Disney CEO buys $1 million worth of Apple stock

Posted:
in AAPL Investors edited January 2014
Bob Iger, chief executive of Disney and a member of Apple's board of directors, recently purchased $1 million worth of shares in Apple, signaling he is bullish in the wake of the stock's recent losses.

Iger's purchase of $1 million worth of AAPL stock was revealed in a filing with the U.S. Securities and Exchange Commission discovered by Business Insider. The purchase comes just a week after Iger exercised a million options on Disney stock, which netted him $17.9 million.

Iger also bought $1 million worth of shares of Apple a year ago, when the stock was priced at $375. That purchase coincided with Iger joining Apple's board, for which he was also awarded more than $84,000 in stock.

The Disney CEO helped to rebuild the partnership between disney and Steve Jobs' Pixar after the two companies grew estranged under the leadership of Iger's predecessor, Michael Eisner. Jobs and Iger also worked together to bring Disney's content to iTunes, at a time when other studios hesitated to ink a deal with Apple.

Iger


Apple's stock hit a six-month low of $527.28 last week. The stock's struggles have been blamed on a variety of issues, ranging from concerns over a U.S. capital gains tax rate hike expected in 2013 to what was seen as a disappointing September quarter with sales of 14 million iPads.

One analyst made headlines this week by calling the selloff of Apple's stock "insanely insane." Brian White of Topeka Capital Markets advised investors to buy in and take advantage of Apple's low stock price.
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Comments

  • Reply 1 of 27
    haarhaar Posts: 563member
    ...And why would he not do so.
    if he was going to buy the stock a month ago, and waited, he just got a deal!... apple will be staying at 500 or higher!.
    on the other hand, pocket change compared to the amount of stock that the Late Steve Jobs had...
  • Reply 2 of 27


    So that was the Monday bump.

  • Reply 3 of 27


    Originally Posted by Nathillien View Post

    So that was the Monday bump.


     


    Would $1,000,000 have bumped the stock by 25 points?

  • Reply 4 of 27
    Seems odd this is news. I bet there are more than a few readers of this forum that have that much in Apple stock.

    If he was Apple's largest indivifual shareholder the way Jobs 'is' with Disney then I could understand the news. I would be surprised if he also owned a lot of Google, Amazon and MS at some point.

    Would $1,000,000 have bumped the stock by 25 points?

    Nope.
  • Reply 5 of 27
    I would guess Iger is privy to apple's stock repurchase plan, and wants to get in ahead of the next run-up.
  • Reply 6 of 27
    apple ][apple ][ Posts: 8,360member

    Quote:

    Originally Posted by SolipsismX View Post



    Seems odd this is news. I bet there are more than a few readers of this forum that have that much in Apple stock.

     


    Yeah, one million worth of AAPL is nothing, and it's merely pocket change to a guy like him.


     


    I also read that he bought on Monday, an even smarter move would have been to buy on Friday.

  • Reply 7 of 27
    jeffdmjeffdm Posts: 12,946member
    ifij775 wrote: »
    I would guess Iger is privy to apple's stock repurchase plan, and wants to get in ahead of the next run-up.

    I would think that would trigger insider trading bells.

    Would $1,000,000 have bumped the stock by 25 points?

    Aren't big purchases like that bought "off market" so as to not cause problems like that?
  • Reply 8 of 27
    apple ][apple ][ Posts: 8,360member

    Quote:

    Originally Posted by JeffDM View Post

    Aren't big purchases like that bought "off market" so as to not cause problems like that?


    One million dollars worth of AAPL bought at around 540 is only about 1850 shares. That's nothing, and there's no way that it has any effect at all.


     


    Now, buying one million shares of AAPL might be a different story, and when huge hedge funds move in and make big moves, they can affect the price. But I don't think that 1850 shares of AAPL has any effect at all.

  • Reply 9 of 27

    Quote:

    Originally Posted by JeffDM View Post





    I would think that would trigger insider trading bells.

    Aren't big purchases like that bought "off market" so as to not cause problems like that?


    Insiders buy shares all of the time and have inside information about the company. He is on the board of directors. The SEC has specific guidelines for executives, but that doesn't mean they have to buy high and sell low.

  • Reply 10 of 27
    rayzrayz Posts: 814member


    That's a weird photo.


     


    It makes it look as though Disney is run by a cartoon character ...

  • Reply 11 of 27
    "Apple wrote:
    [" url="/t/154522/disney-ceo-buys-1-million-worth-of-apple-stock#post_2235881"]One million dollars worth of AAPL bought at around 540 is only about 1850 shares. That's nothing, and there's no way that it has any effect at all.

    Now, buying one million shares of AAPL might be a different story, and when huge hedge funds move in and make big moves, they can affect the price. But I don't think that 1850 shares of AAPL has any effect at all.

    1850 shares isn't even a blip.
  • Reply 12 of 27
    apple ][apple ][ Posts: 8,360member

    Quote:

    Originally Posted by island hermit View Post





    1850 shares isn't even a blip.


    Yeah, if it did have any effect, then just a few of us on this forum could band together and manipulate AAPL. image

  • Reply 13 of 27
    dasanman69dasanman69 Posts: 12,973member
    Would $1,000,000 have bumped the stock by 25 points?

    No but people know that someone bought $1,000,000 in stock and many follow suit.
  • Reply 14 of 27
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by Tallest Skil View Post


     


    Would $1,000,000 have bumped the stock by 25 points?



     

    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

    Look at Yahoo! Finance, and check out $AAPL daily volume. Then ponder whether 2000 shares would make a difference.


    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

     

  • Reply 15 of 27
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by Apple ][ View Post


    Yeah, if it did have any effect, then just a few of us on this forum could band together and manipulate AAPL. image



     

    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

     


    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

    Actually, if you had $1MM, and had nothing better to do with it, you could seriously move the price by trading options (since someone would need to cover the derivative position). 


    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

     

  • Reply 16 of 27
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by dasanman69 View Post





    No but people know that someone bought $1,000,000 in stock and many follow suit.


     

    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

     


    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

    True, but $1MM for Iger is chump change, so this is not that enthusiastic a vote of confidence. Plus, he bought at $565, so at the close on Monday.


    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

     

  • Reply 17 of 27
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by Apple ][ View Post


    One million dollars worth of AAPL bought at around 540 is only about 1850 shares. That's nothing, and there's no way that it has any effect at all.


     


    Now, buying one million shares of AAPL might be a different story, and when huge hedge funds move in and make big moves, they can affect the price. But I don't think that 1850 shares of AAPL has any effect at all.



     


     


    Quote:

    Originally Posted by ifij775 View Post


    Insiders buy shares all of the time and have inside information about the company. He is on the board of directors. The SEC has specific guidelines for executives, but that doesn't mean they have to buy high and sell low.




    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

    Even 1MM shares is not that big a fraction of the AAPL daily volume (yes, amazing but true, apple trades 20MM shares a day, so $10BN), so if a hedge fund wanted to initiate such a position, they would not move the price.


    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

     

  • Reply 18 of 27
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by Apple ][ View Post


    Yeah, one million worth of AAPL is nothing, and it's merely pocket change to a guy like him.


     


    I also read that he bought on Monday, an even smarter move would have been to buy on Friday.



     

    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

     


    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

    I don't think Iger sits in front of his computer and trades. He probably called his broker on Friday...


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  • Reply 19 of 27
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by JeffDM View Post





    I would think that would trigger insider trading bells.

    Aren't big purchases like that bought "off market" so as to not cause problems like that?


     

    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

     


    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

    1. Insider trades are reported to (and then by) the SEC.


     


    2. There is no such thing as "off market" for a publicly traded company.


    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

     

  • Reply 20 of 27
    dasanman69dasanman69 Posts: 12,973member
    igriv wrote: »
     
    True, but $1MM for Iger is chump change, so this is not that enthusiastic a vote of confidence. Plus, he bought at $565, so at the close on Monday.
     

    They wouldn't know who purchased it. For most people $1M isn't a amount to sneeze at.
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