Apple CEO Tim Cook
Angela Weiss/AFP/Getty ImagesApple CEO Tim Cook sold a large amount of stock through planned transactions shortly before the iPhone maker’s stock split.
Apple (ticker: AAPL) stock has surged about 70% year to date, and became the first public U.S.-traded company to top the $2 trillion mark in market value. At the end of July, Apple reported strong fiscal third-quarter earnings and declared a 4-for-1 stock split, effective Aug. 31.
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A trust Cook controls received 560,000 Apple shares on Aug. 24, representing the settlement of the same amount of restricted stock units, or RSUs. According to a form he filed with the Securities and Exchange Commission, 280,000 of the RSUs were time-based, but the rest were based on the relative performance of Apple stock. The total shareholder return, including dividend reinvestment, from Aug. 25, 2017, through Aug. 24, 2020, was 194.89%, placing Apple stock in seventh place among S&P 500 components. The outperformance meant that all 280,000 of Cook’s performance-based RSUs had vested.
The CEO’s trust sold 265,160 Apple shares on Aug. 25 for $131.8 million, an average per-share price of $496.91. The transactions were conducted through a so-called Rule 10b5-1 plan, which automatically executes trades when certain preset parameters, such as price and volume, are met. The transactions are meant to remove any potential bias a company insider may have from the knowledge of material nonpublic information.
Apple didn’t make Cook available for comment.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
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Apple CEO Tim Cook Sold Shares Ahead of Stock Split - Barron's
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