Apple Inc. (NASDAQ:AAPL) is held in exceptionally low numbers by top-30 financial institutions such as banks and hedge funds, according to a Morgan Stanley report issued today. The Cupertino, California-based technology giant is clearly viewed as a poor investment by the analysts and staff of these highly effective players in the financial markets, which probably helps to explain why its share prices continue to show flabby performance despite its sales figures.
According to the report, Apple Inc.’s (AAPL) low popularity is particularly striking because all other large-cap company shares are being snapped up avidly by banks and investment houses. Clearly, Apple’s poor showing among the top-30 money firms is not due to an overall slump in stock purchases by these organizations. In fact, it is even more glaring in light of the fact that they are buying up the shares of its competitors in record numbers, suggesting that these highly experienced firms believe that the Macintosh-themed enterprise has seen better days.
The analysis demonstrated that between 30 percent and 50 percent of a large-cap firm’s shares were held by the top 30 firms that had invested in it. While top-30 ownership of such tech giants as Google (NASDAQ:GOOG) has shot up close to the peak 50 percent mark, Apple shares have fallen to the 30 percent lower limit and are in danger of slipping over it. Not for many years has Apple Inc. been so poorly received among large shareholders. The only lower figure ever was 29.6 percent, only 0.4 percent away from the current levels of top-30 investment.
Apple Inc. (AAPL) holdings tend to be rather underweight in any case, with 40 percent holdings by the top 30 investors representing the usual peak rather than the 50 percent seen in other firms. The company’s lack of transparency, business model based on esthetics as much as performance, and general unpopularity with investors combine to hold down its appeal to banks, hedge funds, and mutual funds. Nevertheless, today’s figures mark it as a near pariah.
For more Apple news follow PFhub on FaceBook, Twitter or bookmark this page.
