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

Shares of Apple Inc. (NASDAQ:AAPL) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $173.03, but opened at $186.65. Apple shares last traded at $184.13, with a volume of 55,547,421 shares changing hands.

The iPhone maker reported $1.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.51 by $0.02. The company had revenue of $90.75 billion during the quarter, compared to analysts’ expectations of $90.37 billion. Apple had a net margin of 26.16% and a return on equity of 156.04%. Apple’s revenue was down 4.3% on a year-over-year basis. During the same period last year, the company posted $1.52 EPS.

Apple Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 16th. Shareholders of record on Monday, May 13th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.55%. The ex-dividend date of this dividend is Friday, May 10th. This is an increase from Apple’s previous quarterly dividend of $0.24. Apple’s payout ratio is 14.95%.

Apple declared that its board has initiated a share buyback program on Thursday, May 2nd that permits the company to repurchase $110.00 billion in outstanding shares. This repurchase authorization permits the iPhone maker to purchase up to 3.9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Analyst Ratings Changes

AAPL has been the topic of a number of recent research reports. Citigroup lowered their target price on Apple from $220.00 to $210.00 and set a “buy” rating on the stock in a report on Monday, April 29th. Bank of America upped their target price on shares of Apple from $225.00 to $230.00 and gave the company a “buy” rating in a report on Friday. Canaccord Genuity Group lifted their price target on shares of Apple from $200.00 to $215.00 and gave the stock a “buy” rating in a research note on Friday. Robert W. Baird boosted their price objective on shares of Apple from $186.00 to $200.00 and gave the company an “outperform” rating in a research report on Monday, January 29th. Finally, DZ Bank reaffirmed a “hold” rating and issued a $180.00 target price on shares of Apple in a report on Thursday, March 28th. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, twenty-two have assigned 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 $203.72.

Insider Activity

In related news, Director Arthur D. Levinson sold 100,000 shares of the firm’s stock in a transaction dated Thursday, February 29th. The shares were sold at an average price of $180.94, for a total value of $18,094,000.00. Following the transaction, the director now owns 4,434,576 shares of the company’s stock, valued at approximately $802,392,181.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In related news, Director Arthur D. Levinson sold 100,000 shares of the business’s stock in a transaction that occurred on Thursday, February 29th. The stock was sold at an average price of $180.94, for a total value of $18,094,000.00. Following the completion of the sale, the director now owns 4,434,576 shares in the company, valued at $802,392,181.44. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Timothy D. Cook sold 99,183 shares of the stock in a transaction that occurred on Monday, April 1st. The stock was sold at an average price of $170.03, for a total value of $16,864,085.49. Following the completion of the transaction, the chief executive officer now directly owns 3,377,407 shares in the company, valued at approximately $574,260,512.21. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 366,271 shares of company stock valued at $63,653,887. 0.06% of the stock is currently owned by company insiders.

Institutional Trading of Apple

Several institutional investors and hedge funds have recently made changes to their positions in the company. Arcus Capital Partners LLC raised its stake in shares of Apple by 0.8% during the 3rd quarter. Arcus Capital Partners LLC now owns 15,181 shares of the iPhone maker’s stock worth $2,599,000 after acquiring an additional 127 shares in the last quarter. Buttonwood Financial Advisors Inc. lifted its holdings in shares of Apple by 5.6% during the 3rd quarter. Buttonwood Financial Advisors Inc. now owns 15,990 shares of the iPhone maker’s stock valued at $2,738,000 after purchasing an additional 843 shares during the last quarter. Edmonds Duncan Registered Investment Advisors LLC boosted its position in shares of Apple by 900.1% in the 3rd quarter. Edmonds Duncan Registered Investment Advisors LLC now owns 295,556 shares of the iPhone maker’s stock worth $50,602,000 after purchasing an additional 266,003 shares in the last quarter. PPS&V Asset Management Consultants Inc. grew its stake in Apple by 10.9% during the 3rd quarter. PPS&V Asset Management Consultants Inc. now owns 36,478 shares of the iPhone maker’s stock worth $6,245,000 after buying an additional 3,571 shares during the last quarter. Finally, MinichMacGregor Wealth Management LLC raised its stake in Apple by 2.5% in the third quarter. MinichMacGregor Wealth Management LLC now owns 15,486 shares of the iPhone maker’s stock valued at $2,651,000 after buying an additional 383 shares during the last quarter. 60.41% of the stock is currently owned by institutional investors.

Apple Stock Performance

The firm has a market cap of $2.83 trillion, a price-to-earnings ratio of 28.56, a P/E/G ratio of 2.05 and a beta of 1.26. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.07 and a quick ratio of 1.02. The firm has a fifty day simple moving average of $172.15 and a two-hundred day simple moving average of $181.57.

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.