The recent decline in the stocks of Apple Inc. (NASDAQ:AAPL) fueled individual investors to add shares in their portfolios according to brokerage firm TD Ameritrade. According to the brokerage firm, the number of investors investing in Apple Inc. (NASDAQ:AAPL) is more than ever, and this increase has been backed up by first-time buyers.
Nicole Sherrod, managing director of TD Ameritrade’s Trader Group said, “Apple has always been a big favorite among clients, and in particular a darling of traders,” and recently value investors are also investing their money in the iPhone maker.
Apple Inc. (NASDAQ:AAPL) has bagged the number 2 position to become one of the largest held shares by clients of the brokerage firm after GE. In terms of dollars invested, Apple is the winner by a wide margin.
The announcement that the company is planning to return shareholders more than double the amount through dividends and share repurchase also acted as a catalyst for the increase in investing, according to TD Ameritrade.
David Einhorn of Greenlight also increased his stake in Apple Inc. (NASDAQ:AAPL) and was in all praise for the capital return plans. Investors also considered buying Apple Inc. (NASDAQ:AAPL) shares because the company plans to pay back $100 billion to shareholders in the coming years.
Clients of TD Ameritrade also bought stocks which have recently declined like Cliff Natural Resources Resources (NYSE:CLF) and Vale SA (ADR) (NYSE:VALE), along with industrial giants like Alcoa Inc (NYSE:AA), and Caterpillar Inc. (NYSE:CAT).
Shares which suffered disinterest included giants like McDonalds (NYSE:MCD), which reached its all time high in the previous month. Other shares scrapped from portfolios included Home Depot, Inc. (NYSE:HD) Starbucks Corporation (NASDAQ:SBUX), Hewlett-Packard Company (NYSE:HPQ) and Microsoft Corporation (NASDAQ:MSFT).
Goldman’s Take on Apple
According to Goldman Sachs Group, Inc. (NYSE:GS) the fear trade is beginning in Apple Inc. (NASDAQ:AAPL) stocks. Shares are regaining after the earnings release on April 23 and according to a conversation between investors and Goldman, there is a fear among investors that they may be underexposed to the near term rally.
The current surge in holdings of Apple Inc. (NASDAQ:AAPL) is contrary to the trend in 2012 which saw investors getting rid of the iPhone makers stocks aggressively. Goldman said that investor emotion is that of “am I missing something” in both cases. According to Goldman, the increase in purchase of Apple Inc. (NASDAQ:AAPL) stock is in reaction to the company announcing its large capital allocation program.