Bank of America Projects Significant Growth for Apple (NASDAQ:AAPL) Stock

On December 5, 2024, Bank of America revised its target price for Apple Inc. (NASDAQ:AAPL) to $256.00, signaling a strong outlook for the technology giant. The bank has maintained a buy rating on Apple's stock, emphasizing its positive sentiment regarding the company's future performance.

Other analysts have also weighed in on Apple, reflecting a variety of opinions. For instance, Maxim Group recently raised its price target for Apple from $203.00 to $215.00, assigning a hold rating to the stock. JPMorgan Chase & Co. supports a robust outlook, reaffirming an overweight rating with a target price of $265.00. Wedbush, on the other hand, has set an even higher target of $300.00, indicating a strong outperform rating for Apple. Meanwhile, analysts at Moffett Nathanson lowered their target price from $211.00 to $202.00 while maintaining a neutral stance, and New Street Research continued to hold a neutral rating with a target set at $225.00. According to MarketBeat.com, the consensus rating is "Moderate Buy," with a consensus price target of approximately $235.68.

Current Stock Performance

As of the latest trading session on Wednesday, Apple shares opened at $243.01. The company boasts a market capitalization of $3.67 trillion with a price-to-earnings (P/E) ratio of 39.97 and a P/E growth (P/E/G) ratio of 2.35. Apple has demonstrated notable financial metrics, such as a current ratio of 0.87 and a quick ratio of 0.83, alongside a debt-to-equity ratio of 1.51. Over the past twelve months, the stock has had a low of $164.07 and a high of $244.11. The moving averages for the stock currently stand at $229.92 for the 50-day period and $220.90 for the 200-day period.

Financial Results and Dividends

Apple announced its earnings on October 31, revealing earnings per share (EPS) of $1.64 for the quarter, which surpassed expectations of $1.60 by $0.04. The tech giant reported a remarkable return on equity of 152.94% and a net margin of 23.97%. With quarterly revenue reaching $94.93 billion, it outperformed analyst estimates of $94.52 billion. This represented a year-over-year revenue increase of 6.1% compared to the previous year's same quarter. Analysts predict an EPS of 7.43 for Apple's current fiscal year.

Moreover, Apple recently declared a quarterly dividend of $0.25 per share, paid on November 14. The annualized dividend stands at $1.00, offering a yield of 0.41%. Shareholders on record as of November 11 were eligible for this dividend, and the ex-dividend date was November 8. Apple's payout ratio is approximately 16.45%.

Insider Transactions

In other notable news, insider Chris Kondo sold 4,130 shares on November 18, at an average price of $228.87, resulting in a total transaction value of around $945,233. Following the sale, Kondo now holds 15,419 shares with a value exceeding $3.5 million, marking a significant decrease in ownership. Similarly, CFO Luca Maestri sold 59,305 shares on October 4 at an average price of $226.52, totaling around $13.43 million. After this transaction, Maestri's remaining shares in the company are valued at about $24.42 million. Insider sales over the last quarter amounted to 408,170 shares, valued at around $92 million, indicating that insiders own approximately 0.06% of Apple's stock.

Institutional Investment Trends

Recent activity among institutional investors shows growing interest in Apple shares. For instance, Bull Oak Capital LLC increased its holdings by 252.3% in the third quarter, now owning 155 shares valued at $36,000 after buying an additional 111 shares. Hershey Financial Advisers LLC and Christopher J. Hasenberg Inc. have also made significant moves by establishing new positions in Apple stock, with Hasenberg increasing its holdings by 88.9%. Currently, institutional investors and hedge funds own about 60.41% of Apple’s overall shares.

About Apple

Apple Inc. specializes in designing, manufacturing, and marketing a wide range of electronic products, including smartphones, personal computers, tablets, wearables, and accessories. Key products include the iPhone, Mac, iPad, and a variety of wearables like the Apple Watch and AirPods.

Finance, Stocks, Analysis