Illiquidity and stock returns: Apple Inc. (NASDAQ:AAPL) released a new TV spot Thursday pointing out the iPhone’s security

Apple (AAPL) released a new TV spot Thursday pointing out the iPhone’s security and privacy features and laying out thinly veiled criticisms of rivals like Google’s (GOOG, GOOGL) Android operating system and Chrome browser and Amazon (AMZN).

The one-minute ad features a number of scenarios showcasing how Apple says it keeps users’ data safe.

There’s a man who tells everyone on a bus that he browsed for eight divorce attorneys last night, a woman having a conversation with her friend at work saying that she hates one of her coworkers, another woman telling a waitress that she purchased a pregnancy test, and a man who continuously shouts his heart rate.

The thrust of the ad is that Apple’s technology keeps all of that data safe, while competitors’ don’t. Tech giants like Google may not exactly be sharing your information with the world in the same way Apple seems to say they do, but Apple is keen on making it clear that it doesn’t harvest user data to sell advertisements, and instead leans on its own hardware and services.

The purpose of the ad is similar to a massive billboard Apple put up near the Las Vegas Convention Center during CES 2019, which showcased an iPhone with bold text stating, “What happens on your iPhone, stays on your iPhone,” a play on the “What happens in Vegas, stays in Vegas,” tagline.

Apple’s iPhone security has been a major flashpoint for its relationship with the Department of Justice in the past. It was the phone’s encryption that saw investigators looking into the 2015 terror attack in San Bernardino to call on Apple to create a backdoor to hack the phone held by one of the shooters.

On 09-03-2k20 (Thursday) Shareholders tracking shares of Apple Inc. (AAPL) belongs to Technology sector and Consumer Electronics industry. AAPL flaunted -3.38% to reach at $126.96 during previous trading session. AAPL Inc. has a total market value of 2250.92B at the time of writing – representing $17.25B outstanding shares. Turning to other widely-considered trading data, this company’s half yearly performance is observed at 79.43%.

Volume Evaluation

The USA listed company saw a recent price trade of $126.96 and 40,145,899 shares have traded hands in the session. There are 161.82M shares which are traded as an average over the last three months period.

Many investors forget that one of the defining characteristics of the stock market is that it’s a market. Buyers and sellers help determine the price of each stock, and the more buyers and sellers a particular stock has interested in it, the more liquid the market will be. Liquidity can have a profound impact on just how violently stock prices can move in either direction, and the reasons have to do with the nature of the market in a stock’s shares.

Trading volume, or volume, is the number of shares or contracts that indicates the overall activity of a security or market for a given period. Trading volume is an important technical indicator an investor uses to confirm a trend or trend reversal. Volume gives an investor an idea of the price action of a security and whether they should buy or sell the security.

Performance Levels

Looking performance record on shares of Apple Inc. (AAPL) we observed that the stock has seen a move 151.25% over the last 52-week trading period. The stock generated performance of 63.07% tracking last 3 months. Investors will be anxiously watching to see if things will turn around and the stock will start gaining or losing momentum over the next few months. If we look back year-to-date, the stock has performed 78.99%. Shares are at 3.86% over the previous week and 19.82% over the past month.

Analyst Views:

Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $110.81. Analysts often put in a lot of work to study stocks that they cover. Wall Street analysts have a consensus recommendation of 2.20on this stock. This number falls on a one to five scale where a 1 would be considered a strong buy and 5 means a strong sell, 2 shows Buy, 3 Hold, 4 reveals Sell recommendation.

Volatility Insights

Watching some historical volatility numbers on shares of Apple Inc. (AAPL) we can see that the 30 days volatility is presently 2.90%. The 7 days volatility is 4.07%. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

The company has a beta of 1.26. 1.00 indicates that its price is correlated with the market. Less than 1.00 shows less volatility than the market. Beta greater than 1.00 indicates that the security’s price is theoretically more volatile than the market.

The Average True Range (ATR) value reported at 4.14. The average true range (ATR) is a technical analysis indicator that measures volatility by decomposing the entire range of an asset price for that period. A stock experiencing a high level of volatility has a higher ATR, and a low volatility stock has a lower ATR. The ATR may be used by market technicians to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.

Technical Considerations

Apple Inc. (AAPL) stock positioned 55.57% distance from the 200-day MA and stock price situated 20.17% away from the 50-day MA while located 5.79% off of the 20-day MA.

RSI value sited with reading of 54.55. Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.

Observing the Technical Indicators:

Apple Inc. institutional ownership is held at 62.30% while insider ownership was 0.07%. As of now, AAPL has a P/S, P/E and P/B values of 8.22, 39.95 and 31.36 respectively. Its P/Cash is valued at 24.20. The Company’s net profit margin for the 12 months at 0. Comparatively, the gazes have a Gross margin 38.20%.

Profitability ratios:

Looking into the profitability ratios of AAPL stock, an investor will find its ROE, ROA, ROI standing at 70.70%, 17.70% and 26.90%, respectively.

Earnings per Share Details of Apple Inc.:

The EPS of AAPL is strolling at 3.29, measuring its EPS growth this year at -2.60%. As a result, the company has an EPS growth of 12.46% for the approaching year.

Given the importance of identifying companies that will ensure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years.

The payout ratio shows the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company’s earnings. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow. The payout ratio is also known as the dividend payout ratio. The Company’s payout ratio was 23.60% and Price to free cash flow remained $39.04.

Vanessa Griffin

About Vanessa Griffin

My name is Vanessa Griffin I give an insight into the latest news hitting the business and Technology markets in Wall Street. I have been an independent financial adviser for over 10 years in the city and in recent years turned her experience in Technology and passion for journalism into a full time role. I have a strong preference for deep value plays and/or stocks with a strong track record of dividend growth. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I am an accomplished journalist who has a passion for travel. My desire to see the world has taken me to countries around the world and given me the opportunity to report for some of the top news organizations.

View all posts by Vanessa Griffin →