Apple Inc. (AAPL) Stock Is Worth the Long-Term Chance

Analysts at HSBC Securities cut their rating on shares of Apple Inc. (NASDAQ:AAPL) from Buy to Hold in their opinion released on December 04. Canaccord Genuity analysts again handed out a Buy rating to AAPL stock but they lifted target price for the shares in a flash note to investors on November 29. The price target has been raised from $250 to $225. Canaccord Genuity, analysts launched coverage of AAPL stock with a Buy rating, according to their flash note to investors on November 29. Analysts at Goldman are sticking to their Neutral recommendation. However, on November 20, they lifted target price for these shares to $182 from $209. Analysts at Goldman, made their first call for the stock with a Neutral rating, according to a research note that dated back to November 20.

Bears have made their way to Apple Inc. (NASDAQ:AAPL) as short interest on AAPL stock has climbed by 5,322,279 shares during the most recent reporting period. The most recent short interest data has been released for the November 15th settlement date, which shows a increase in total short interest for AAPL, to 41,791,371, a surge of 14.59% since October 31st. Average daily volume for Apple Inc. at the November 15th settlement jumped to 49,659,457, as compared to 35,371,102 at the October 31st report. That brought days to cover to 1, a 3.01% decrease from the 1.031042 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Apple Inc. (NASDAQ:AAPL)’s prospects. The earliest insider trade took place on 11/19/2018. Kondo Chris parted with a total of 3.41 thousand shares of company at average share price of $190. The total for the sales was set at $647.52 thousand. After this transaction, the Principal Accounting Officer account balance stood at 8.94 thousand shares. The stock lost -7.01 percent since that insider sale. On 10/05/2018, Ahrendts Angela J, Senior Vice President, sold 64.19 thousand shares at a price per share of $230.89. This removed 14.82 million shares from the insider’s fortune and the stock saw a -23.47 percent retreat in value since the news became public. This transaction left 66.34 thousand shares in the Senior Vice President account. On 10/04/2018, Senior Vice President, CFO Maestri Luca performed a sale transaction worth $22.91 million. This sale at $228.56 each has eliminated 100.25 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -22.69 percent decrease since the transaction was reported. The insider now is left with 27.32 thousand shares remaining in the account. Williams Jeffrey E, who performs the COO job, sold 62 thousand shares for $14.4 million. The disposal occurred on 10/03/2018 was priced at $232.33 per share. The share price plunged -23.95 percent since the reporting date. Williams Jeffrey E now left with a stake of 108.09 thousand AAPL stock worth $19.1 million after the insider selling.

Apple Inc. (AAPL) is expected to jump by 30.92 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $300-month high price target. This represents a whopping 69.79 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $225, which represents a return potential of 27.34 percent when compared to the closing price of the stock of $176.69 on Tuesday, December 04. The lowest price target for the stock is $165 — slightly more than -6.62 percent from AAPL’s current share price.

The shares are currently floating around the first support level of $174.51. Below this, the next support is placed in the zone of $172.33. Till the time, the AAPL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 36.86 on daily chart, which may remain a cause for comfort. If the price breaks below $172.33 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $180.63 mark may result into a pull-back move towards $184.57 level.

AAPL shares dropped -8.13 points or -4.4 percent on Tuesday to $176.69 with a heavy trade volume of 41.058 million shares. After opening the session at $180.95, the shares went as high as $182.3899 and as low as $176.27, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $843 billion and now has 4.77 billion shares outstanding. Apple Inc. (AAPL) stock has lost -14.84 percent of market value in 21 trading days.

AAPL stock has a trailing 3-year beta of 1.22, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $12.15 a share in the trailing twelve months. The stock’s value has surged 4.41 percent year to date (YTD) against a rise of 4.06 percent in 12 month’s time. The company’s shares still trade -24.32 percent away from its 1-year high of $233.47 and 17.61 percent up from 52-week low of $150.24. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Apple Inc. (AAPL) are trading at a P/E ratio of 14.34 times earnings reported for the past 12 months. The industry AAPL operates in has an average P/E of 6.17. Its P/E ratio went as low as 12.45X and as high as 18.49 over the 5-year span. Further, it is sporting a 3.17 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.23. 38.3 percent is the gross profit margin for Apple Inc. and operating margin sits at 26.7 percent. Along with this, the net profit margin is 22.4 percent.

AAPL will be showing off its Q1 earnings on January 29. Analysts are forecasting revenue to climb 4.1 percent to $91.9B in the next fiscal quarter, while earnings are seen soaring by nearly 21.34 percent to $4.72 per share. History has shown that shares in Apple Inc. have gone up on 19 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $2.91 per share, better than the $2.78, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $62.9B, better than the $61.6B analysts expected. Earnings are estimated to increase by 32.6 percent this year, 10.1 percent next year and continue to increase by 13 percent annually for the next 5 years.