Apple CEO Tim Cook, Executives Sell Over $100M In Stock - Harbinger Of iPhone 15 Flop? Or Diversifying Their Wallets?

Records released on Tuesday showed several recently executed insider stock sales by Apple Inc AAPL company officials.

Three executives, including CEO Tim Cook, cashed in on shares totaling $134.58 million as part of a prearranged trading program, according to data from Benzinga's insider trades page.

Investors may remember that Apple’s Q1 report in February showed earnings per share of $1.88 fell short of the projected $1.94, largely due to underperforming iPhone 14 sales. With the recent launch of the iPhone 15, it raises questions about the company’s performance expectations for the upcoming quarter.

Insider Trade Details: Senior Vice President Deirdre O’Brien: Converted and sold 136,268 shares totaling $23.39 million at an average of $171.64 per share.

Senior Vice President, General Counsel and Secretary Katherine Adams: Converted and sold 136,268 shares totaling $23.39 million at an average of $171.64 per share.

Apple CEO Tim Cook: Converted and sold 511,000 shares totaling $87.8 million at an average of $171.64 per share. This was his first sale of Apple stock options since August 2021.

Apple did not immediately respond to Benzinga's request for comment.

The fiscal first-quarter performance was a disappointment for the Cupertino, California-based company. The tech giant’s revenue was $117.2 billion, a 5% year-over-year decrease, falling short of the consensus estimate of $121.1 billion.

Notably, the fiscal first quarter period is typically Apple’s most active, and expectations had been tempered.

During the prior year’s fourth-quarter earnings call, in 2022, CFO Luca Maestri indicated slower year over year revenue growth for the December quarter. Factors cited included adverse currency effects, a deceleration in the Service sector’s revenue growth, among other reasons.

Read also: Apple Accused Of ‘Climate-Washing’ By Chinese Research Organization

Later, in the first quarter, Apple said its iPhone revenue fell 8.17% year over year to $65.78 billion, which missed Morgan Stanley analyst Erik Woodring's $68.9 billion prediction.

Regionally, last year, Apple saw revenue declines across the board. The Americas, which contributes to roughly 42% of total revenue, dropped 4.31% to $49.28 billion. Greater China’s revenue was down by 7.28% at $23.91 billion.

The recent launch of the iPhone 15 lineup raises questions about this year’s sales, with Apple’s fiscal fourth-quarter earnings report expected later this month. However, the full reflection of holiday season sales won’t be available until the onset of next year.

Investors and industry analysts will be watching closely to see if the recent insider stock option sales are an early indicator of the company’s performance, or merely executive-level portfolio diversification as part of the SEC’s Rule 10b5-1.

AAPL Price action: Shares of Apple are trading up 0.17% to $172.69 at the time of publication Wednesday, according to data from Benzinga Pro.

Read next: McCarthy’s Ouster Amplifies Congressional Tensions, Goldman Sachs Anticipates Q4 Shutdown

Photo: Shutterstock