Tim Cook sells 40k Apple shares worth nearly $5M
For the fourth time in less than two weeks, Apple CEO Tim Cook on Wednesday sold off a batch of company stock worth just under $5 million, continuing a series of transactions in accordance with a trading plan adopted in 2015.
The most recent trades, revealed in a U.S. Securities and Exchange Commission filing, show Cook shed a total of 40,000 shares in four separate trades -- including a small purchase -- accomplished between Jan. 30 and Feb. 1.
On Monday, the Apple chief sold 10,000 shares at $120.93, then disposed of another 10,000 shares at $121.03 on Tuesday. It was also on Tuesday that he bought 236 shares of Apple's common stock pursuant to the company's Amended Employee Stock Purchase Plan ("ESPP"). Finally, in a pair of trades today, Cook liquidated another 15,000 shares at $127.10 and 5,000 shares at $130.
The latest stock selloff comes on the heels of three recently reported transactions, each of which was made in accordance with Cook's 2015 trading plan. From Jan. 20 through Jan. 27, the Apple chief sold 90,000 shares in nine equal transactions ranging in price from $120 to $122.24.
Including today's trades, Cook over the past two weeks sold 130,000 Apple shares worth almost $16 million.
Though unrelated to the recent selloff, Cook and his executive team missed out on bonus pay last quarter as a result of Apple's comparatively poor showing in fiscal 2016. While the company managed $215.6 billion in net sales and generated operating income of $60 billion, the performance failed to meet stretch goals instituted by the Apple's compensation committee.
Cook is in a good position to net bonus stock going into 2017, however, as Apple on Tuesday announced record earnings of $78.4 billion for the lucrative holiday quarter. More importantly, the company's primary money maker, iPhone, returned to growth with a record-breaking 78.3 million sales.
The most recent trades, revealed in a U.S. Securities and Exchange Commission filing, show Cook shed a total of 40,000 shares in four separate trades -- including a small purchase -- accomplished between Jan. 30 and Feb. 1.
On Monday, the Apple chief sold 10,000 shares at $120.93, then disposed of another 10,000 shares at $121.03 on Tuesday. It was also on Tuesday that he bought 236 shares of Apple's common stock pursuant to the company's Amended Employee Stock Purchase Plan ("ESPP"). Finally, in a pair of trades today, Cook liquidated another 15,000 shares at $127.10 and 5,000 shares at $130.
The latest stock selloff comes on the heels of three recently reported transactions, each of which was made in accordance with Cook's 2015 trading plan. From Jan. 20 through Jan. 27, the Apple chief sold 90,000 shares in nine equal transactions ranging in price from $120 to $122.24.
Including today's trades, Cook over the past two weeks sold 130,000 Apple shares worth almost $16 million.
Though unrelated to the recent selloff, Cook and his executive team missed out on bonus pay last quarter as a result of Apple's comparatively poor showing in fiscal 2016. While the company managed $215.6 billion in net sales and generated operating income of $60 billion, the performance failed to meet stretch goals instituted by the Apple's compensation committee.
Cook is in a good position to net bonus stock going into 2017, however, as Apple on Tuesday announced record earnings of $78.4 billion for the lucrative holiday quarter. More importantly, the company's primary money maker, iPhone, returned to growth with a record-breaking 78.3 million sales.
Comments
The clueless tried to spin it as, 'Cook dumping stock before bad ER release'. (How'd that turn out?)
Sales are always ongoing as shares become vested.
See here: https://www.marketbeat.com/stocks/NASDAQ/AAPL/
(Click "Insider Trades")
HE IS SELLING BEFORE THE FALL !!
This is not.
And I will cite my cognitive biases as proof.
:-D
Apple Stores around the globe are posting "GOING OUT OF BUSINESS SALE" signs written on long bed sheets!!
Thanks. I was actually wondering this.
Funny how many people here didn't think of this.
By having these plans - assuming they meet certain requirements - insiders have an affirmative defense against insider trading allegations. The theory is that, while an insider may have NPMI when a trade was actually made on their behalf (these trades are made by third parties), they didn't have that NPMI when they decided when the trade would be made. These plans can call for shares to be sold on a certain date, or when shares trade at a certain price, or based on other conditions having been met. The key is that the criteria be more or less self-executing, meaning that there isn't a decision left to be made by the insider (e.g. Mr. Cook) as to whether a given trade will happen or not on a particular day. The third-party making trades for them just follows the instructions (though, there is some discretion left with that third party as to, e.g., when during the course of a given day a trade occurs).
Without these kinds of plans, executives such as Mr. Cook would be opening themselves up to insider trading allegations almost anytime they sold shares. That's why it's advisable for them to have 105b-1 plans, even though they aren't required by law to.
They don't have to hold on to these kinds of shares for a minimum amount of time. They can, and often do, sell them as soon as they vest. The plans which are typically used to determine the timing of sales are set up in advance though - sometimes a couple of months, sometimes years. They also don't submit the sales to the SEC in advance. They do, however, have to report such sales to the SEC within 3 business days of making them. That's why this recent batch of sales on behalf of Mr. Cook have been reported in 4 separate filings. He's been selling 10,000 shares a day (until yesterday when he sold 20,000) and after 3 days the last 3 days worth of sales get reported.
In this case, the plan these sales were made pursuant to was adopted in August of 2015. It wouldn't have had to have been that long ago though. For instance, under that same August 2015 plan he sold shares in October and November of 2015 when AAPL traded above $120.
Good point. So then WTF do we get a news story every time this pre-programmed trade gets executed?
Dude, I'd give you 50 "likes" if I could. Very informative and well written post. Thank you.
Based on the timing of this filing, I would guess this represents the end of this round of selling by Mr. Cook.
Also, there were filings made today for a number of Apple board members as well as Bruce Sewell (an Apple Senior Vice President and General Counsel) showing many of them selling shares on Thursday. Some of those shares had just vested on Wednesday or Thursday (some were options priced around $13 or $26 and some were RSUs).