Home / Stocks / Apple Inc. (AAPL): An Opportunity for Fundamental Investors?

Apple Inc. (AAPL): An Opportunity for Fundamental Investors?

Shares of Apple Inc. (NASDAQ:AAPL) recorded -0.04% loss during trading session on April 12th, 2019. The script traded as low as $196.21 and last traded at $198.87. 27.72 million shares changed exchanged hands during trading, an increase of 3.29% from the 30-day average session volume of 28.66M shares. The firm had previously closed at $198.95. The company has $4.68B outstanding shares, a price-to-earnings ratio of 16.66, price-to-earnings-growth ratio of 3.56and a beta of 1.13. The company has a RSI of 71.24, ATR of 3.51 and a volatility of 1.68% this week. AAPL has a 52 week low price of $142.00 and a 52 week high price of $233.47.

Investors have identified the tech company Apple Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 931.49B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Apple Inc. (AAPL) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For AAPL, the company has in raw cash 44.77 billion on their books with 21.74 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 140.83 billion total, with 255.83 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.

AAPL were able to record 23.34 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 18.86 billion. In cash movements, the company had a total of 26.69 billion as operating cash flow.

Potential earnings growth for Apple Inc. (AAPL)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Apple Inc. recorded a total of 84.31 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.05% coming in sequential stages and their sales for the third quarter increasing by 0.25%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 52.28 billion trying to sell their products during the last quarter, with the result yielding a gross income of 32.03 billion. This allows shareholders to hold on to 4.68B with the revenue now reading 4180 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (2.10 cents a share).

Is the stock of AAPL attractive?

Having a look at the company’s valuation, the company is expected to record 12.72 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AAPL sounds very interesting.

In related news, Senior Vice President, CFO Maestri Luca sold 51,138 shares of the company’s stock in a transaction that recorded on April 5th, 2019. The sale was performed at an average price of 196.61, for a total value of 10,054,242. As the sale deal closes, the Director Maestri Luca now sold 1,521 shares of the company’s stock, valued at 255,087. Also, Principal Accounting Officer KONDO CHRIS sold 3,408 shares of the company’s stock in a deal that was recorded on November 19th, 2019. The shares were sold at an average price of 190.00 per share, with a total market value of 8,940. Following this completion of acquisition, the Senior Vice President now holds 14,194 shares of the company’s stock, valued at 3,235,664. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.08%.

15 out of 39 analysts covering the stock have rated it a Buy, while 17 have maintained a Hold recommendation on Apple Inc. stock. 0 analysts has assigned a Sell rating on the AAPL stock. The 12-month mean consensus price target for the company’s shares has been set at $190.94.