13 November, 2019 (16:00:00 EST)

Apple increases strengthening above moving average price, issued 52 new patents


Apple Inc. (NASDAQ:AAPL), the NASDAQ's largest Computer integrated systems company by market cap, has increased 3.0c (0.01%) to trade at $US261.99 at 10:42 am Wednesday. Compared with the NASDAQ-100 Index which fell 8.0 points (0.1%), the relative price increase was 0.1%. The 200-day Moving Average Price (MAP) is $US202.16, up from $US201.67 on Tuesday. The price to MAP ratio is 1.3. There were 2,950,177 shares worth $US772.9 million traded today.

APPLE DIVIDENDS
The shares increased 1.0% in the 4 trading sessions since the ex-dividend date of November 07. The company paid a dividend of 77.0c per share. Based on dividends of $US3.04 per share for the trailing twelve months and the last price of $US261.99 the dividend yield is 1.2%.

TODAY'S NEWS
INSTITUTIONAL BUYING
Apple (NASDAQ:AAPL) institutional shareholder Victory Capital Management Inc. (CIK:0001040188) bought 4,054,793 shares in the quarter ended September 30, 2019 worth $US905.4 million at an estimated Volume Weighted Average Price (VWAP) of USD209.5. At the end of the quarter Victory Capital Management Inc. held 4,364,836 shares worth $US914.4 million.

INSTITUTIONAL SELLING
Apple (NASDAQ:AAPL) institutional shareholder Altshuler Shaham Ltd (CIK:0001324290) sold 915,543 shares in the quarter ended September 30, 2019 worth $US204.4 million at an estimated Volume Weighted Average Price (VWAP) of USD209.5. At the end of the quarter Altshuler Shaham Ltd held 4 shares worth $US838. The net decrease in holdings over the last year was 28 shares (88% of the shares held a year ago).

PATENT
Apple (AAPL) has been issued 52 new patents by the USPTO and EPO.

To view more details on these Patents, click here

Stock Summary
Today's close (USD)261.99
52-Week Range (USD)139.9-262.8
SectorComputer Integrated Systems sector
Shares Outstanding4,443,265,000
Market Cap$US1,164.1 billion

Highlights in today's Report:

SECTION 1 TODAY'S AGGREGATE VOLUMES AND PRICES

SECTION 2 TODAY'S BULLISH SIGNALS

SECTION 3 TODAY'S BEARISH SIGNALS

SECTION 4 RELATED NEWS

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US261.99):

SECTION 5 THE PAST WEEK

SECTION 6 ONGOING BULLISH PARAMETERS

SECTION 7 ONGOING BEARISH PARAMETERS

SECTION 8 REPORTED BUYING AND SELLING

SECTION 9 SUMMARY FINANCIALS

SECTION 10 CORPORATE PROFILE

SECTION 1 TODAY'S AGGREGATE VOLUMES AND PRICES

[Volume Index or VI in brackets; 1 is average]
+ Nasdaq: AAPL.NASDAQ 2,950,177 [VI of 0.1] volume 98.97% of aggregate. Price: $US261.99.
+ Xetra: APC.ETR 30,593 [VI of 0.9] volume 1.03% of aggregate. Price: EUR238.15. Using the current exchange rate of EUR1 equals 1.1035USD, The shares are at a 0.3% premium to the close price on Nasdaq.
+ Aggregate volume: there were 3 million shares of Apple worth $US781 million traded today. The aggregate volume was 0.1 times average trading of 30.3 million shares.

SECTION 2 APPLE BULLISH SIGNALS

2.1 Undervaluation [compared with sector average]:
Earnings Yield
+ Earnings yield of 4.6% is 2.4 times the 10-year bond yield of 1.95%.
Price/Earnings/Growth
+ Price/Earnings/Growth of 0.7.
+ The price earnings ratio of 21.8 divided by annual growth in EPS (FY2018 vs FY2017) of 29.6% corresponds to an attractive P/E/G of 0.7 times ; being less than the value benchmark of 1.0.
Dividend Yield
+ The relative yield of AAPL, defined by its yield of 1.2%, divided by average yield of dividend yielding stocks in the NASDAQ-100 Index of 1.0% is 119.6%. This suggests Apple stock is undervalued in dividend yield terms.

2.2 Short Selling:
+ The current short volume equalled its own historical average of 0.1%.

2.3 Uptrend:
Price/Moving Average Price and MACD:
+ The Price/MAP of 1.3 for AAPL is higher than the Price/MAP for the NASDAQ-100 Index of 0.98.
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 255.82 minus the 26-day EMA of 247.05 is positive suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.
+ The price to 50-day EMAP ratio is 1.1, a bullish indicator. In the past 50 days this ratio has exceeded 1.1, six times suggesting further upside. The 50-day EMAP has increased to $US236.42. An increase is another bullish indicator.
+ The price to 200-day MAP ratio is 1.3, a bullish indicator. The stock is trading above both its MAPs and the 50-day MAP of $US233.16 is higher than the 200-day MAP of $US202.16, a bullish indicator. The 200-day MAP has increased to $US202.16. An increase is another bullish indicator.
Past Week:
+ Apple Inc. is placed 538/2128 in BuySellSignals' ranking of NASDAQ performers in the past week, a percentile ranking of 75.
Past Month:
+ Rises to Falls: in the past month the number of rises outnumbered falls 15:8 or 1.9:1.
+ The present value of $US1,000 (PV1000) invested one month ago in Apple is $US1,117, comprising a capital gain of $US114 and dividend reinvested of $US3.
PV$10001-week1-month1-year
AAPL.NASDAQ1,0251,1171,404
NASDAQ-100 Index1,0081,0481,209
Relative Strength (6 months):
+ In the NASDAQ market of 2,146 stocks traded today, the stock has a 6-month relative strength of 93 which means it is beating 93% of the market.
+ A price rise combined with a high relative strength is a bullish signal.

2.4 High Price Performance Indicators and rank of Apple in the NASDAQ market:
DescriptionAAPL ValueRank In Market
MCap$US1,164.1 billionIn Top 1%
Today's Trading Turnover$US772.9 millionIn Top 1%
Price/MAP2001.3In Top 9%
Price/MAP501.12In Top Quartile
Volatility %0.7In Top Quartile

SECTION 3 APPLE BEARISH SIGNALS

3.1 Overvaluation [compared with sector average]:
Price/Earnings
+ Price/Earnings of 21.8 [19.6].
MCap/Total Assets
+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 3.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

3.2 Overvaluation Indicators and rank of Apple in the NASDAQ market:
DescriptionValueRank In Market
P/E * P/NTA236.86In Bottom 8%
Price to Sales4.4In Bottom Quartile

Overbought/Bearish Signals:
+ The Relative Strength Index (RSI) of 80.0 has penetrated the overbought line of 70, suggesting the price gain of 80.0% in the last 14 days is unusually high.
+ The stock is overbought according to the Williams % R indicator of -3.0, suggesting the price is close to its 14-day high of $US262.79.
+ The Stochastic indicator of 98.0 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

SECTION 4 APPLE RELATED NEWS

Corporate Bonds

+ Apple 5-year bond YTM tumbles by 20.8 basis points
Apple bond (CUSIP: 037833AZ3) price has increased $US1.03 (or 1.0%) from its last trading session of Monday November 11, 2019 to close at $US101.96. The bond matures in 5 years and 3 months; its yield to maturity (YTM) has decreased by 20.8 basis points from 2.31% to 2.1%.

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US261.99):

SECTION 5 THE PAST WEEK

5.1 Snapshot: Apple stock was up $US5.60 or 2.2% in the past week. Volume in the week was 0.7 times average trading of 152.4 million shares. It outperformed the NASDAQ-100 index in 3 out of 5 days.
DayAppleClose price [USD]Price change %Relative change %Comment
TuesdayDecreases261.96-0.1-0.4Steepest Fall
MondayDecreases262.20.81.0Price fall on falling relative strength
FridayFalls 0.7% from 14-day high260.140.3-0.2Price fall on falling relative strength
ThursdayHits year-high 15th time in three months259.431.20.9Top Rise
WednesdayFalls for a second consecutive day256.470.040.2Price fall on slipping relative strength

5.2 Stock Buzz: Past Week
News DateHeadlinePublisher
Nov 12Apple, Goldman Sachs Under Scrutiny For Alleged Discrimination In Apple Card AlgorithmMSN
Nov 12Apple Pushes Into Augmented And Virtual Reality DevicesMiddle East North Africa Financial Network
Nov 12Apple TV+ in talks to sign production deal with former HBO chiefThe Business Journals
Nov 12Apple s Partnership With America s Biggest Medical System Is Up and RunningThe Motley Fool Canada on MSN.in
Nov 12American Research & Management Co. Sells 795 Shares of Apple Inc. (NASDAQ:AAPL)modernreaders.com
Nov 12Insight 2811 Inc. Has $1.07 Million Stock Holdings in Apple Inc. (NASDAQ:AAPL)theenterpriseleader.com
Nov 11Scott Forstall, senior vice president, iOS Software, Apple - rising stars in wirelessFierce Wireless
Nov 11Apple TV+ Isn t Worth $5 per Month, but It Doesn t MatterNasdaq
Nov 11Experts Debate If Apple s Goldman Credit Card Has Sexist Credit ChecksYAHOO!
Nov 07Apple Inc. (NASDAQ:AAPL)24/7 Wall St
Nov 07Analyst Thinks Apple Has More Room to RunSchaeffersResearch.com
Nov 07Apple Could Help Goldman Sachs Grab a Piece of This $18.5 Billion MarketThe Motley Fool on MSN.in

5.3 Volatility:
+ Apple is at a discount of 0.3% to its 12-month high of $US262.79 on November 12. It is also at a premium of 87.3% to the 12-month low of $US139.90 on January 03.

SECTION 6 ONGOING BULLISH PARAMETERS

6.1 Performance:
+ Return on Capital Employed 29.3% [29.1%].

6.2 Growth:
Quarterly Trend in Revenue, Net Profit and Net Profit Margin:
+ Net Profit margin is positive and has seen consecutive rises in recent quarters. [All figures in %]
Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Jun 19 [Q3]-7.2-13.187.7
Mar 19 [Q2]-31.2-42.119.9

+ Year-on-Year Earnings Growth of 29.6%.

6.3 Low Debt Indicators:
+ The debt to equity ratio of 11.2% is under a safe benchmark figure of 50%. However, it has deteriorated from 8.9% a year ago.
+ Total Liabilities/EBITDA of 3.5 is comfortably below the Joseph Piotroski benchmark of 5.
DescriptionValueRank In Market
Debt to Equity0.1In Top Quartile


6.4 High Performance Indicator and rank of Apple in the NASDAQ market:
DescriptionValueRank In Market
Return on Assets [ROA] %16.3In Top 9%


6.5 Past 5 years Annual EPS growth:
Annual ReportEPS ($US)Growth %
201812.0129.6
20179.2711.0
20168.35-10.0
20159.2843.0
20146.4913.5
Average Annual Compounded rate of growth in EPS for the 5 years was impressive at 16.0%. There have been four rises and one decline in the past 5 years.

6.6 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 25%. The Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in AAPL would have produced a return of 39.9%.
AAPLClose (USD)Dividends (USD)Capital Gain / (Loss) %% YieldAnnual Return %
Nov 13261.993.0438.31.639.9
1 Yr ago189.382.8211.71.713.4
2 Yrs ago169.542.46642.466.4
3 Yrs ago103.352.23(4.5)2.1(2.4)
4 Yrs ago108.232.035.927.9

Close 5 years ago $US102.22

6.7 Increased VWAP
Past five years, 12 months ended Nov 13 (USD)
YearHigh PriceVWAPLow Price
2019262.79189.74139.9
2018229.21184.29146.42
2017170.45137.8899.42
2016112.897.9984.57
2015124.11110.3185.61
In the past five years Volume Weighted Average Price (VWAP) has increased by 72.0% to $US189.74. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

6.8 Increased Average Daily Turnover
Past five years, 12 months ended Nov 13 (USD billion)
YearAverage Daily Turnover
20195.8
20185.8
20173.7
20163.9
20155.7
In the past five years, average daily share turnover has increased 2.2% to $US5.8 billion. This suggests increased liquidity.

6.9 Decrease in Insider Selling
In the past 5 years a total of 6,264,951 Apple shares worth $US913.1 million were sold by insiders. Based on a dynamic start date of 5 years ago, insider selling has averaged 1,252,990 shares per year. In the past year, insiders sold 635,012 shares, a decrease of 36.9% from the previous year.

SECTION 7 ONGOING BEARISH PARAMETERS

7.1 Past 4 Quarters Sequential EPS growth averaged 3.9%:
Quarterly ReportEPS ($US)Growth %
Q3/20192.2-10.9
Q2/20192.47-41.5
Q1/20194.2243.5
Q4/20182.9424.6
The most recent quarter (Q3/2019) showed a decline of 10.9% in sequential growth of Quarterly EPS. There have been two rises and two declines in the past 4 quarters. Average quarterly growth in the past 4 quarters was muted at 3.9%.

7.2 Declining ADVT past five years
Avg. Daily Volume Traded 12 months ended Nov 13, million shares
YearADVT
201930.5
201831.1
201726.8
201639.2
201550.9
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 40.1% to 30.5 million shares.

SECTION 8 APPLE REPORTED BUYING AND SELLING

8.1 Institutional Buying and Selling Quarter Ended June 30
Total reported Institutional buying = 77,740,516 shares
Total reported Institutional selling = 101,855,219 shares
Net reported institutional selling = 24,114,703 shares

8.2 Reported Holdings of Institutions as at Jun 30, 2019
Total = 2,606,811,787 shares
Market Value = $US512.4 billion
Institutions hold 58.7% of Issued Shares.

SECTION 9 APPLE SUMMARY FINANCIALS

9.1 Dividend History
Trailing 12 months dividend for the 12 months ended November 13 has improved from $US2.03 in 2015 to $US3.04 in 2019; there were no declines in the past 5 years. Dividends were up 7.8% for the 12 months ended November 13 from $US2.82 in 2018 to $US3.04 in 2019.

9.2 Financials Summary
Year endedSep 2018Sep 2017Sep 2016
Sales (USD B)265.6229.2215.6
Pretax (USD B)72.964.161.4
Net (USD B)59.548.445.7
EPS (USD)12.019.278.35
+ Net profit was up 23.1% from US$48.4 billion in 2017 to US$59.5 billion in 2018.
+ Earnings Per Share (EPS) was up 29.6% from $US9.27 to $US12.01.

9.3 Quarterly Report: Key Parameters
Quarterly Report Analysis Q3 2019: Apple EPS falls 11%

Apple (NASDAQ:AAPL), announced EPS of $US2.2 for the quarter-ended 29 June 2019 [Q3/2019], down 10.9% sequentially from $US2.47 in the previous quarter [Q2/2019].

Quarter-ended29 Jun [Q3/2019]30 Mar [Q2/2019]29 Dec [Q1/2019]
EPS, $US2.22.474.22
Sequential growth in EPS %-10.93-41.4743.54
Revenue, $US billion53.858.084.3
Sequential growth in Revenue %-7.25-31.1934.04
Net Profit, $US billion10.011.620.0
Sequential growth in Net Profit %-13.12-42.0941.35

Compared with the previous corresponding period [PCP; Q3/2018], year-over-year [y.o.y.] EPS was down 6.8%, Revenue was up 1% and Net Profit was down 12.8%.
Quarter-ended29 Jun [Q3/2019]30 Jun [Q3/2018]
EPS, $US2.22.36
PCP growth in EPS %-6.7840.48
Revenue, $US billion53.853.3
PCP growth in Revenue %1.0217.3
Net Profit, $US billion10.011.5
PCP growth in Net Profit %-12.832.14

Major changes compared with previous corresponding period [Year-on-Year]:
Unfavourable Changes:
- Net profit down 12.8% from $US11.5b to $US10.0b
Note:
- Total revenue steady at $US53.8b
- Tax expenses to Sales down from 17.4% to 16.3%

9.4 Annual Report: Key Parameters
FY2018 Annual Report: Apple Net Profit up 23.1%

Release Date: November 06, 2018
Apple (NASDAQ:AAPL) reported net profit for the year-ended 29 September 2018 of $US59.5b, up 23.1% from $US48.4b in the previous year. Earnings per share (EPS) were up 29.6% from $US9.27 in FY2017 to $US12.01 in FY2018.

Major changes compared with previous year:
Favourable Changes:
- Net profit up 23.1% from $US48.4b to $US59.5b
- Total revenue up 15.9% from $US229.2b to $US265.6b
- EPS up 29.6% from $US9.27 to $US12.01
- EBIT to total assets up from 17.1% to 19.9%
- Total revenue to total assets up from 0.6 to 0.7
- Sales and marketing expenses to Revenues down from 6.7% to 6.3%
- Total current assets to Total Assets up from 34.3% to 35.9%
- Current Debtors to Total Assets up from 9.5% to 13.4%
- Fixed Assets to Total Assets up from 9% to 11.3%
- Total Liabilities to EBITDA of 3.5 compares favourably with the Joseph Piotroski benchmark of <5. This ratio has improved by 5.6% from the previous year's ratio of 3.8.
- Total Liabilities to Operating Cash Flow of 3.3 compares favourably with the Joseph Piotroski benchmark of <4. This ratio has improved by 11.2% from the previous year's ratio of 3.8.
Unfavourable Changes:
- EBIT Margin down from 28.0% to 27.4%
- Total liabilities to Total assets up 10.9% from 0.6 to 0.7
- Current ratio down 12.5% from 1.3 to 1.1
- Working capital to total assets down from 7.4% to 4.0%
- Retained earnings to total assets down from 26.2% to 18.3%
- Total non-current assets to Total Assets down from 65.7% to 64.1%
- Long-term investments to Total Assets down from 51.9% to 46.7%
- Net tangible assets per share down 16% from $US25.52 to $US21.43
Note:
- Cost of Goods Sold to Revenues up from 61.5% to 61.7%
- Profit before tax to Revenues down from 28% to 27.4%
- Tax expenses to Revenues down from 6.9% to 5%

Annual Report [Year-on-year comparison: 2018 vs 2017]
Company Name : Apple Inc. (AAPL)   
September 2920182017Change
Description$US m$US m(%)
Total Revenue265,595229,234Up 15.9
EBITDA72,90364,089Up 13.8
EBIT72,90364,089Up 13.8
Pre-Tax Profit/(Loss)72,90364,089Up 13.8
Profit/(Loss) after Tax59,53148,351Up 23.1
Working Capital14,47327,831Down 48
Current Assets131,339128,645Up 2.1
Current Liabilities116,866100,814Up 15.9
Shareholders' Funds107,147134,047Down 20.1
Total Liabilities258,578241,272Up 7.2
Total Assets365,725375,319Down 2.6
Current Debt11,96411,977Down 0.1
Total Debt11,96411,977Down 0.1
Operating Cash Flow77,43464,225Up 20.6
Net Assets107,147134,047Down 20.1
Net Tangible Assets107,147134,047Down 20.1

Year-on-year comparison of Per Share figures
September 2920182017Change (%)
Description$US $US  
EBIT14.712.3Up 19.8
EBITDA14.712.3Up 19.8
Cash13.314.1Down 6.1
Shareholders' Funds21.625.7Down 15.8
Total Liabilities52.246.2Up 12.8
Total Assets73.871.9Up 2.6
Current Debt2.42.3Up 5.2
Total Debt2.42.3Up 5.2
Net Tangible Assets21.425.5Down 16
EPS Final129.3Up 29.6
    EPS Growth Factor*1.28  
* EPS Growth Factor = EPS growth / Net Profit growth

Year-on-year comparison of Performance Ratios
September 2920182017Change (%)
Return on Equity (%)55.636.1Up 54
Return on Assets (%)16.312.9Up 26.4
Total debt to net tangible assets (%)11.28.9Up 25.8
Total Liabilities to EBITDA3.53.8Down 5.6
Total Liabilities to Operating Cash Flow3.33.8Down 11.2
Debt/Equity0.1 - na
Total Liabilities/Total Assets0.70.6Up 10.9
Current Ratio1.11.3Down 12.5
Common Size Ratios by Assets %   
Total non-current assets to Total Assets 64.1 65.7 Down 2.5
Long-term investments to Total Assets 46.7 51.9 Down 10.0
Total current assets to Total Assets 35.9 34.3 Up 4.7
Current Debtors to Total Assets 13.4 9.5 Up 41.0
Fixed Assets to Total Assets 11.3 9.0 Up 25.5
Common Size Ratios by Revenues %   
Cost of Goods Sold to Revenues 61.7 61.5 Up 0.3
Profit before tax to Revenues 27.4 28.0 Down 2.0
Sales and marketing expenses to Revenues 6.3 6.7 Down 5.4
Tax expenses to Revenues 5.0 6.9 Down 27.2


Five-year record of growth and performance:
In the last 5 years Total Revenue averaged $US225.4B, EBITDA averaged $US64.9B and Net Profit averaged $US49.3B. Compound Annual Growth Rate (CAGR) averaged 9.2% for Total Revenue, 10.0% for Net Profit and 7.8% for EBITDA.
DescriptionAnnual ($US B)5-year Avg ($US B)5-year CAGR %
Total Revenue265.6225.49.2
EBITDA72.964.97.8
Operating Profit72.964.97.8
Net Profit59.549.310

Five-year record of EBITDA, Operating Profit, Net Profit, ROE, ROA and ROCE
In 2018 Net Profit Margin of 22.4% was above its 5-year Avg of 21.8% (All Figures in %)
Description20185-year Avg
EBITDA Margin27.428.8
Operating Profit Margin27.428.8
Net Profit Margin22.421.8
Return on Equity55.641.5
Return on Assets16.315.8
Return on Capital Employed29.328.9

SECTION 10 CORPORATE PROFILE

10.1 Activities
Apple Inc. designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers.

10.2 Top Management
The chairman is Arthur D. Levinson, the chief executive officer is Timothy D. Cook and the chief financial officer is Luca Maestri.

10.3 Issued Capital and MCap
Based on 4,443,265,000 issued shares the market capitalisation is $US1,164.1 billion.

10.4 Vanguard Total World Stock ETF 7627:
The stock was one of 7627 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 40,741 shares in the period Jul 31, 2019 to Aug 31, 2019 worth $US-8,377,348 at an estimated Volume Weighted Average Price (VWAP) of $US205.6245. As at Aug 31, 2019, the Vanguard Total World Stock ETF held 1,478,517 shares worth $US304,019,319 or 1.85% by value of the ETF's portfolio [Ranked 2 out of 7627 by value and 1 out of 671 for NASDAQ].

COMPANY IDENTIFIERS
Contact: +1 408 996-1010
Physical Address: 1 Infinite Loop, Cupertino, CA,95014
State/Province/Country: CA, United States
Country of Incorporation: United States
Industry [NAICS]: 334220
Exchange: NASDAQ

Economic Sector: Technology
Business Sector: Technology Equipment
Industry Group: Computers, Phones & Household Electronics
Industry: Computer Hardware
Activity: Computer Hardware - NEC*
* NEC: Not elsewhere classified

ISIN: US0378331005
O:AAPL; AAPL.O
PermID: 4295905573
RIC: AAPL.O
CIK: 320193
CUSIP: 037833100

Apple Inc, Apple, Inc

For comprehensive research on Apple Inc., including details from the latest Annual Report and extensive financial data, please search by Company Name on source name "News Bites Stock Review" on Lexis-Nexis platforms.

Source: www.BuySellSignals.com