Investors Ask Why Apple Inc. (AAPL) Shares Are Falling

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Shares of Apple Inc. (NASDAQ:AAPL) continue to fall in pre-market trading this morning causing many investors to ask what’s up with the world’s largest company’s stock. After Morgan Stanley lowered their estimates for the stock on an expected leveling-off of 2016 iPhone sales, many investors seem to be shying away from the company despite their low PE ratio of just over 12, and a bucket-load of cash on their balance sheet.

News also broke last night that Apple Inc. (NASDAQ:AAPL) has opened a secret lab in Taiwan for the research and manufacturing of OLED displays according to reports. This, however, one would think would have positive implications for the stock, but to our surprise, the Morgan Stanley news from yesterday continues to weigh things down. The stock decreased 0.62% or $0.7 during the last trading session, hitting $112.48. Approximately 228,974 shares traded hands. AAPL shares have declined 10.64% since May 12, 2015 and are currently downtrending. It has underperformed the S&P500 by 6.96%.

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 $150.07 which is 33.42% above today’s ($112.48) stock price. Apple Inc. was the topic of 91 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Barclays Capital maintained shares on December 14 with a “Overweight” rating. Mizuho maintained shares with a”Hold” rating and a $125 target share price in their report from an October 28. Goldman Sachs upgraded AAPL stock in a recent report from November 18 to a “Conviction Buy” rating. Oppenheimer maintained the rating on October 28. Oppenheimer has a “Buy” rating and a $125 price target on shares. Finally, Macquarie Research maintained the stock with a “Buy” rating in a report they issued on an October 28.

The institutional sentiment increased to 1.18 in Q2 2015. It’s up 0.22, from 0.96 in 2015Q1. The ratio is positive, 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 $5.18 million. Riccio Daniel J. sold 24,085 shares worth $3.01M. Ahrendts Angela J sold 44,789 shares worth $5.90M. The insider Levinson Arthur D sold 70,000 shares worth $9.20M.

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 $631.02 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 12.23 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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