Paragon Cuts Apple Stake by 24.8% to $3.67M; Analysts Lift Targets to $305-$325
Paragon Capital Management cut its AAPL position by 24.8% to 14,423 shares worth $3.67M during Q3, representing 0.7% of its portfolio. Analysts at JPMorgan raised their target from $290 to $305 while Sanford Bernstein set a $325 target, keeping the average price target at $283.92.
1. Paragon Capital Management Reduces Apple Stake
Paragon Capital Management Ltd trimmed its holding in Apple Inc. by 24.8% during the third quarter, according to its latest Form 13F filing with the SEC. The fund sold 4,761 shares, leaving it with 14,423 shares of the iPhone maker. At the end of the period, its Apple position was valued at $3.673 million, representing approximately 0.7% of Paragon’s portfolio and ranking as its 20th largest holding.
2. Other Institutional Adjustments to Apple Positions
Several other institutional investors adjusted their Apple stakes in the third quarter. Triangle Securities Wealth Management increased its position by 22.9%, buying 5,700 shares to reach 30,601 shares valued at $7.792 million. Cape ANN Savings Bank added 1,766 shares (+5.4%) to hold 34,362 shares worth $8.75 million. Value Partners Investments Inc. acquired 743 shares (+21.3%), taking its total to 4,234 shares valued at $1.078 million. Alliance Wealth Advisors LLC added 57 shares (+0.3%) for a total of 17,100 shares worth $4.354 million, and Gilman Hill Asset Management LLC bought 2,613 shares (+12.7%) to hold 23,136 shares valued at $5.891 million. Institutional investors now own 67.73% of Apple’s stock.
3. Analysts Update Ratings and Price Targets
Wall Street brokerages have recently revised their views on Apple. Seaport Research Partners upgraded the stock to a strong-buy on October 1, while Weiss Ratings reaffirmed a buy (b-) rating on December 29. Phillip Securities downgraded Apple to a moderate-sell with a $200 target on September 11. JPMorgan Chase & Co. raised its target from $290 to $305 and maintained an overweight rating on October 31, and Sanford C. Bernstein set a $325 price target on November 3. Of the 37 analysts covering Apple, two rate it strong-buy, 22 rate it buy, 12 rate it hold and one rates it sell, resulting in an average consensus of Moderate Buy and a mean target of $283.92.
4. Recent Earnings and Dividend Developments
Apple reported third-quarter results on October 30, delivering earnings per share of $1.85 versus consensus of $1.74 and quarterly revenue of $102.47 billion versus expectations of $101.65 billion. Year-over-year revenue grew 8.7%, return on equity stood at 164.05%, and net margin was 26.92%. In the same quarter a year earlier, EPS was $1.64. Analysts project full-year EPS of 7.28. On November 13, Apple paid a quarterly dividend of $0.26 per share (annualized $1.04, yield 0.4%), with a payout ratio of 13.92%.