Did Short Sellers Call This Correction for Apple?
Apple’s stock has dropped nearly 8% in the past two trading sessions. Did short sellers call this or see this drop coming ahead of time?
Apple Inc. (NASDAQ: AAPL) watched its short interest make an incredible gain for the period ended on May 31. Apple’s stock has dropped nearly 8% in the past two trading sessions. Did short sellers call this or see this drop coming ahead of time?
For the period ended May 31, Apple saw its short interest jump to 63.20 million from the previous level of 49.91 million. This is an increase of over 26%.
Recently, Mizuho Securities’ Abhey Lamba clipped his rating for Apple to Neutral from Buy. His concern is that all of Apple’s near-term future success is baked into its share price. That share price is up 29% this year and it trades near an all-time high. Lamba wrote:
The stock has meaningfully outperformed on a YTD basis and we believe enthusiasm around the upcoming product cycle is fully captured at current levels, with limited upside to estimates from here on out.
[nativounit]
This is not the first recent downgrade of Apple. As the iPhone 8 release nears, experts wonder if what are expected to be spectacular sales can sustain an already sharp share price increase.
Excluding Monday’s move, Apple is the best-performing Dow stock, with shares up nearly 29% year to date. Over the past 52 weeks, the stock is up closer to 50%.
Shares of Apple were last seen down 3.7% at $143.55 on Monday, with a consensus analyst price target of $157.36 and a 52-week range of $91.50 to $156.65.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
