One way that some stock advisors make a ton of money, is by telling different groups of investors to make totally opposite trades from one another. This way the advisor is sure to have 50% of the investors applauding his pick. Not all advisors do this of course, but this example goes to show just how stock predictors gain notoriety.
Apple Inc. (NASDAQ:AAPL) shareholders know that this year has not been all so kind to those long in the company. The stock has put forth a bearish year, and this goes against what most analysts had believed. One analyst, however, by the name of Richard Ross actually predicted the stock to be quite bearish and his prediction came true.
Now Ross says that he could see shares of Apple Inc. (NASDAQ:AAPL) hit lows of $75 based on technical analysis, more specifically the “head and shoulders” pattern. By his judgement he concludes that if Apple Inc. (NASDAQ:AAPL) shares were to break this pattern and fall below $106 per share, it could send investors into ultra-bearish mode, selling their shares at a rapid rate. His conclusion is that the stock could fall all the way down to $75.
While this sounds terrifying, keep in mind that Apple is trading with a P/E ratio of 11.68, and on top of this, much of that number includes a large sum of cash. There is no way that we could see Apple shares falling to $75 on a technicals alone in my mind. Sure Ross was correct on Apple previously but that does not means he will be right again.
The stock is up 0.06% or $0.06 following the news, hitting $107.39 per share. About 23.90M shares traded hands. AAPL has declined 17.48% since May 19, 2015 and is downtrending. It has underperformed the S&P500 by 15.22%.
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 $149.71 which is 39.41% above today’s ($107.39) stock price. Apple Inc. was the topic of 92 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. UBS maintained shares on December 16 with a “Buy” rating. Mizuho maintained shares with a”Hold” rating and a $125 target share price in their report from an October 28. BMO Capital Markets initiated AAPL stock in a recent report from December 11 with a “Outperform” 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 2015Q2. The ratio improved, as 103 funds sold all their Apple Inc. shares they owned while 854 reduced their positions. 102 funds bought stakes while 1032 increased their total positions. Institutions now own 3.20 billion shares which is 1.58% less than the previous share count of 3.25 billion in 2015Q2.
Compton Capital Management Inc Ri holds 45.15% of its total portfolio in Apple Inc., equating to 113,694 shares. Raiff Partners Inc owns 100,000 shares representing 32.27% of their total US portfolio. Moreover, Rfg Advisory Group Llc has 25.06% of their total portfolio invested in the company, equating to 70,558 shares. The New York-based Independent Investors Inc has a total of 23.66% of their portfolio invested in the stock. Dock Street Asset Management Inc, a Connecticut-based fund reported 269,584 shares owned.
Since March 6, 2015, the stock had 0 insider purchases, and 8 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 $3.01M. Ahrendts Angela J sold 44,789 shares worth $5.90 million. 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 $598.76 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 11.68 P/E ratio. The Firm also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store.