Have Apple Insiders Been Selling Stock?

We wouldn't blame Apple Inc. (NASDAQ:AAPL) shareholders if they were a little worried about the fact that Arthur Levinson, the Independent Non-Executive Chairman of the Board recently netted about US$21m selling shares at an average price of US$232. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.1%.

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The Last 12 Months Of Insider Transactions At Apple

Notably, that recent sale by Independent Non-Executive Chairman of the Board Arthur Levinson was not the only time they sold Apple shares this year. They previously made an even bigger sale of -US$45m worth of shares at a price of US$229 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$240. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 4.5% of Arthur Levinson's holding.

In the last year Apple insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Apple

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Apple insiders own 0.06% of the company, currently worth about US$2.3b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Apple Insiders?

An insider hasn't bought Apple stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Apple is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Apple and understanding these should be part of your investment process.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.