Apple Inc. (AAPL) is Threatened with Class Action Lawsuit Concerning ‘Error 53’ Issue

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Apple Inc. (NASDAQ:AAPL) has a goal of keeping both customers and shareholders happy. It’s the main goal that every large corporation aims to accomplish. So news of a potential class action lawsuit against the company definitely raised some eyebrows. The lawsuit which is be prepared against Apple concerning their iOS update that ended up “bricking” iPhone which had their home buttons replaced by third party companies or repaired by companies other than Apple, has made some headlines.

It now appears as though Apple will take action themselves, and fix iPhones with these errors at least at some stores.

“Normally they [Apple technicians] won’t touch a device that has been repaired by a third party,” said the Apple Support associate. “Having any kind of repairs done outside of an Apple Store basically voids the hardware warranty, because if, for example, something was hooked up incorrectly it can cause a whole bunch of issues. “It’s been left to the discretion of the individual store.”

The stock is up 0.18% or $0.17 following the news, hitting $95.18 per share. About 38.76 million shares traded hands. AAPL has declined 24.60% since July 6, 2015 and is downtrending. It has underperformed the S&P500 by 15.12%.

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 45.45% above today’s ($95.18) 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 increased, 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 5 selling transactions 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 $5.18M. 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 $533.29 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 10.11 P/E ratio. The Firm also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store.