Apple (AAPL) CEO Tim Cook has sold company stock in recent weeks.
The latest regulatory filing with the U.S. Securities and Exchange Commission (SEC) shows that Cook received 477,301 Apple shares on October 1 as part of his compensation. A day later, on October 2, he sold 223,986 shares of AAPL stock at an average price of $224.46 each, for a profit of $50.3 million.
The sales were executed under a rule 10b5-1 trading plan that was established earlier this year. Such plans execute stock sales automatically when preset conditions, such as price, are met. Rule 10b5-1 trading plans are designed to prevent company insiders, such as Tim Cook, from gaining an unfair advantage or benefitting off non-public information.
Other Apple Executives Sell Stock
Cook isn’t the only senior executive at Apple who has sold company stock since the beginning of October. The same filing with the SEC revealed that chief operating officer (COO) Jeff Williams sold 59,370 shares worth $13.50 million. Additionally, Deirdre O’Brien, senior vice-president of retail, and Katherine Adams, Apple’s head of legal, each sold $13.80 million worth of Apple stock.
Stock awards remain a key part of the total compensation given to senior executives at leading companies such as Apple. Tim Cook remains the second-largest individual shareholder of Apple with 3.28 million shares, worth just under $750 million based on current prices. AAPL stock has risen 28% in the last 12 months.
Is AAPL Stock a Buy?
Apple stock has a consensus Moderate Buy rating among 34 Wall Street analysts. That rating is based on 23 Buy, 10 Hold and one Sell recommendation made in the last three months. The average AAPL price target of $248.90 implies 8.99% upside from current levels.
