According to CapitolTrades.com, a data provider related to politicians’ trades, Scott Franklin, the U.S. representative for Florida’s 18th Congressional District, recently sold multiple stocks. What stands out is that Mr. Franklin sold shares of large tech companies, including Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). Per the data, each of these transactions had a size range of $15-$50K.
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Using TipRanks’ data, let’s check what’s on the horizon for AAPL and MSFT stocks.
What’s the Prediction for AAPL Stock?
The macro- and currency-related headwinds and COVID-led challenges in China took a toll on the financial and operating performance of AAPL. Due to the short-term challenges, the iPhone maker’s sales fell 5% year-over-year, while its earnings of $1.88 per share missed the Street’s expectations.
Nonetheless, these challenges are transitory and will likely dissipate as the operating environment improves. Meanwhile, its exceptional lineup of products, strength in the Services segment, and a growing installed base of 2 billion active devices provide a solid platform for long-term growth.
With 25 Buys and six Holds, Apple stock sports a Strong Buy consensus rating on TipRanks. Analysts’ average price target of $172.01 implies 14.22% upside potential.
Besides for analysts, hedge funds are bullish about AAPL’s prospects. Hedge funds bought 11.3M shares of AAPL stock last quarter. Moreover, it carries a maximum Smart Score of “Perfect 10” on TipRanks.
Is MSFT a Buy or Hold?
The near-term macro headwinds have slowed growth in its Cloud and Personal Computing businesses, which weighed on its overall sales and profitability. However, the tech giant is poised to outperform the broader markets on the back of the recovery in demand, investments in AI (Artificial Intelligence), and ongoing digital transformation.
Wall Street is Bullish about MSFT stock. It has received 25 Buy, four Hold, and one Sell recommendations for a Strong Buy consensus rating. Analysts’ average price target of $292.07 implies 15.75% upside potential.
While analysts are bullish, hedge funds sold 1.4M shares of Microsoft last quarter. Nonetheless, it has an Outperform Smart Score of nine on TipRanks.
Bottom Line
Following politicians’ trades could help in making well-informed investment decisions. At the same time, investors can leverage TipRanks’ Experts Center tool to trade more confidently. As for AAPL and MSFT, near-term challenges could limit the upside. However, the long-term fundamentals of these stocks remain intact. Further, a Strong Buy consensus rating from Wall Street and an Outperform Smart Score imply that these stocks are more likely to beat the broader markets.
