Apple (AAPL) Morale Low, Employees Consider Jumping Ship
"Employees are viewing lower Apple Stock price as an indication of a bleak future for Apple," said Chowdhry, after speaking to a large number of employees at various tech conferences.
Interesting, from an employee perspective, Apple's recent increase to its dividend and stock buyback is having a negative effect on morale, since it has done little to lift the stock's price and is draining cash.
"After announcing a record $100 billion in share buy backs and dividends, Apple stock is close to 52 week lows, and this is causing serious employee retention problems at Apple . . .Returning the cash to shareholders has only caused a detrimental effect on the balance sheet and the stock price – some are even beginning to wonder where was the cash going," said the analyst.
Global Equities has a Overweight rating on Apple with a price target of $650.00
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $413.50 yesterday, with a 52 week range of $385.10-$705.07.