Apple (NASDAQ:AAPL) is trading 6.6% higher after improving earnings

The stock price of Apple Inc. (NASDAQ:AAPL – Get Free Report) rose 6.6% in afternoon trading on Friday following a better-than-expected earnings announcement. The stock traded as high as $187.00 and last traded at $184.51. About 67,264,407 shares traded hands during trading, an increase of 11% from the average daily volume of 60,859,910 shares. The stock previously closed at $173.03.

The iPhone maker reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.02. Apple had a net margin of 26.16% and a return on equity of 156.04%. The company had revenue of $90.75 billion for the quarter, compared to the consensus estimate of $90.37 billion. During the same period last year, the company posted earnings per share of $1.52. The company’s revenue fell 4.3% compared to the same quarter last year.

Apple increases dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 16. A dividend of $0.25 per share will be paid to shareholders of record on Monday, May 13. The ex-dividend date is Friday, May 10. This represents a dividend of $1.00 annually and a dividend yield of 0.55%. This is a boost from Apple’s previous quarterly dividend of $0.24. Apple’s dividend payout ratio currently stands at 14.95%.

Apple announced that its Board of Directors initiated a stock repurchase program on Thursday, May 2, allowing the company to repurchase $110.00 billion in outstanding shares. This buyback authorization allows the iPhone maker to buy up to 3.9% of its shares through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes the stock is undervalued.

Analyst upgrades and downgrades

A number of equities research analysts have recently issued reports on the stock. Needham & Company LLC reaffirmed a Buy rating and set a $220.00 target price on shares of Apple in a report on Friday. Piper Sandler lowered their target price on shares of Apple from $205.00 to $190.00 and set a “neutral” rating for the stock in a research note on Friday, February 2nd. Oppenheimer reiterated an “outperform” rating and issued a $200.00 price target on shares of Apple in a research report on Friday, February 2. Bank of America raised its price target for Apple from $225.00 to $230.00 and gave the company a buy rating in a report on Friday. Finally, Rosenblatt Securities reissued a “neutral” rating and set a $196.00 price objective (previously from $189.00) on Apple stock in a research note on Friday. One 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 given a strong buy rating to the stock. According to data from MarketBeat, Apple currently has a consensus rating of “Moderate Buy” and a consensus price target of $203.72.

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Insider activity

In other Apple news, SVP Deirdre O’brien sold 54,732 shares of the stock in a transaction that occurred on Tuesday, April 2nd. The shares were sold at an average price of $168.91, for a total transaction of $9,244,782.12. Following the sale, the senior vice president now directly owns 136,572 shares of the company’s stock, valued at approximately $23,068,376.52. The transaction was disclosed in a document filed with the SEC, which is available at this link. In other Apple news, SVP Deirdre O’brien sold 54,732 shares of the company’s stock in a transaction on Tuesday, April 2. The shares sold at an average price of $168.91, for a total value of $9,244,782.12. Following the completion of the transaction, the senior vice president now owns 136,572 shares of the company’s stock, valued at $23,068,376.52. The transaction was disclosed in a legal filing with the SEC, which can be accessed via this hyperlink. Also, director Arthur D. Levinson sold 100,000 shares in a transaction on Thursday, February 29. The shares sold at an average price of $180.94, for a total value of $18,094,000.00. Following the completion of the sale, the director now owns 4,434,576 shares in the company, valued at $802,392,181.44. The explanation of this sale can be found here. Last quarter, insiders sold 366,271 company shares worth $63,653,887. Currently, 0.06% of the shares are owned by company insiders.

Apple Institutional Trading

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

Apple is trading 6.0% higher

The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.02 and a current ratio of 1.07. The company has a market cap of $2.83 trillion, a price-to-earnings ratio of 28.56, a PEG ratio of 2.05, and a beta of 1.26. The company has a 50-day moving average of $172.15 and a 200-day moving average of $181.57.

About Apple

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Apple Inc designs, manufactures and sells smartphones, personal computers, tablets, wearables and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a range of personal computers; iPad, a range of multi-function tablets; and wearables, homes and accessories, including AirPods, Apple TV, Apple Watch, Beats products and HomePod.

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