DA Davidson Maintains Neutral Rating on Apple Shares Amid Analyst Upgrades
DA Davidson has reaffirmed its neutral rating on shares of Apple Inc. (NASDAQ:AAPL) in a report released on Thursday, September 4, 2023. The brokerage has set a price target of $250.00 for the technology giant’s stock. This rating comes amid a flurry of activity from other analysts, highlighting the differing outlooks on Apple’s performance in the market.
Following DA Davidson’s announcement, Bank of America raised its price target for Apple from $260.00 to $270.00, maintaining a “buy” rating. This upward revision indicates a strong confidence in the company’s potential to generate growth in the near future. In contrast, Moffett Nathanson upgraded its rating from “sell” to “neutral” with a price objective set at $225.00, reflecting a more cautious approach.
Meanwhile, Morgan Stanley established a target price of $240.00 and assigned an “overweight” rating to Apple. Monness Crespi & Hardt also increased their target from $245.00 to $270.00 with a “buy” recommendation. Rosenblatt Securities adjusted its target from $223.00 to $241.00 while maintaining a neutral stance.
Analysts’ consensus on Apple’s stock has become increasingly optimistic; two analysts have given it a “Strong Buy” rating, fifteen have assigned a “Buy” rating, and fourteen hold a “Hold” rating. Only one analyst has issued a “Sell” rating. According to MarketBeat.com, the average rating for Apple is classified as a “Moderate Buy,” with a consensus price target of $240.80.
Apple’s Financial Performance and Dividend Announcement
On July 31, 2023, Apple reported its quarterly earnings, revealing an earnings per share (EPS) of $1.57, surpassing the consensus estimate of $1.43 by $0.14. The company achieved a return on equity of 170.91% and a net margin of 24.30%. Notably, Apple’s revenue for the quarter reached $94.04 billion, exceeding the projected $88.64 billion. This marked a 9.6% increase in revenue compared to the same quarter of the previous year.
Alongside its earnings report, Apple also announced a quarterly dividend of $0.26 per share, which was paid on August 14, 2023. Investors of record on August 11, 2023, received this dividend, representing an annualized yield of 0.4%. Apple’s dividend payout ratio currently stands at 15.78%, indicating a sustainable approach to returning value to shareholders.
Recent Insider Transactions and Institutional Investments
In related news, Apple’s Senior Vice President, Deirdre O’Brien, sold 34,821 shares on August 8, 2023, at an average price of $223.20, totaling approximately $7,772,047.20. Post-transaction, O’Brien owns 136,687 shares valued at around $30,508,538.40, reflecting a 20.30% decrease in her holdings. This sale was documented in a filing with the Securities and Exchange Commission (SEC).
Recent shifts in institutional investment also reflect confidence in Apple. Milestones Private Investment Advisors LLC acquired a new stake valued at approximately $2,921,000. WT Wealth Management increased its position by 8.7%, owning 44,563 shares worth $9,143,000. NWF Advisory Services Inc. and Prospera Capital Management LLC similarly enhanced their stakes, with the former owning 135,872 shares valued at $27,877,000 and the latter 6,656 shares worth $1,366,000.
Overall, hedge funds and institutional investors currently hold 67.73% of Apple’s stock, underscoring the company’s strong position in the market. As Apple continues to navigate its growth trajectory, analyst ratings and market performance will remain closely monitored by investors and industry experts alike.
