Cook sells stocks and cashes in $40 million, has Apple's valuation really reached its peak?
On Wednesday, documents revealed that Apple CEO Tim Cook sold approximately $41 million worth of stock after taxes, marking the largest stock sale in over two years.
According to the SEC documents obtained by Zhitong Finance, on Wednesday, Apple CEO Tim Cook sold approximately $41 million worth of stocks, marking the largest stock sale in over two years. The documents show that Cook sold 511,000 shares of Apple stock at a price ranging from $171 to $173 per share, and he still holds approximately 3.28 million shares after the sale. Senior Vice President Deirdre O'Brien and Katherine Adams also sold stocks worth approximately $11.3 million, following Cook's footsteps. Cook has reduced his annual compensation by about 40% to $49 million this year, and the stock awards tied to performance have increased from 50% to 75%.
This is the largest stock sale by Cook in over two years, as the stock price of the iPhone manufacturer has been declining since reaching a historic high this summer. The last time Cook sold stocks was in August 2021, when he sold approximately 4.6 million shares of Apple stock worth over $750 million. Apple helped lead the rise of US tech stocks this year, with the stock reaching a record high of $196.45 on July 31. However, since then, the stock price has been declining, falling about 12% from its peak.
Due to investor concerns about the slower-than-expected recovery in smartphone demand, the company's stock price has been falling. Apple launched the new iPhone 15 series last month without raising prices. Some industry observers believe that this move is in response to the sluggish global smartphone market. A report from research firm Canalys shows that smartphone shipments in North America are expected to decline by 12% in 2023.
On Wednesday, KeyBanc Capital Markets downgraded Apple's rating from "hold" to "market perform," stating that Apple's stock valuation is close to its historical high, but sales growth may slow down. Analyst Brandon Nispel wrote in a report that the upgrade cycle of the iPhone is challenging in the case of slowing consumer spending, and "sales in the US market may face difficulties." In addition, "expectations for accelerated growth in the international market may be too aggressive."