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

On December 5, 2024, Bank of America raised its target price for Apple Inc. (NASDAQ:AAPL) to $256.00, expressing confidence in the company's stock performance. In their report, they maintained a buy rating for the technology giant, indicating positive expectations for the future.

Other analysts have also provided updates on Apple's stock. Maxim Group increased their target price from $203.00 to $215.00 on November 1st and assigned a "hold" rating. Meanwhile, JPMorgan Chase & Co. kept an "overweight" rating, suggesting a target price of $265.00 in a report issued on September 10th. Wedbush also expressed a positive outlook, retaining an "outperform" rating with a target price of $300.00 as of November 29th. In contrast, Moffett Nathanson lowered their target price to $202.00, rating the stock as "neutral" on November 19th, while New Street Research reiterated a neutral stance with a $225.00 target on September 25th.

In total, out of various analysts, two have given the stock a sell rating, twelve have provided a hold rating, twenty-two have issued buy ratings, and one has assigned a strong buy rating. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" alongside a consensus price target of $235.68.

Current Stock Performance

As of the latest trading session, Apple shares opened at $243.01, and the company boasts a market capitalization of $3.67 trillion. Its price-to-earnings (P/E) ratio stands at 39.97, while the P/E growth ratio (P/E/G) is at 2.35. The stock's beta is 1.23, reflecting its volatility compared to the market. Apple reported a 12-month low of $164.07 and a high of $244.11. Additionally, its fifty-day and 200-day moving averages are $229.92 and $220.90, respectively.

Apple's earnings announcement on October 31st revealed earnings per share (EPS) of $1.64, surpassing the consensus estimate of $1.60 by $0.04. The company demonstrated a remarkable return on equity of 152.94% and maintained a net margin of 23.97%. In the reported quarter, revenue reached $94.93 billion, exceeding predictions of $94.52 billion, and marking a 6.1% increase from the previous year's quarter. Analysts anticipate that Apple will report an average EPS of 7.43 for the current fiscal year.

Dividends and Insider Activity

Recently, Apple announced a quarterly dividend of $0.25 per share, payable to shareholders on November 14th. This translates to an annual dividend yield of 0.41%, and the company's payout ratio is currently at 16.45%.

In insider trading news, Chris Kondo, an insider, sold 4,130 shares of Apple on November 18th at an average price of $228.87, totaling $945,233.10. This sale resulted in a 21.13% reduction in Kondo's ownership in the company. Additionally, CFO Luca Maestri sold 59,305 shares for $13,433,768.60 on October 4th, marking a 35.49% decrease in his stake. Over the last quarter, insiders collectively sold 408,170 shares valued at approximately $92,007,745.

Institutional Investment Trends

Several institutional investors have recently adjusted their positions in Apple. Bull Oak Capital LLC significantly increased its holdings by 252.3% in the third quarter. Other firms like Hershey Financial Advisers LLC and Christopher J. Hasenberg Inc. also made new acquisitions or increased existing positions. It is noteworthy that institutional investors and hedge funds hold about 60.41% of Apple's shares.

Overview of Apple Inc.

Apple Inc. is renowned for designing, manufacturing, and marketing a wide range of consumer electronics including smartphones, personal computers, tablets, wearables, and accessories. The company's flagship products include the iPhone, Mac computers, iPad tablets, and several accessory lines such as AirPods, Apple Watch, and various smart home products.

Apple, Stock, Analysts