Form 4: Tim Cook's Apple Stock Transactions After RSU Vesting

Apple CEO Tim Cook reported the vesting of 277,206 restricted stock units and subsequent sales of common stock under a Rule 10b5-1 plan.

Summary

• Apple CEO Timothy D. Cook acquired 277,206 shares of common stock on October 1, 2025, through the settlement of restricted stock units (RSUs).
• These RSUs were part of an award granted on September 25, 2022, with a target of 199,429 units, vesting based on Apple's Total Shareholder Return (TSR) relative to the S&P 500.
• Apple's TSR of 70.22% over the three-year performance period (fiscal years 2023-2025) ranked it in the 66.60th percentile among S&P 500 companies, leading to 277,206 RSUs vesting (approximately 139% of the target).
• On October 1, 2025, 147,243 shares were disposed of at $255.45 to satisfy tax withholding requirements related to the RSU vesting.
• On October 2, 2025, Mr. Cook sold a total of 129,963 shares of common stock in multiple transactions at weighted average prices ranging from $254.83 to $257.57.
• All sales were executed pursuant to a Rule 10b5-1 trading plan adopted on May 24, 2024.
• Following these transactions, Mr. Cook beneficially owns 3,280,295 shares of Apple common stock, held through his trust.

Sentiment

Score: 7

Explanation: The filing indicates strong performance by Apple, leading to a significant vesting of performance-based restricted stock units for its CEO. While there are subsequent sales, these are pre-planned and common for executive compensation, not necessarily indicating a negative outlook. The strong relative TSR is a positive indicator.

Positives

• Apple's Total Shareholder Return (TSR) of 70.22% over the three-year performance period (fiscal years 2023-2025) placed it in the 66.60th percentile of S&P 500 companies.
• This strong performance resulted in the vesting of 277,206 restricted stock units for CEO Tim Cook, which is approximately 139% of the target award.

Negatives

• CEO Timothy D. Cook sold a total of 129,963 shares of common stock on October 2, 2025, following the RSU vesting.
• An additional 147,243 shares were disposed of to cover tax obligations, reducing his direct beneficial ownership.

Future Outlook

The reported stock sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on May 24, 2024, indicating a planned approach to insider stock transactions.

Industry Context

The vesting of performance-based restricted stock units for Apple's CEO, tied to the company's Total Shareholder Return (TSR) relative to the S&P 500, highlights a common executive compensation structure designed to align management incentives with shareholder value creation. Apple's strong relative TSR performance suggests its continued leadership and competitive strength within the broader market.

Comparison to Industry Standards

• Apple's Total Shareholder Return (TSR) of 70.22% over the three-year performance period (fiscal years 2023-2025) ranked it 162nd out of 483 companies in the S&P 500.
• This performance placed Apple in the 66.60th percentile relative to its S&P 500 peers, exceeding the 55th percentile threshold for 100% target RSU vesting and falling between the 55th and 85th percentiles, resulting in 139% of the target RSUs vesting.
• The vesting criteria demonstrate a robust performance against a broad market index, indicating strong relative performance compared to a diverse set of large-cap U.S. companies.

Stakeholder Impact

• Shareholders: The vesting of performance-based RSUs for the CEO, driven by strong Total Shareholder Return (TSR) relative to the S&P 500, indicates effective management alignment with shareholder interests and potentially positive long-term value creation. The sales are part of a pre-planned compensation strategy.
• Employees: The performance metrics for executive compensation may set a benchmark for overall company performance expectations.

Key Dates

Recommendation

The filing details routine insider transactions by Apple CEO Timothy D. Cook, involving the vesting of performance-based restricted stock units and subsequent sales under a Rule 10b5-1 plan. The vesting itself is a positive indicator of Apple's strong Total Shareholder Return relative to the S&P 500 over the past three fiscal years, suggesting robust company performance. However, these are standard compensation events and pre-planned sales, which typically do not signal a change in the company's fundamental outlook or warrant a 'buy' or 'sell' recommendation based solely on this filing. Investors should 'hold' and consider broader market conditions and Apple's comprehensive financial reports for investment decisions.

Keywords

Apple Inc., AAPL, Timothy D. Cook, SEC Form 4, Insider Trading, Restricted Stock Units, RSU Vesting, Stock Sales, 10b5-1 Plan, Total Shareholder Return, S&P 500