Apple (NASDAQ:AAPL) Stock Price Up 6.6% on Earnings Beat

Apple Inc. (NASDAQ:AAPL) shares were up 6.6% on Friday following a stronger than expected earnings report. The stock traded as high as $187.00 and last traded at $184.51. Approximately 67,264,407 shares were traded during trading, an increase of 11% from the average daily volume of 60,859,910 shares. The stock had previously closed at $173.03.

The iPhone maker reported $1.53 earnings per share (EPS) for the quarter, topping 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 quarterly revenue was down 4.3% compared to the same quarter last year. During the same quarter last year, the company posted $1.52 EPS.

Apple Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 16th. Investors of record on Monday, May 13th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 0.55%. This is a positive change from Apple’s previous quarterly dividend of $0.24. The ex-dividend date of this dividend is Friday, May 10th. Apple’s dividend payout ratio (DPR) is currently 14.95%.

Apple declared that its Board of Directors has approved a stock buyback program on Thursday, May 2nd that allows the company to buyback $110.00 billion in outstanding shares. This buyback authorization allows the iPhone maker to purchase up to 3.9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

AAPL has been the topic of a number of analyst reports. Bank of America increased their price target on Apple from $225.00 to $230.00 and gave the stock a “buy” rating in a research report on Friday. Redburn Atlantic cut Apple from a “buy” rating to a “neutral” rating and set a $200.00 price target on the stock. in a research report on Wednesday, January 10th. Citigroup reduced their price objective on shares of Apple from $220.00 to $210.00 and set a “buy” rating on the stock in a research note on Monday, April 29th. Maxim Group began coverage on shares of Apple in a research report on Wednesday, April 17th. They issued a “hold” rating and a $178.00 target price for the company. Finally, Wedbush reiterated an “outperform” rating and set a $250.00 price target on shares of Apple in a research report on Friday. 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 issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $203.72.

Insider Activity

In related news, Director Arthur D. Levinson sold 100,000 shares of the company’s stock in a transaction on Thursday, February 29th. The shares were sold at an average price of $180.94, for a total transaction of $18,094,000.00. Following the completion of the sale, the director now directly owns 4,434,576 shares in the company, valued at approximately $802,392,181.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other Apple news, CEO Timothy D. Cook sold 99,183 shares of the stock in a transaction 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 owns 3,377,407 shares in the company, valued at $574,260,512.21. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Arthur D. Levinson sold 100,000 shares of the business’s stock in a transaction on Thursday, February 29th. The shares were sold at an average price of $180.94, for a total transaction of $18,094,000.00. Following the sale, the director now owns 4,434,576 shares in the company, valued at approximately $802,392,181.44. The disclosure for this sale can be found here. Over the last 90 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 Investors Weigh In On Apple

Hedge funds have recently bought and sold shares of the business. Headinvest LLC increased its holdings in shares of Apple by 1.7% during the third quarter. Headinvest LLC now owns 53,155 shares of the iPhone maker’s stock valued at $9,236,000 after acquiring an additional 872 shares in the last quarter. Sound Income Strategies LLC raised its holdings in Apple by 16.1% in the fourth quarter. Sound Income Strategies LLC now owns 75,110 shares of the iPhone maker’s stock worth $14,461,000 after buying an additional 10,425 shares during the last quarter. DNB Asset Management AS lifted its stake in shares of Apple by 6.9% in the fourth quarter. DNB Asset Management AS now owns 4,307,068 shares of the iPhone maker’s stock worth $829,240,000 after buying an additional 279,311 shares in the last quarter. Boltwood Capital Management grew its holdings in shares of Apple by 2.8% during the fourth quarter. Boltwood Capital Management now owns 37,178 shares of the iPhone maker’s stock valued at $7,158,000 after buying an additional 1,021 shares during the last quarter. Finally, Private Wealth Partners LLC increased its position in shares of Apple by 3.8% during the third quarter. Private Wealth Partners LLC now owns 673,349 shares of the iPhone maker’s stock valued at $115,284,000 after acquiring an additional 24,634 shares in the last quarter. Institutional investors own 60.41% of the company’s stock.

Apple Stock Performance

The company has a market capitalization of $2.83 trillion, a PE ratio of 28.56, a price-to-earnings-growth ratio of 2.05 and a beta of 1.26. The company has a current ratio of 1.07, a quick ratio of 1.02 and a debt-to-equity ratio of 1.28. The business’s fifty day moving average is $172.15 and its two-hundred day moving average is $181.57.

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.