While it seems like nearly every major tech firm and auto maker alike are entering the automated electric vehicle space in one way or another, it’s been known for close to two years now that Apple Inc. (NASDAQ:AAPL) has plans of their own. Whether those plans are to actually produce a vehicle, or just develop an operating system and software for these vehicles has remained somewhat of a mystery, but today Tesla’s (NASDAQ:TSLA) Elon Musk may have clarified things a bit. In an interview with the BBC Musk said that it is ‘obvious’ that Apple Inc. (NASDAQ:AAPL) would try and make their own electric car, and that such a move was an ‘open secret’.
“It’s pretty hard to hide something if you hire over a thousand engineers to do it,” Musk told the BBC in a rare TV interview, adding that Apple’s car project is “an open secret.”
While Apple’s (NASDAQ:AAPL) entrance into the space would lead to direct competition for Tesla (NASDAQ:TSLA), Apple could also be one of their biggest customers, as Tesla’s new Gigafactory comes online over the next year, allowing them to supply affordable batteries to the industry. Regardless of what happens, Musk has set the company up to make money even with a number of other competing firms producing similar vehicles.
Shares of Tesla and Apple are both up this morning in the pre-market. The stock increased 1.62% or $1.57 during the last trading session, hitting $98.53. About 260,798 shares traded hands. AAPL has declined 22.90% since June 8, 2015 and is downtrending. It has underperformed the S&P500 by 18.21%.
From a total of 30 analysts covering Apple Inc. (NASDAQ:AAPL) stock, 27 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 $147.93 which is 50.14% above today’s ($98.53) stock price. Apple Inc. was the topic of 96 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Stifel Nicolaus maintained shares on December 23 with a “Buy” rating. Barclays Capital maintained shares with a”Overweight” rating and a $150 target share price in their report from a December 14. Cowen & Co maintained AAPL stock in a recent report from December 22 with a “Market Perform” rating. BMO Capital Markets initiated the rating on December 11. BMO Capital Markets has a “Outperform” rating and a $145 price target on shares. Finally, UBS maintained the stock with a “Buy” rating in a report they issued on a December 16.
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 buys, and 7 insider sales for a total of $17.48 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 $537.59 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 10.71 P/E ratio. The Firm also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store.