Apple Inc. (NASDAQ:AAPL) Cheap Buybacks Possibly Closing as Stock Up Rapidly
As of Oct 25, based on real time quote by NASDAQ OMX, Apple Inc. (NASDAQ:AAPL) is at $533, 8.04 higher at 1.53 per cent; with previous close at $524.96; today's high at $533.44 and today's low at $522.45; 52 week high at 626.55 and 52 week low at 522.55.
Apple Inc. (NASDAQ:AAPL) at $533 had exceeded future price targets of 18 analysts as compiled by Philip Elmer-DeWitt of Fortune.
For the list of the analysts whose price targets of Apple Inc. (NASDAQ:AAPL) were "underwater" now see link here.
In a report from AppleInsider, it said that "window of opportunity for cheap buybacks closing" after Apple Inc. (NASDAQ:AAPL) stock had rapidly gone up after dipping below at $400 in the month of July.
The record setting release of the iPhone 5s and 5c in September and the release of new Macs, iPads, software and the availability of the OS X Mavericks in October had remarkably appreciated Apple's shares.
On Oct 28, Apple Inc. is scheduled to release its earnings report for the fourth quarter of its fiscal year.
Daniel Eran Dilger of AppleInsider wrote that the only reason Apple Inc. will not pursue its slated buyback programme is if the company predicts that its own stock would be dropping in the future or if Apple could not recognise "sufficiently cheap shares to buy."
There had been a lot of chances that Apple Inc. could have pursued its buyback programme during the times when AAPL shares had dramatically decreased. In June, Apple wobbled as stock price went down until its September quarter. During the transition from June to September quarter, there had been doubts that the company can introduce an all new product line-up. There had also been doubts that the market might turn back from Apple as the company makes a transition to iOS 7 in June.
But as Apple "rise again" in September, and with its recent products launched during the Oct 22 event, "there's good reason to believe the company has recognized the current quarter as being as a unique opportunity for buying back shares, one which might not every occur again at today's prices," Dilger wrote.
Apple now has $44 billion left of its buyback budget. This budget is scheduled to be spent before 2015 as per the terms and conditions of its buyback plan. Apple could either stop buying shares and let the terms expire. But Apple had already bought 36 million shares at an average price of $444 in July - an indication that the company had actually taken advantage of its low stock price during the previous months to buy up shares.