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Morgan Stanley’s Katy Huberty thinks now is a good time to buy AAPL stock, noting that institutional ownership is at a historic low and the share price is likely to rise when they get back in the game following the launch of the iPhone 6, reports Business Insider.

The top 100 investors currently only hold two percent of AAPL stock, well below the S&P 500 weighting of 3.2 percent, and at the bottom end of the historical range of 1.6 to 4.5 percent. What this means in plain English is that those investors are likely to buy more AAPL stock in future, which would typically boost the share price.

Fortune‘s Philip Elmer-DeWitt notes wryly that the charts also show that institutional investors, often known as ‘the smart money,’ were not so smart on this occasion: they reduced their holdings in Apple shortly before the stock climbed ten percent.

As ever, make your own investment decisions …

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6 Responses to “Time to buy AAPL before institutional investors pile back in, says Morgan Stanley”

  1. got my ONE share. woopwoop!

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  2. Scott Rose says:

    Actually, the institutional investors will be getting back in, but for a different reason. Not the iPhone 6. They’ll be getting back in because of the STOCK SPLIT. Many institutions are forbidden from buying a stock after it reaches a certain level. Apple has gone way beyond that level right now, but will be accessible again after the stock split.

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    • Scott, having worked in institutional sales I have never heard of a top limit. Many institutions don’t buy below $5 but I don’t think they are limited above $500 or $700 at all. Consumers investors are the one’s who can’t afford the $500-$700 sticker price. You could be thinking of a high P/E ratio or many other metrics. I am long AAPL btw.

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  3. Jo Swanson says:

    I’m never going to stop kicking myself in the butt for not following my own instinct some years ago when my mutual funds were disappearing and I had a chance to buy AAPL for $33 a share! Like a dummy, I tried something else and ended up later buying AAPL at $270 a share. Ouch! I could have had 100 shares instead of only 13!

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