Apple is currently at all time highs. Today the stock price closed above $104 for the first time. But Apple is also in the midst of buying back stock. So there is a big question sitting out there. Valuation wise, how much of a discount does the stock need to be from their own valuation for Apple to buyback shares?
Normally, companies will buyback shares because they will find that the cash on hand will have a higher rate of return with this action than others like a dividend or acquisition. So there are not too many companies that will have stock buyback programs going on at a time when its stock is at all time highs.
Which begs the question, at what price does Apple value its stock at? Is there knowledge of a return percentage that Apple likes to make on its cash through stock buybacks? Finding this answer to the second question should give a the investor a good idea as to what the company thinks the stock price should be.
The buybacks continue. The pipeline is full of great products in expanding markets. The dividend was raised in the last year.
Disclosure - KDK Options owns a Dec $130 call
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