Apple Moves Back in Bearish Territory

Apple (NASDAQ: AAPL) stock has declined 6.97% so far in 2016, compared with a 2.70% rise in the S&P 500 index. Shares have declined 24.75% over the past twelve months, while the S&P 500 index has declined 0.71%.

Since last week, shares of Apple, Inc. were under a lot of pressure, which included a downgrade on Thursday by analysts at Goldman Sachs, who cited weaker iPhone sales forecasts, a services outage that impacted its App Store for about two hours and an insider shares sale.

Eddy Cue, Apple’s senior vice president of internet software and sales, disclosed on Wednesday he sold about 50,000 shares of the company in a transaction valued at about $5 million. It appears it was a well-timed transaction.

In addition, Apple is still trying to recover from a slowdown in China, where the company continues to suffer from declining device sales. To offset the decline, Apple has been promoting new apps and services. And on Friday Market Watch reported that local Chinese brands have encroached on Apple’s market share.

Apple shares closed on Friday at $97.92, marking a decline of 2.42% for the week, compared to the prior week’s close of $100.35. At the same time, the stock closed below $100 per share, which continues to be an important psychological benchmark for shareholders.

Needless to say, the shares are now back in bearish territory, which occurs when a stock trades 20%+ below its 52-week high. Apple’s 52-week high is $132.97, or 26% higher. Goldman analyst Simona Jankowski trimmed Apple’s 12-month price target to $124 from $136. His new price target implies a premium of almost 27% from current levels. But it would appear even some Apple insiders aren’t willing to wait for the price to appreciate.

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