Apple Inc. (NASDAQ:AAPL) shares surged this afternoon, hitting a major milestone and heading back up toward $500 per share. This came after activist investor Carl Icahn tweeted that he’d taken a large stake in the company and spoken to Chief Executive Officer Tim Cook about increasing the company’s share buyback plan.
But Icahn’s investment and possible involvement at the company isn’t the only thing investors may be getting excited about. As with most stock movement, there are other factors in play as well.
At this year's SALT New York conference, Jean Hynes, the CEO of Wellington Management, took to the stage to discuss the role of active management in today's investment environment. Hynes succeeded Brendan Swords as the CEO of Wellington at the end of June after nearly 30 years at the firm. Wellington is one of the Read More
Apple tops 200-day moving average
Thanks to that tweet, the company’s stock has pushed up over its 200-day moving average. This is the first time Apple Inc. (NASDAQ:AAPL) has managed to do that since it fell under the average late last year. It’s an important milestone for the company whose share price has done nothing but fall since its record high last September.
Apple Inc. (NASDAQ:AAPL)’s 200 day moving average was $471 today, although that number has been falling thanks to the months-long decline in the company’s share price. So what’s turning Wall Street’s view of Apple Inc. (NASDAQ:AAPL) around?
Apple’s next iPhone coming soon
In addition to Icahn’s investment, the next iPhone is expected to be out soon, and investors are expecting it to be another catalyst for growth at the company. The media has been buzzing with rumors about the next iPhone, and finally it sounds like we have confirmation that it will indeed be the iPhone 5S, a small incremental upgrade, rather than the major upgrade some were hoping for. Nonetheless, a new iPhone is a new iPhone, and it brings the possibility of a major sales increase for Apple Inc. (NASDAQ:AAPL).
So will Apple Inc. (NASDAQ:AAPL) shares hit $500 and stay above it? On Monday we saw one of the last two analysts who had their target price for the stock above $700 actually lower it below that mark. Topeka Capital’s Brian White remains the lone hold-out with a target price of $888 per share. If the stock tops $500, it’s likely that we’ll see a number of analysts revise their targets upward, especially as the iPhone launch date approaches.