Bullish option flow was detected in AAPL stock on November 17, 2021.
Apple options regain top spot in options volume as shares lift on buyback. Today is the first time in nearly 3 weeks that Apple options lead all other single stock classes.
AAPL Stock Option Flow
Make sure to review this lesson on option flow so that you understand the image above.
A whopping $13.77 million in bullish option flow occurred on November 17, 2021.
Apple able to repurchase 3%-4% of shares/year until end of 2026, says Bernstein
On November 17, 2021, Bernstein analyst Toni Sacconaghi notes that while Apple’s EPS has been strong over the last 8 years, the company has not benefited from operating leverage. Share buybacks and a lower tax rate have been key drivers of EPS growth, adding 400bps-600 bps and 200 bps per year respectively, he adds. “Incredulously, strong buybacks could continue for another 15 years,” Sacconaghi says if Apple decided it was comfortable taking on leverage. His analysis suggests that Apple is likely to be able to continue repurchasing about 3%-4% of its shares per year until the end of 2026 while growing its dividend per share by 10% annually without taking on net debt on its balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity. – at which point, Apple will have likely repurchased about 15% of its current shares outstanding. Apple’s ongoing buyback program provides a relatively clear path to high single-digit EPS growth or better for the next five years, assuming its hardware revenues do not decline and its service segment grows at historical mid-teens, Sacconaghi contends. The analyst has a Market Perform rating and a price target of $132 on the shares.
Holiday demand looks robust for Apple iPhone 13, says Wedbush
On November 16, 2021, Wedbush analyst Daniel Ives says that heading into Black Friday, he continues to see delivery times for Apple’s iPhone 13 Pro lengthen as he estimates right now demand is outstripping supply by roughly 15% heading into this holiday season. Despite the chip shortage and Rubik’s Cube logistics that Apple is dealing with, Ives is seeing “tremendous demand trends” both in the U.S. and China for iPhone 13, which is a positive sign that Apple could exceed selling 80 million iPhone units in the quarter with stronger Pro versions driving higher ASPs. The analyst estimates that Apple is on pace to sell about 40 million iPhones between Black Friday and Christmas, which would be record holiday pace for the company despite the lingering chip shortage limiting iPhone supply globally by roughly 10 million units based on his analysis. Ives has an Outperform rating and a price target of $185 on the shares.
VIDEO Why Apple Is A Buy? Apple (AAPL) Stock Analysis & Price Target
Investing With James give his opinion on AAPL stock on November 16, 2021.
VIDEO Apple Stock Price Target | Stock to BUY NOW? | AAPL Stock Analysis | Tech Stocks
Everything Money gave their opinion on AAPL stock in mid-October 2021.
AAPL stock technical analysis
The rising large players volume looks awesome and we had a Pocket Pivot signal (blue dot) on November 17, 2021. The long and short-term trends are both positive. This is looking good! AAPL has an average technical rating and also the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when AAPL stock is a good entry.
