Apple Inc. Stock Reaches $600 Price Target Ahead of WWDC Event and New Product Announcements
By Reissa Su | May 6, 2014 8:20 PM EST
Apple Inc (NASDAQ: AAPL) investors had finally seen the company's shares reach the $600 mark once again. The last time Apple shares crossed the $600 mark was back in November 2012.
A woman looks at the screen of her mobile phone in front of an Apple logo outside its store in downtown Shanghai September 10, 2013.
After surprising investors and Wall Street with higher-than-expected revenues in the first quarter of 2014 and following the announcement of stock buybacks and stock split, Apple's stock is boosted by investors who have responded positively. The stock had traded close to $600 before finally crossing it as of May 5.
Apple's stock has been floating around in the low $500s since Oct 2013. The stock has been traded as high as $705 in Sept 2012 following the release of the iPhone 5.
With shares of Apple stock continuing to increase in value, RBC Capital Markets has raised its price target for the company to $645 from the previous forecast of $625. Apple's stock has also received a rating of "outperform" which reflected the company's additional stock buybacks and bonds sale.
Apple has issued $12 billion dollars in bonds in an effort to reward shareholders locked in a cheaper alternative than overseas cash subject to tax. The bonds sale includes $2.5 billion of 3.45 per cent, 10-year notes that pay 77 basis points more than Treasuries with similar maturity, according to Bloomberg.
Along with the earnings call report, Apple's board of directors have declared a stock split, which means the company's shareholders will get on June 2 six additional shares for every share of stock they own.
The gains in stock also followed Apple's recent victory over Samsung on May 2. Apple has recently won $120 million in damages in a U.S. trial against Samsung. After hearing nearly four weeks of evidence in the second trial of the companies' patent case in the U.S, the jury has found that Samsung had infringed on two of the four Apple patents being contested.
The string of good news comes ahead of Apple's WWDC developer conference on June 2 to 6. Apple is expected to announce its new product offerings for 2014 in that highly anticipated event.
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