Apple Inc. (AAPL) to Become $548 Richer After Samsung Agrees to Pay Patent Settlement

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Apple Inc. (NASDAQ:AAPL) received some good news today, that has been 5-years in the making. Samsung has now formally agreed to pay Apple $548 million for the patent settlement which was rewarded to the company back in September. However, things are far from being over in this long contested legal battle.

Apple Inc. (NASDAQ:AAPL), if they can get a formal invoice to Samsung by today, will be the recipient of this settlement by December 14, according to a joint court statement. However, this certainly won’t be the end of patent disputes between the two companies.

With Samsung being Apple’s largest competitor when it comes to smartphone hardware, the two will continue going at it for years to come, and this latest settlement agreement isn’t even close to being the end of the disputes.

“Samsung further reserves all rights to reclaim or obtain reimbursement of any judgment amounts paid by Samsung to any entity in the event the partial judgment is reversed, modified, vacated or set aside on appeal or otherwise, including as a result of any proceedings before the USPTO addressing the patents at issue or as a result of any petition for writ of certiorari filed with the Supreme Court,” said Samsung.

The stock closed at $115.2 during the last trading session. It is down 10.66% since May 1, 2015 and is downtrending. It has underperformed the S&P500 by 7.88%.

From a total of 29 analysts covering Apple Inc. (NASDAQ:AAPL) stock, 26 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 90% of the ratings are positive. The highest target price is $200 while the lowest target price is $125. The mean of all analyst targets is $150.44 which is 30.59% above today’s ($115.2) stock price. Apple Inc. was the topic of 89 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Goldman Sachs upgraded shares on November 18 to a “Conviction Buy” rating. Credit Suisse maintained shares with a”Outperform” rating and a $140 target share price in their report from an October 28. Macquarie Research maintained AAPL stock in a recent report from October 28 with a “Buy” rating. Stifel Nicolaus maintained the rating on October 28. Stifel Nicolaus has a “Buy” rating and a $150 price target on shares. Finally, Oppenheimer maintained the stock with a “Buy” rating in a report they issued on an October 28.

The institutional sentiment increased to 0.96 in Q2 2015. It’s up 0.04, from 0.92 in 2015Q1. The ratio improved, as 82 funds sold all their Apple Inc. shares they owned while 968 reduced their positions. 128 funds bought stakes while 884 increased their total positions. Institutions now own 3.25 billion shares which is 19.08% less than the previous share count of 4.02 billion in 2015Q1.

American Asset Management Inc. holds 53.4% of its total portfolio in Apple Inc., equating to 7,252 shares. Nevsky Capital Llp owns 2.56 million shares representing 34.75% of their total US portfolio. Moreover, Summit Securities Group Llc has 28.14% of their total portfolio invested in the company, equating to 459,400 shares. The New York-based Independent Investors Inc has a total of 24.49% of their portfolio invested in the stock. Guild Investment Management Inc., a California-based fund reported 55,477 shares owned.

Since March 6, 2015, the stock had 0 insider purchases, and 8 insider sales for a total of $20.59 million in net activity. Maestri Luca sold 2,908 shares worth $325,347. Williams Jeffrey E sold 46,873 shares worth $5.18M. Riccio Daniel J. sold 24,085 shares worth $3.01 million. Ahrendts Angela J sold 44,789 shares worth $5.90 million. The insider Levinson Arthur D sold 70,000 shares worth $9.20 million.

Apple Inc. designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The company has a market cap of $642.28 billion. The Company’s services and products include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. It has 12.53 P/E ratio. The Firm also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store.

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