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Apple: Institutions Locking Their Profit; Should You Worry?

Published 11/21/2012, 04:11 AM
Updated 02/02/2022, 05:40 AM
Tech Sector giant is facing huge pressure from bears who are selling the stock as there is no tomorrow. However according to Morgan Stanley (MS) analysts they are not buying into apple bear trend will continue much longer because company’s issues in relation to its product supplies and as well as margins will be sorted soon.

According to Wall Street journal’s report Google’s (GOOG) new mapping application will work on apple I phones, ipads, and Google is planning to file this to iTunes store.

Company has paid its second dividend payment of $2.5 per share or $2.5 billion dollar for its 935 million outstanding shares However, as Apple (AAPL) is the most widely held stock by institutions and is part of over 800 hedge funds so it is believed that recent sell off is more of locking in profit by hedge funds as global turmoil putting pressure on indices. Therefore, the recent sell-off can be blamed to this as fundamentals are still looking strong for the company specially with upcoming holiday season where Apple has created new market for itself by launching mini iPad and smart money is still after this stock.
APPLE - Daily
Institutional Holders
Apple is owned by 2,422 institutions which means 67.12% of shares are owned by institutional investors according to Reuters data.

Analyst Recommendations
According to Reuters there are 26 buys, 23 outperform, 5 hold, 1 underperform and 1 sell.

Technical Analysis

Comments
Apple has broken some serious support levels so far however long term trend for the stock is up. It seems like bears are finally giving up and below demand level can work as we have gap up in opposite direction of the trend which is usually sign for reverse of downward trend.

52 weeks range
705.07 High -363.32 Low

Average Volume
27,003,302

Support and Resistance zones
Demand Zone 1 506.46-487.73 (Aggressive Investor)
Demand Zone 2 442.25-457.88 (Conservative Investor)

Resistance Zone 1 589.59-579.10 (Aggressive investor)
Resistance Zone 2 641.26-654.00 (Conservative investor)

DISCLOSURE AND DISCLAIMER: The Above Is For Informational Purposes Only And Not To Be Construed As Specific Trading Advice. Responsibility For Trade Decisions Is Solely With The Reader.

By Naeem Aslam

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