Will Apple Inc. (AAPL)’s March 15 Launch of iPhone 5se Cause Surge of New Sales & Subsequent Stock Jump?

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Over the past few months shares of Apple Inc. (NASDAQ:AAPL) have fallen as investors have been bearish on the company because of speculation that iPhone sales have slowed up. While many analysts point to the fact that Apple’s sales have slowed mostly because they haven’t released a significantly upgraded iPhone since the iPhone 6, others still don’t like to think about the possibility of the company hitting a growth wall.

Come March 15 and Apple Inc. (NASDAQ:AAPL) will have an answer! At least they hope they will. While iPhone user growth may be dwindling, Apple has another trick up their sleeve, based on the premise that not everyone prefers the newest, larger-sized smartphones. Because of this, they are announcing the iPhone 5se, a smartphone that features most of the same upgrades as the iPhone 6s, but it’s still the same size as the iPhone 5. The goal? To get those users who prefer the smaller hand sets to upgrade. Previously many of these users were holding out on upgrading simply because they didn’t want a larger phone. Now that is no longer a deterrent.

The iPhone 5se as well as a new iPad Air will go on sale starting on Friday, March 18th. If successful, this could end the talks of slowing iPhone sales. Then later this year we are expecting to see the iPhone 7 which should certainly put an end to such talk.

The stock increased 0.31% or $0.29 on February 12, hitting $93.99. About 40.35 million shares traded hands. AAPL has declined 23.76% since July 10, 2015 and is downtrending. It has underperformed the S&P500 by 14.29%.

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 47.29% above today’s ($93.99) 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 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 $5.90 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 $522.75 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 9.98 P/E ratio. The Firm also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store.

  • John

    Of course sales are going to be impressive, millions of people are totally happy with their mediocre iphones. “There is a sucker born every minute”

  • The reality? If you are like me and you still prefer a 4″ screen phone, then like me you were already back on an iPhone 5S. And the fact that Apple has made the phone you’ll care about next year is really great. Because your iPhone 5S runs 9.3 great. And you have no actual reason to upgrade. And if you are any consumer that just wants a smaller phone, you can pick up an iPhone 5S in mint condition right now for about 175 bucks. And if like me you are deeply invested in Google’s ecosystem, you can put all of Apple’s horrible apps in a folder named “iCrap”, and install all of Google’s better apps and use them. They work with each other. An iPhone can be a great Google phone.