Rosenblatt Securities Reiterates “Sell” Rating for Apple (NASDAQ:AAPL)

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Apple (NASDAQ:AAPL)‘s stock had its “sell” rating restated by equities research analysts at Rosenblatt Securities in a research note issued to investors on Monday, Marketbeat Ratings reports. They currently have a $150.00 price objective on the iPhone maker’s stock. Rosenblatt Securities’ target price points to a potential downside of 25.46% from the company’s previous close.

The analysts wrote, “We believe there is less reward for owning Apple stock after the recent stock rebound from stock buybacks and stable second quarter guidance. We do not think Apple is a short (the company has plenty of cash and a meaningful stock buy back program), however, we believe Apple will face fundamental deterioration over the next 6-12 months. We downgrade and maintain our $150 price target. Adding to our Sell thesis, we believe new iPhone sales will be disappointing, iPad sales growth will slow in the second half of 2019, other product sales growth, such as the HomePod, AirPod and iWatch, may not be meaningful to support total revenue growth. After strong service revenue growth over the last 4-6 quarters and the launch of Apple Music and news, we believe service revenue growth will also decelerate.””

A number of other brokerages have also commented on AAPL. Piper Jaffray Companies boosted their price target on shares of Apple from $201.00 to $230.00 and gave the company an “overweight” rating in a research note on Wednesday, May 1st. Sanford C. Bernstein set a $190.00 price target on shares of Apple and gave the company a “neutral” rating in a research note on Wednesday, May 1st. Morgan Stanley boosted their price target on shares of Apple from $234.00 to $240.00 and gave the company an “overweight” rating in a research note on Wednesday, May 1st. Jefferies Financial Group boosted their price target on shares of Apple from $160.00 to $210.00 and gave the company a “hold” rating in a research note on Wednesday, May 1st. Finally, Loop Capital boosted their price target on shares of Apple to $190.00 and gave the company a “hold” rating in a research note on Wednesday, May 1st. Four investment analysts have rated the stock with a sell rating, nineteen have assigned a hold rating, twenty-four have issued a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $209.27.

Apple stock opened at $201.24 on Monday. The firm has a market cap of $924.31 billion, a P/E ratio of 16.90, a PEG ratio of 1.73 and a beta of 1.23. The company’s fifty day moving average is $191.56. The company has a quick ratio of 1.26, a current ratio of 1.32 and a debt-to-equity ratio of 0.85. Apple has a 12-month low of $142.00 and a 12-month high of $233.47.

Apple (NASDAQ:AAPL) last announced its quarterly earnings results on Tuesday, April 30th. The iPhone maker reported $2.46 EPS for the quarter, beating the Zacks’ consensus estimate of $2.37 by $0.09. The business had revenue of $58.02 billion during the quarter, compared to analyst estimates of $57.40 billion. Apple had a net margin of 22.12% and a return on equity of 51.29%. Apple’s quarterly revenue was down 5.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.73 EPS. On average, analysts anticipate that Apple will post 11.47 earnings per share for the current fiscal year.

Apple declared that its board has authorized a stock buyback plan on Tuesday, April 30th that authorizes the company to buyback $75.00 billion in shares. This buyback authorization authorizes the iPhone maker to reacquire up to 7.6% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

In other Apple news, COO Jeffrey E. Williams sold 56,411 shares of the company’s stock in a transaction dated Thursday, May 2nd. The shares were sold at an average price of $210.36, for a total transaction of $11,866,617.96. Following the sale, the chief operating officer now directly owns 151,187 shares of the company’s stock, valued at $31,803,697.32. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Arthur D. Levinson sold 35,000 shares of the company’s stock in a transaction dated Friday, May 3rd. The shares were sold at an average price of $210.86, for a total transaction of $7,380,100.00. Following the sale, the director now directly owns 1,168,283 shares in the company, valued at $246,344,153.38. The disclosure for this sale can be found here. 0.05% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Semmax Financial Advisors Inc. purchased a new stake in Apple during the fourth quarter valued at about $50,000. Contravisory Investment Management Inc. lifted its holdings in Apple by 30.6% during the fourth quarter. Contravisory Investment Management Inc. now owns 614 shares of the iPhone maker’s stock valued at $97,000 after purchasing an additional 144 shares during the last quarter. INR Advisory Services LLC purchased a new stake in Apple during the fourth quarter valued at about $124,000. CKW Financial Group lifted its holdings in Apple by 15.0% during the fourth quarter. CKW Financial Group now owns 807 shares of the iPhone maker’s stock valued at $127,000 after purchasing an additional 105 shares during the last quarter. Finally, Denali Advisors LLC lifted its holdings in Apple by 12.5% during the second quarter. Denali Advisors LLC now owns 900 shares of the iPhone maker’s stock valued at $178,000 after purchasing an additional 100 shares during the last quarter. 58.54% of the stock is currently owned by institutional investors and hedge funds.

Apple Company Profile

Apple Inc designs, manufactures, and markets mobile communication and media devices, and personal computers. It also sells various related software, services, accessories, and third-party digital content and applications. The company offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as iOS, macOS, watchOS, and tvOS operating systems.

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