It’s quite amazing how low shares Apple Inc. (NASDAQ:AAPL) dipped last week. If one was to exclude the cash and cash equivalence on the company’s balance sheet, their PE ratio would have been close to 7. This is basically what a stock trades at in the current market should they have no growth prospects at all. In fact, there are many shrinking companies trading at a higher PE ratio than that.
Sure Apple Inc. (NASDAQ:AAPL) may report a slight dip in sales of iPhones this last quarter, but does that mean iPhone sales will stop growing forever, or that the company won’t expand upon new products like the market-dominating Apple Watch or Apple TV? What about future products which we know they are working on and more than likely will be huge revenue catalysts in the years ahead?
Virtual reality is the future of media consumption. The hiring of Doug Bowman, a genius when it comes to augmented and virtual reality, all but guarantees that Apple plans to enter this space. They already have a huge advantage in their brand and supply chain dominance, meaning that when they do launch a product within the VR space, sales should be staggering.
Next comes the Apple Car. While we don’t yet know how they will bring a possible vehicle to market, or if it will be electric and autonomous or just one of the two, we do know that Apple Inc. (NASDAQ:AAPL) is taking their vehicle initiative quite seriously. With their ability to use their brand as a margin widener, and their huge following, a car thats both sleek and efficient could be more valuable to the company than even the iPhone has been over the last 7-8 years.
Apple’s future growth prospects are strong, it’s just that many investors are way too shortsighted. The stock increased 5.32% or $5.12 on January 22, hitting $101.42. About 65.80 million shares traded hands or up 27.47% from the average. AAPL has declined 20.69% since June 18, 2015 and is currently downtrending. It has underperformed the S&P500 by 11.82%.
From a total of 32 analysts covering Apple Inc. (NASDAQ:AAPL) stock, 28 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 $142.97 which is 40.97% above today’s ($101.42) stock price. Apple Inc. was the topic of 105 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank maintained shares on January 11 with a “Hold” rating. Stifel Nicolaus maintained shares with a”Buy” rating and a $140 target share price in their report from a December 23. Mizuho upgraded AAPL stock in a recent report from January 11 to a “Buy” rating. Barclays Capital maintained the rating on December 14. Barclays Capital has a “Overweight” rating and a $150 price target on shares. Finally, Canaccord Genuity maintained the stock with a “Buy” rating in a report they issued on a January 8.
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 6 insider sales for a total of $11.59 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 $9.20M.
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 $533.93 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 11.03 P/E ratio. The Firm also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store.