Apple (NASDAQ:AAPL) Shares Up 0.5% Following Earnings Beat

Apple Inc. (NASDAQ:AAPL) rose 0.5% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $212.95 and last traded at $213.64. Approximately 13,356,191 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 56,398,759 shares. The stock had previously closed at $212.50.

The iPhone maker reported $1.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.03. Apple had a net margin of 24.30% and a return on equity of 160.83%. The company had revenue of $95.36 billion during the quarter, compared to analyst estimates of $94.04 billion. During the same period in the previous year, the business posted $1.53 earnings per share. The firm’s quarterly revenue was up 5.1% compared to the same quarter last year.

Apple Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 15th. Investors of record on Monday, May 12th will be given a dividend of $0.26 per share. The ex-dividend date is Monday, May 12th. This is an increase from Apple’s previous quarterly dividend of $0.25. This represents a $1.04 annualized dividend and a yield of 0.51%. Apple’s payout ratio is 15.87%.

Apple declared that its board has approved a stock repurchase program on Thursday, May 1st that authorizes the company to repurchase $100.00 billion in outstanding shares. This repurchase authorization authorizes the iPhone maker to buy up to 3.1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

A number of brokerages recently issued reports on AAPL. Scotiabank downgraded Apple to a “market perform” rating in a research note on Friday. UBS Group reduced their price objective on shares of Apple from $236.00 to $210.00 and set a “neutral” rating for the company in a research note on Wednesday, April 23rd. Evercore ISI lifted their target price on shares of Apple from $260.00 to $275.00 and gave the company an “outperform” rating in a research note on Tuesday, March 18th. Tigress Financial increased their price target on Apple from $295.00 to $300.00 and gave the stock a “strong-buy” rating in a research note on Thursday, April 3rd. Finally, JPMorgan Chase & Co. decreased their price target on Apple from $270.00 to $245.00 and set an “overweight” rating on the stock in a report on Monday, April 14th. Three analysts have rated the stock with a sell rating, thirteen have issued a hold rating, twenty have issued a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, Apple currently has an average rating of “Moderate Buy” and a consensus price target of $233.25.

Insider Activity

In other Apple news, COO Jeffrey E. Williams sold 35,493 shares of the company’s stock in a transaction dated Wednesday, April 2nd. The shares were sold at an average price of $224.01, for a total value of $7,950,786.93. Following the transaction, the chief operating officer now directly owns 390,059 shares in the company, valued at $87,377,116.59. This represents a 8.34 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Timothy D. Cook sold 108,136 shares of the firm’s stock in a transaction that occurred on Wednesday, April 2nd. The stock was sold at an average price of $223.65, for a total transaction of $24,184,616.40. Following the transaction, the chief executive officer now directly owns 3,280,295 shares in the company, valued at approximately $733,637,976.75. This trade represents a 3.19 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 187,021 shares of company stock valued at $41,760,140. 0.06% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Apple

A number of hedge funds and other institutional investors have recently made changes to their positions in AAPL. Drystone LLC bought a new position in shares of Apple in the 4th quarter worth $25,000. Life Planning Partners Inc bought a new position in Apple in the fourth quarter worth about $47,000. Elite Financial Inc. purchased a new stake in shares of Apple during the first quarter valued at about $58,000. Conquis Financial LLC bought a new stake in shares of Apple in the 4th quarter valued at about $63,000. Finally, LSV Asset Management bought a new stake in shares of Apple in the 4th quarter valued at about $65,000. Institutional investors own 67.73% of the company’s stock.

Apple Stock Performance

The company has a current ratio of 0.92, a quick ratio of 0.88 and a debt-to-equity ratio of 1.26. The stock has a market cap of $3.08 trillion, a PE ratio of 32.60, a P/E/G ratio of 2.44 and a beta of 1.26. The business’s 50-day moving average price is $212.15 and its 200-day moving average price is $228.63.

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.