Tim Cook Earns $41M in Largest Stock Sale in 2 Years as Apple CEO
Apple's CEO, Tim Cook, recently cashed in on a significant share sale, pocketing a total of $41.5 million after taxes. This transaction marks his most substantial share sale in the past two years, as reported in a U.S. securities filing.
Cook decided to part ways with 511,000 Apple shares, which carried a pre-tax value of approximately $87.8 million, according to the filing dated Tuesday. This stands in contrast to his last stock sale in August 2021 when he raked in an impressive $355 million.
Even after this substantial sale, Tim Cook still retains ownership of approximately 3.3 million Apple shares, which hold an estimated value of around $565 million. This move comes amidst a backdrop of Apple's stock price slipping by 13% from its record high of $198.23 in July. Investor concerns have primarily revolved around a sluggish recovery in smartphone demand, which has affected the company's stock performance.
Apple's response to this challenge was the launch of its new iPhone 15 lineup last month, notable for not raising prices. This strategic decision was seen by some industry observers as a reaction to the global smartphone market downturn. Consequently, shares of the Cupertino-based tech giant dipped by 0.6% in pre-market trading.
Adding to these concerns, analysts at KeyBanc downgraded Apple's stock rating from "overweight" to "sector-weight" on Wednesday. They expressed apprehension that sales growth in the United States, Apple's largest geographical segment, was poised to decelerate further in the fourth quarter. This sentiment was primarily attributed to the belief that fewer U.S. consumers would be eager to upgrade their devices due to the challenges posed by high inflation.
Furthermore, a report from research firm Canalys suggested that North American smartphone shipments were expected to plummet by 12% in 2023. These factors collectively cast a shadow over Apple's immediate prospects, prompting the share sale by its CEO, Tim Cook, who remains a prominent figure in the tech industry.