio of 1.07. The stock has a market cap of $4.44 trillion, a P/E ratio of 36.49, a price-to-earnings-growth ratio of 2.92 and a beta of 1.10.

Apple (NASDAQ:AAPL) last announced its earnings results on Thursday, July 30th. The iPhone maker reported $2.02 earnings per share for the quarter, beating the consensus estimate of $1.89 by $0.13. Apple had a net margin of 27.15% and a return on equity of 146.69%. The company had revenue of $109.42 billion during the quarter, compared to the consensus estimate of $109.04 billion. During the same period last year, the firm earned $1.57 earnings per share. Apple’s revenue was up 16.4% compared to the same quarter last year. Analysts anticipate that Apple Inc. will post 8.76 EPS for the current year.

Apple Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Monday, August 10th will be issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Monday, August 10th. Apple’s dividend payout ratio is currently 13.06%.

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.