Apple (NASDAQ:AAPL) Shares Up 2.3% on Better-Than-Expected Earnings

Apple Inc. (NASDAQ:AAPL)’s share price rose 2.3% during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $224.43 and last traded at $223.28. Approximately 32,617,539 shares traded hands during trading, a decline of 48% from the average daily volume of 63,090,781 shares. The stock had previously closed at $218.36.

The iPhone maker reported $1.40 EPS for the quarter, beating the consensus estimate of $1.34 by $0.06. The company had revenue of $85.78 billion for the quarter, compared to analyst estimates of $84.43 billion. Apple had a net margin of 26.31% and a return on equity of 148.33%. The firm’s revenue was up 4.9% on a year-over-year basis. During the same period in the prior year, the company earned $1.26 earnings per share.

Apple declared that its Board of Directors has authorized a stock buyback program on Thursday, May 2nd that allows the company to buyback $110.00 billion in shares. This buyback authorization allows the iPhone maker to repurchase up to 3.9% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Analyst Ratings Changes

Several brokerages recently commented on AAPL. 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 report on Wednesday, July 10th. Bank of America restated a “buy” rating and set a $230.00 price target on shares of Apple in a research report on Tuesday, July 9th. JPMorgan Chase & Co. boosted their price objective on Apple from $245.00 to $265.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 24th. Morgan Stanley lifted their target price on shares of Apple from $216.00 to $273.00 and gave the stock an “overweight” rating in a research note on Monday, July 15th. Finally, Tigress Financial increased their price target on shares of Apple from $240.00 to $245.00 and gave the company a “strong-buy” rating in a research note on Thursday, May 30th. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating, twenty-four have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $234.26.

Insider Buying and Selling at Apple

In related news, insider Chris Kondo sold 4,999 shares of the company’s stock in a transaction on Wednesday, May 15th. The shares were sold at an average price of $190.40, for a total value of $951,809.60. Following the sale, the insider now directly owns 29,278 shares of the company’s stock, valued at $5,574,531.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In other Apple news, insider Chris Kondo sold 4,999 shares of the stock in a transaction on Wednesday, May 15th. The stock was sold at an average price of $190.40, for a total value of $951,809.60. Following the sale, the insider now directly owns 29,278 shares of the company’s stock, valued at $5,574,531.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Arthur D. Levinson sold 75,000 shares of the business’s stock in a transaction that occurred on Thursday, May 30th. The shares were sold at an average price of $191.58, for a total transaction of $14,368,500.00. Following the sale, the director now owns 4,359,576 shares in the company, valued at approximately $835,207,570.08. The disclosure for this sale can be found here. 0.06% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Christopher J. Hasenberg Inc acquired a new stake in Apple during the first quarter worth $35,000. Fidelis Capital Partners LLC lifted its position in Apple by 17.9% in the 1st quarter. Fidelis Capital Partners LLC now owns 206,455 shares of the iPhone maker’s stock valued at $35,000 after acquiring an additional 31,278 shares in the last quarter. A.P. Gilfoyle & Co. L.P. bought a new position in shares of Apple during the fourth quarter worth about $39,000. Gilfoyle & Co LLC boosted its position in Apple by 118.0% during the 4th quarter. Gilfoyle & Co LLC now owns 218 shares of the iPhone maker’s stock worth $40,000 after acquiring an additional 118 shares during the last quarter. Finally, University of Texas Texas AM Investment Managment Co. boosted its holdings in shares of Apple by 657.1% in the 4th quarter. University of Texas Texas AM Investment Managment Co. now owns 424 shares of the iPhone maker’s stock valued at $82,000 after buying an additional 368 shares during the last quarter. Institutional investors and hedge funds own 60.41% of the company’s stock.

Apple Stock Up 1.9 %

The firm has a market capitalization of $3.41 trillion, a P/E ratio of 34.72, a PEG ratio of 2.64 and a beta of 1.24. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.04 and a quick ratio of 0.99. The firm’s 50 day moving average is $213.16 and its two-hundred day moving average is $191.00.

About Apple

Apple Inc designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod.