Apple Inc (NASDAQ:AAPL) Losing Institutional Investors to Google, Microsoft, Amazon in 5-Year Slump
Apple Inc (NASDAQ:AAPL) is losing institutional investors, and it's the only company that is currently in a 5-year-low based on stock ownership figures by banks, mutual funds, hedge funds and other major financial institutions.
Institutional ownership of large capital stocks is generally at high levels, except Apple Inc, according to a Morgan Stanley poll. Since 2009, Morgan Stanley has surveyed institutional ownership and found that the top 30 investors of large capital stocks own between 30 to 50 per cent of a certain company's total shares.
In the last 5 years, large cap companies like Google, Microsoft, Amazon and Hewlett-Packard are keeping their institutional investors happy with near-record high growth. In stark contrast, Apple Inc is on a 5-year slump since 2009, as institutional investors may be staying away from Apple shares.
According to analyst Katy Huberty, Apple Inc top 30 institutional ownership share remains at 30 per cent, down from its peak of 40 per cent in 2009. Ms Huberty said this may be an indication that banks, mutual funds and hedge funds investors weigh Apple Inc less compared to other large capital companies.
Ms Huberty noted that institutional investors only have a 2.2 per cent of funds in Apple Inc compared to a high of 4.1 per cent in the past 5 years.
With the rumoured release of the new Apple TV within the year, investors may be interested to see if the rumoured new product can drive stocks closer to $1,000 as earlier predicted.
Previously, it was reported that Apple Inc will be testing hardware for its new Apple TV, references to which have been discovered in iOS7 files. The new device includes a tuner with a Game Store model and a "revamped App Store." A previous forecast of Apple shares by an analyst from Money Morning, Michael Robinson, said if all things go well for Apple including a successful release of the rumoured Apple TV, it may just drive the stock closer to $1000 in the coming months.
This may depend on whether or not Apple can deliver its "innovative" products and satisfy its investors including those with institutional ownership.