Shares of Apple Inc. (AAPL) are seeing an aggressive drop on an increase in relative volume (22.7 million traded as of 1:30 p.m. EDT vs 16.4 million 3m avg) over the recent intraday action. The equity is trading lower today at $334.93, down $10.40, or (3.02%), thanks in part to this morning’s downgrade from JMP Securities, cutting the iPhone maker to “Market Perform” from “Market Outperform”. Another catalyst helping share deterioration is overall market weakness. Having said that, the stock has already staged a modest bounce off of its $332.51 LOD level, helping to alleviate some of the oversold conditions that were initially present. The bounce however, has been relatively weak, and short-lived, which does open the door for a further decline into the wide support band that stretches all the way down into the $330 – $320 area. But for now longs are managing to keep ticker above the $330.00 level. After breaking its $338.37 long-term support, Apple’s next support is at $330.12, and then at $326.63.
From a valuation perspective, Apple shares curently trade at a 3.92x on a price to sales basis. The ticker has a trailing P/E of 18.60, a forward P/E of 12.67 and a P/E to Growth ratio of 0.75. The median Wall Street price target on the stock is $430.00 with a high target of $550.00.