It’s almost unbelievable if you ask me, that shares of Apple Inc. (NASDAQ:AAPL) have fallen as much as they have. Yes, iPhone sales have slowed over the last few quarters, but what investors forget is that we are on an ‘s’ cycle. When the iPhone 5s came out the year after the 5, growth slowed as well for the Culpertino company. Here we are and the same things is happening on repeat. The iPhone 6 was a blockbuster, simply because it was a major revision over the iPhone 5 and 5s. At the same time the iPhone 6s was only an incremental upgrade. With the iPhone 7 expected to be launched sometime in September of this year, there is the potential for Apple Inc. (NASDAQ:AAPL) to have a 100 million iPhone quarter. If this happens, look for the stock to easily hit new all time highs and soar over the $150 mark.
When one considers that Apple’s PE ratio is under 10 right now, and incredibly under 6 if you exclude cash from the company’s market cap, this is one of the most undervalued stocks there is. Growth will continue, perhaps not at a 2012- 2014 clip, but it will continue, and in our opinion should warrant an earnings multiple of at least 18, perhaps even 24, meaning that this stock is trading at 40-50% of it’s true value.
The $92, 52-week low serves as a pretty strong floor for the stock in our opinion. The stock decreased 2.67% or $2.58 on February 5, hitting $94.02. Approximately 46.42M shares traded hands. AAPL shares have declined 25.64% since July 2, 2015 and are currently downtrending. It has underperformed the S&P500 by 16.77%.
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 52.06% above today’s ($94.02) 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 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 $5.18M. 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 $9.20M.
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 $507.38 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 9.99 P/E ratio. The Firm also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store.