Apple has been the best performing Magnificent Seven stock this year, but it might be time for investors to take a break as iPhone shipments have been reduced and gross margins could be under pressure.

It has been a solid year for Apple stock with shares rising more than 26% as of Monday's closing bell. That return makes Apple the best performer among the Mag Seven stocks in 2026, with Nvidia's 16% gain this year making it Apple's closest competitor.

But with Apple stock closing at a record high of $343.46 on Oct. 16, there might not be much upside left, according to Loop Capital analyst Ananda Baruah.

Baruah downgraded Apple stock to Hold from Buy and reduced the firm's price target to $330 from $370.

Apple stock fell 0.1% to $342.50 on Tuesday, after ending Monday down about 0.2% at $342.94. Baruah's new price target represented about 4% downside from the closing price on Monday.

The downgrade was based on the firm's new iPhone data after Apple reduced its September and December iPhone unit shipments by 10%.

Baruah said in the research note that the firm previously believed Apple would be in a position to make up many, if not most, of these units through 2027 as the reductions were supply related and not demand related.

"This no longer appears to be the case," the analyst said.

Baruah added that Apple's gross margins might also be at as memory costs continue to increase.

The downgrade comes after KeyBanc analyst Brandon Nispel warned Apple's iPhone 18 launch probably won't go as well as the company wants, saying that customers may find it tough to stomach higher prices when their existing device already does the job.

Nispel rates Apple stock at Underweight and has a $250 price target, which implied a 27% drop from Monday's closing price.

MoffettNathanson also lowered its price target on Apple to $283 from $304 and kept a Neutral rating on the shares while UBS told investors that Apple's September quarter revenue is expected to be broadly in line with expectations. UBS added that iPhone growth is projected to slow to 14% down from 22%-23% in recent quarters.

The firm has a Neutral rating and $296 price target on Apple.

But Baruah doesn't have a completely negative view: The analyst said that Loop Capital continues to like Apple's long-term prospects, adding that the "stock also requires a fundamental catalyst reset after its recent stock appreciation.