Investors Buy Apple (AAPL) on Weakness Following Analyst Downgrade

Investors purchased shares of Apple Inc. (NASDAQ:AAPL) on weakness during trading hours on Monday after Rosenblatt Securities downgraded the stock to a hold rating. $3,524.17 million flowed into the stock on the tick-up and $3,089.05 million flowed out of the stock on the tick-down, for a money net flow of $435.12 million into the stock. Of all equities tracked, Apple had the highest net in-flow for the day. Apple traded down ($5.89) for the day and closed at $201.59

A number of other brokerages have also recently weighed in on AAPL. Tigress Financial restated a “buy” rating on shares of Apple in a research note on Thursday, August 30th. Robert W. Baird set a $230.00 price objective on shares of Apple and gave the company a “buy” rating in a research note on Tuesday, September 4th. New Street Research reiterated a “sell” rating on shares of Apple in a research report on Tuesday, September 18th. Needham & Company LLC boosted their price target on shares of Apple from $220.00 to $260.00 and gave the stock a “buy” rating in a research report on Thursday, September 13th. Finally, Citigroup dropped their price target on shares of Apple from $265.00 to $240.00 and set a “buy” rating on the stock in a research report on Friday. Three equities research analysts have rated the stock with a sell rating, twenty have assigned a hold rating and twenty-eight have given a buy rating to the stock. Apple has an average rating of “Hold” and an average price target of $223.60.

In related news, COO Jeffrey E. Williams sold 15,652 shares of Apple stock in a transaction dated Wednesday, August 8th. The stock was sold at an average price of $206.86, for a total value of $3,237,772.72. Following the transaction, the chief operating officer now owns 122,837 shares of the company’s stock, valued at approximately $25,410,061.82. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Angela J. Ahrendts sold 25,000 shares of Apple stock in a transaction dated Wednesday, October 3rd. The shares were sold at an average price of $232.66, for a total value of $5,816,500.00. Following the transaction, the senior vice president now directly owns 105,538 shares in the company, valued at approximately $24,554,471.08. The disclosure for this sale can be found here. Insiders sold a total of 544,185 shares of company stock worth $120,312,613 in the last three months. 0.06% of the stock is currently owned by company insiders.

Large investors have recently added to or reduced their stakes in the business. FMR LLC lifted its holdings in shares of Apple by 3.0% during the 2nd quarter. FMR LLC now owns 103,652,293 shares of the iPhone maker’s stock valued at $19,187,075,000 after buying an additional 3,019,688 shares during the last quarter. Summit Trail Advisors LLC lifted its holdings in shares of Apple by 17,669.4% during the 1st quarter. Summit Trail Advisors LLC now owns 20,180,694 shares of the iPhone maker’s stock valued at $20,181,000 after buying an additional 20,067,124 shares during the last quarter. Schwab Charles Investment Management Inc. lifted its holdings in shares of Apple by 1.1% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 19,817,792 shares of the iPhone maker’s stock valued at $3,668,472,000 after buying an additional 207,520 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. lifted its holdings in shares of Apple by 6.5% during the 2nd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 17,008,496 shares of the iPhone maker’s stock valued at $3,148,443,000 after buying an additional 1,030,981 shares during the last quarter. Finally, Swiss National Bank lifted its holdings in shares of Apple by 1.8% during the 2nd quarter. Swiss National Bank now owns 16,874,216 shares of the iPhone maker’s stock valued at $3,123,586,000 after buying an additional 304,600 shares during the last quarter. 58.44% of the stock is currently owned by institutional investors.

The firm has a market cap of $1,019.79 billion, a PE ratio of 16.93, a PEG ratio of 1.48 and a beta of 1.26. The company has a quick ratio of 1.09, a current ratio of 1.12 and a debt-to-equity ratio of 0.87.

Apple (NASDAQ:AAPL) last announced its quarterly earnings results on Thursday, November 1st. The iPhone maker reported $2.91 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.78 by $0.13. The business had revenue of $62.90 billion during the quarter, compared to analyst estimates of $61.55 billion. Apple had a return on equity of 48.68% and a net margin of 22.41%. The firm’s revenue was up 19.6% on a year-over-year basis. During the same period in the previous year, the company earned $2.07 EPS. Equities research analysts expect that Apple Inc. will post 13.48 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 15th. Stockholders of record on Monday, November 12th will be issued a dividend of $0.73 per share. The ex-dividend date of this dividend is Thursday, November 8th. This represents a $2.92 annualized dividend and a dividend yield of 1.45%. Apple’s dividend payout ratio is 24.52%.

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Apple Company Profile (NASDAQ:AAPL)

Apple Inc designs, manufactures, and markets mobile communication and media devices, and personal computers to consumers, and small and mid-sized businesses; and education, enterprise, and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications.

Further Reading: What is a closed-end mutual fund (CEF)?

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