uploads/2016/09/8-4.png

Are Apple’s Recent Stock Trends Giving Pause to Analysts?

By

Updated

Shareholder returns and stock trends

US-based (SPY) Apple (AAPL) generated investor returns of -7.6% in the trailing 12-month period and -3% in the trailing one-month period. In comparison, it generated returns of -3% in 2015 and -1.7% YTD (year-to-date). The company’s share price fell -1.1% in the trailing five-day period.

In comparison, Western Digital (WDC), Seagate Technology (STX), and Hewlett-Packard (HPQ)—Apple’s peers in the technology hardware and storage subsector—generated returns of -44.3%, -42.3%, and -33%, respectively, in 2015.

Article continues below advertisement

Moving averages

On September 8, 2016, Apple closed the trading day at $105.52. Based on this figure, here’s how the stock fared in terms of its moving averages:

  • 5.3% above its 100-day moving average of $100.25
  • 2% above its 50-day moving average of $103.46
  • 2.2% below its 20-day moving average of $107.87

MACD and RSI

The MACD (moving average convergence divergence) is the difference between a company’s short-term and long-term moving averages. Apple’s 14-day MACD is 1.5. This positive figure indicates an upward trading trend.

The company’s 14-day RSI (relative strength index) is 59, which shows that its stock has been somewhat overbought. Generally, if an RSI is above 70, it indicates that a stock has been overbought. An RSI figure below 30 suggests that a stock has been oversold.

Analyst recommendations

Of the 52 analysts covering Apple’s (AAPL) stock, 44 have given it “buy” recommendations, three have given it “sell” recommendations, and five have given it “hold” recommendations.

The analyst stock price target for the company is $123, with a median target estimate of $120. Apple is trading at a discount of 16.7% to its median estimate.

Advertisement

More From Market Realist