Dallas, Texas 08/20/2013 (Financialstrend) – It is expected that the buyback offer announced by Apple Inc. (NASDAQ:AAPL) would be doubled in its value presently at $60 billion, as commented by the equity research analysts from the RBC Capital Markets. It had further been commented in the recent research report issued by the analysts that the company would manage to have a decent leverage ratio which is equivalent to around 1.3 times the ratio of gross debt to EBITDA, even after the doubling of the buyback offer. This increase in the buyback offer is primarily expected to occur due to the favorable share prices and bond yields of the company, further boosted up by the interest exhibited by the activist investor Carl Icahn.
It had further been commented that the debt to EBITDA ratio for Apple Inc. (NASDAQ:AAPL) is presently at 0.3 multiples while the same ratio is at an average level of 2 multiples for large cap companies. In addition, it is observed that this Cupertino based company had reported the largest cash holding position among all the other large cap companies operating in the markets. With marginal increase in its debt, it is expected that Apple could manage to increase the buyback offer by around $50 to $90 billion, still maintaining the ratio at 1.3 to 1.8 multiples.
Apple Inc. (NASDAQ:AAPL) had been moving high on Monday to gain around 1.08% in prices and thereby had closed at $507.74 per share. The stock had moved on to present fluctuations in prices in the range of $504.00 to $513.74 per share for the day. The stock had further reported trading volume at 18.23 million shares on the first day of the week, while the company on an average had recorded trading volumes at 11.88 million shares per day. The shares of this company had presently reported the 52 week low of $385.10 and 52 week high of $705.07 per share.