Apple Inc (AAPL) Stock: A Deeper Look at Its True Potential
MoffettNathanson has recently initiated Apple Inc (AAPL) stock to Neutral rating, as announced on August 19, 2024, according to Finviz. Earlier, on August 2, 2024, Monness Crespi & Hardt had reiterated the stock to Buy, setting a price target of $245 for AAPL stock. Maxim Group also reiterated Hold rating with a price target of $203. Additionally, TD Cowen reiterated Buy rating on July 29, 2024, with a target price of $250. JP Morgan analysts, in their report published on July 24, 2024, also reiterated Overweight rating and set a price target of $265 for Apple Inc’s stock. Analyst ratings are significant because they provide insights into stock per formance expectations, influencing investor decisions and market sentiment.
Apple Inc (AAPL) Stock Trading Recap
On Tuesday, Apple Inc (AAPL) stock saw a modest uptick, ending the day at $227.37 which represents a slight increase of $0.90 or 0.40% from the prior close of $226.47. The stock opened at $228.65 and touched a low of $225.73 during the day, reaching a high of $229.35. The volume of shares traded was 41.78 million falling short of the average volume of 56.76 million.
AAPL Stock Per formance and Moving Averages
In recent trading, Apple Inc (AAPL) stock price has shown some volatility, fluctuating 4.88% over the last five trades and 0.23% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 33.08%, and it has gained 8.75% in the previous three months. Currently, AAPL is trading at 1.65%, 2.25%, and 15.70% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AAPL, a Technology sector stock, is trading -4.16% below its 52-week high but remains 38.58% above its 52-week low. The Average True Range (ATR) (14 days) of 4.97 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Apple Inc’s Profitability and Valuation Ratios
Apple Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 31.27% and a profit margin of 26.44%, with a gross margin of 33.08%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Apple Inc’s market capitalization stands at $3456.96 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 34.62, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 30.55. Additionally, the Price-to-Sales Ratio is 8.97, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 51.88, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.09% of Apple Inc (AAPL)’s shares, while financial institutions hold 62.52%.
Notable insider trades include KONDO CHRIS, Principal Accounting Officer at Apple Inc (AAPL), who sold 8706 shares on Aug 15 ’24, at $225 each, totaling $1.96 million. On Aug 09 ’24, KONDO CHRIS, Principal Accounting Officer, sold 5178 shares for $216.5 each, amounting to $1.12 million. Additionally, on Aug 05 ’24, Adams Katherine L. sold 100000 shares at $206.44 each, generating $20.64 million.