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Apple ( AAPL ) CEO Tim Cook doesn’t give many TV news interviews, but when he does his company’s stock tends to get a short-term bump but then decline three months later and stay down for a few months. In a research report Monday, Bernstein analyst Toni Sacconaghi said Cook’s TV appearances tend to follow periods of investor concern or controversy. Cook has made seven major TV appearances since becoming CEO of Apple. And six of those seven appearances have occurred during the past two years of his four-and-a-half-year tenure. “When Tim Cook spoke with Jim Cramer on CNBC’s ‘Mad Money’ last week, many investors asked whether there was any historical pattern to his media appearances (i.e., does he only engage with the media when things are going poorly?), and whether the media appearances presaged stock performance in any way,” Sacconaghi said. So, Sacconaghi ran the numbers. “All seven appearances have followed a two-week period where the stock has underperformed (5 times) or performed in-line (2 times) with the market,” Sacconaghi said. “Cook’s television appearances have generally attempted to soothe prevailing investor concerns, and Apple’s stock has initially typically reacted neutrally or somewhat positively to the public appearances historically, as it did last week. “However, generally, the public appearance (and) associated commentary (have) not been a good leading indicator for the stock over longer periods.” One day after a Cook TV interview, Apple’s stock on average has risen 0.9%. A week later, Apple stock is up 0.3%. One month later, it’s up 1.3%. But three months later, it’s down 5.2%. Six months later, Apple stock is down 7.8% on average. Looking at Cook’s TV appearances just in the last two years, the longer-term declines are less dramatic. The day after Cook’s last six TV appearances, Apple stock has risen 0.8% on average. A week later, it’s up 0.6%. A month later, it’s up 2.6%. But Apple stock has averaged a 1.1% decline after three months and a 3.6% decline after six months, Sacconaghi said. A better indicator of Apple’s stock performance is tracking the company’s share repurchases. “Since 2012, when Apple has repurchased $14 billion or more of its stock in a given quarter, its stock has meaningfully outperformed over the next 1 to 2 quarters — in most other periods, the stock has underperformed,” Sacconaghi said. Sacconaghi reiterated his outperform rating on Apple stock with a price target of 135. Apple rose a fraction to 92.82 on the stock market today . On Friday, Apple shares hit their lowest level in nearly two years: 91.85 in intraday trading. Apple Stock Gets Price Target Cut From Baird Baird analyst William Power on Monday maintained his outperform rating on Apple stock, but trimmed his price target to 115 from 120. Power said he has grown “more cautious near to medium term” on Apple. Consensus estimates remain stubbornly too high for fiscal Q4 and the full year because of “inflated iPhone 7 expectations,” he said. Power kept his outperform rating on Apple stock because, he says, downside risk is minimal. Most of the bad news is already priced into shares, he said. On Sunday, RBC Capital Markets analyst Amit Daryanani said Apple stock is oversold and he sees a buying opportunity. He reiterated his outperform rating on Apple stock, with a price target of 120. RELATED: Apple Recruits SAP To Help Sell iPads, iPhones To Companies Scalper1 News
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