Apple Inc (AAPL) Reported a 31.51% Operating Margin Last Year—What’s the Real Story?

UBS has recently reiterated Apple Inc (AAPL) stock to Neutral rating, as announced on December 2, 2024, according to Finviz. Earlier, on November 19, 2024, MoffettNathanson had reiterated the stock to Neutral, setting a price target of $202 for AAPL stock. Loop Capital also reiterated Buy rating with a price target of $275. Additionally, Maxim Group reiterated Hold rating on November 1, 2024, with a target price of $215. KeyBanc Capital Markets analysts, in their report published on October 25, 2024, also reduced Underweight rating for Apple Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.

Apple Inc (AAPL) Stock Trading Recap

On Friday, Apple Inc (AAPL) stock saw a modest uptick, ending the day at $248.13 which represents a slight increase of $0.17 or 0.07% from the prior close of $247.96. The stock opened at $247.82 and touched a low of $246.24 during the day, reaching a high of $249.29. The volume of shares traded was 32.10 million falling short of the average volume of 47.54 million.

AAPL Stock Performance and Moving Averages

In recent trading, Apple Inc (AAPL) stock price has shown some volatility, fluctuating 2.18% over the last five trades and 10.22% 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 16.77%, and it has gained 14.71% in the previous three months. Currently, AAPL is trading at 4.32%, 6.80%, and 18.75% 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 -1.06% below its 52-week high but remains 51.23% above its 52-week low. The Average True Range (ATR) (14 days) of 3.56 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 financial health. The company currently boasts an operating margin of 31.51% and a profit margin of 23.97%, with a gross margin of 16.77%. 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 $3750.69 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 40.88, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 29.98. Additionally, the Price-to-Sales Ratio is 9.59, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 65.86, 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 62.60%.

Notable insider trades include LEVINSON ARTHUR D, Director at Apple Inc (AAPL), who sold 75000 shares on Nov 18 ’24, at $228.66 each, totaling $17.15 million. On Nov 15 ’24, LEVINSON ARTHUR D, Director, sold 75000 shares for $224.68 each, amounting to $16.85 million. Additionally, on Nov 19 ’24, LEVINSON ARTHUR D sold 50000 shares at $229.28 each, generating $11.46 million.