How Will Apple Inc. (AAPL)’s $626 Million Legal Ruling Affect the Stock? Apparently it won’t

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Today came news of a court ruling stating that Apple Inc. (NASDAQ:AAPL) needs to pay VirnetX Holding Corporation (NYSE:VHC) $625.6 million for infringing upon their patents. This seems like a ridiculous amount of money, and there is no doubt that it is. However, if you were wondering if the ruling will affect the way that Apple runs, the answer is “No”.

$625.6 million is a ton of money, but when you consider that Apple Inc. (NASDAQ:AAPL) is valued at over $532 billion as a company, and that they have over $200 billion in cash on hand, this number seems quite small. Apple did indeed infringe on several patents related to Facetime, iMessage and more, but undoubtedly this is still a win for the company. Where would Apple be today without FaceTime and iMessage? Certainly not where they currently stand in the smartphone market.

Today, shares of Apple Inc. (NASDAQ:AAPL) stock are up slightly in spite of the news, and we don’t think this lawsuit will affect how the company runs in the future. They will continue to create innovative products, and certainly face future lawsuits of this nature. It’s just all part of being one of the worlds most valuable companies.

The stock is up 0.34% or $0.33 following the news, hitting $96.16 per share. About 25.25 million shares traded hands. AAPL has declined 23.18% since June 30, 2015 and is downtrending. It has underperformed the S&P500 by 15.89%.

From a total of 33 analysts covering Apple Inc. (NASDAQ:AAPL) stock, 29 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 88% of the ratings are positive. The highest target price is $200 while the lowest target price is $102. The mean of all analyst targets is $138.44 which is 43.97% above today’s ($96.16) stock price. Apple Inc. was the topic of 119 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Argus Research maintained shares on January 27 with a “Buy” rating. FBR Capital maintained shares with a”Outperform” rating and a $130 target share price in their report from a January 27. Morgan Stanley maintained AAPL stock in a recent report from January 27 with a “Overweight” rating. Barclays Capital maintained the rating on January 27. Barclays Capital has a “Overweight” rating and a $142 price target on shares. Finally, Maxim Group maintained the stock with a “Buy” rating in a report they issued on a January 27.

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 buys, and 5 sales for a total of $8.58 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 $3.01 million. Ahrendts Angela J sold 44,789 shares worth $5.90M. 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 $531.51 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 10.21 P/E ratio. The Firm also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store.

  • hiramwalker

    Of course the West Texas Kangaroo court ruling will not affect anything. The result was a foregone conclusion, and will be overturned, as usual, at the appeals court. Anyone watching tech patent cases in Texas for the last ten years would be aware of this.

  • Kim Real

    Before being so flippant about Kangaroo courts maybe if you put the bottle down and did some fact checking yourself before, belittling inventors who sell their interest in their IP. To someone with deep pockets because there is no way they can prevail against Microsoft,Apple,IBM who infringe knowing the sole patent owner can’t challenge them they know the Inventor don’t have the resources.
    To me this makes them the Real Trolls.