Apple (NASDAQ:AAPL) Shares Gap Up Following Strong Earnings

Apple Inc. (NASDAQ:AAPL) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $237.59, but opened at $247.19. Apple shares last traded at $242.12, with a volume of 14,807,085 shares changing hands.

The iPhone maker reported $2.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.36 by $0.04. Apple had a net margin of 23.97% and a return on equity of 152.94%.

Apple Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 13th. Investors of record on Monday, February 10th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 0.42%. The ex-dividend date of this dividend is Monday, February 10th. Apple’s dividend payout ratio is 16.45%.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. KeyCorp reiterated an “underweight” rating and set a $200.00 price objective on shares of Apple in a research report on Friday. Raymond James upped their price objective on shares of Apple to $250.00 and gave the stock a “buy” rating in a research report on Monday, January 20th. Piper Sandler reissued a “neutral” rating and set a $225.00 target price on shares of Apple in a report on Wednesday, October 9th. Wells Fargo & Company boosted their target price on shares of Apple to $275.00 and gave the stock a “buy” rating in a report on Monday, December 9th. Finally, Moffett Nathanson reissued a “sell” rating and set a $188.00 target price (down from $202.00) on shares of Apple in a report on Tuesday, January 7th. Four analysts have rated the stock with a sell rating, ten have given a hold rating, twenty-one have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $242.52.

Insider Activity

In related news, COO Jeffrey E. Williams sold 100,000 shares of the firm’s stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $249.97, for a total transaction of $24,997,000.00. Following the completion of the sale, the chief operating officer now owns 389,944 shares in the company, valued at approximately $97,474,301.68. This trade represents a 20.41 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Chris Kondo sold 4,130 shares of the firm’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $228.87, for a total transaction of $945,233.10. Following the sale, the insider now owns 15,419 shares of the company’s stock, valued at $3,528,946.53. This trade represents a 21.13 % decrease in their position. The disclosure for this sale can be found here. 0.06% of the stock is currently owned by corporate insiders.

Institutional Trading of Apple

Large investors have recently added to or reduced their stakes in the stock. Drystone LLC purchased a new stake in Apple during the fourth quarter worth about $25,000. Bull Oak Capital LLC increased its stake in shares of Apple by 252.3% in the third quarter. Bull Oak Capital LLC now owns 155 shares of the iPhone maker’s stock worth $36,000 after purchasing an additional 111 shares in the last quarter. Hershey Financial Advisers LLC purchased a new position in shares of Apple in the second quarter worth about $42,000. SPX Gestao de Recursos Ltda purchased a new position in shares of Apple in the third quarter worth about $71,000. Finally, Christopher J. Hasenberg Inc increased its stake in shares of Apple by 88.9% in the third quarter. Christopher J. Hasenberg Inc now owns 306 shares of the iPhone maker’s stock worth $69,000 after purchasing an additional 144 shares in the last quarter. Hedge funds and other institutional investors own 67.73% of the company’s stock.

Apple Price Performance

The stock has a market cap of $3.55 trillion, a PE ratio of 38.82, a P/E/G ratio of 2.39 and a beta of 1.20. The company has a debt-to-equity ratio of 1.51, a current ratio of 0.87 and a quick ratio of 0.83. The firm’s 50 day moving average price is $241.56 and its two-hundred day moving average price is $230.86.

Apple Company Profile

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.