Apple Execs Begin Buying AAPL Stock Again
Apple Execs Begin Buying AAPL Stock Again
by , 5:45 PM EDT, September 19th, 2002
After a Springtime sell-off of Apple stock by Apple executives, the company's honchos began buying stock again in August. TMO reported insider trading activity throughout the Spring, when Apple was trading at levels up to US$10 per share more than today's US$14.50 levels. Apple's stock has been trading at those 52-week low levels since July.
According to a Reuters report, Apple executives began picking up Apple stock again in August. The report doesn't offer any details on Apple insider activity, but does offer details on wider tech insider activity:
Top U.S. executives bought more shares of their own companies in August than in the previous month and analysts say sentiment has turned bullish for the third straight month.
Insider buying in August rose to US$219 million, or 67 percent higher than in July, according to the latest monthly figures from Thomson Financial. The August seasonal spike in insider buying was expected, as that has been the case in each of the past 10 years, said the research firm.
August was the first month since January in which insider purchasing is higher than the five-year monthly average of US$215 million, said Lon Gerber, director of insider research at Thomson Financial.
At the same time, insider selling rose to US$1.4 billion in August from US$792 million in the previous month, but insiders "remain hesitant to unload shares as the sales volume remains well below its historic monthly average of US$2.6 billion," said Gerber.
In August, insider sentiment became more bullish in technology sector insider purchases jumping 240 percent from the previous month to US$63 million, about double its 5-year monthly average.
Tech selling rose to US$319 million in August from US$110 million in the previous month, but remains much lower than normal levels, said Gerber.
Tech buying occurred at Apple Computer Inc., Lucent Technologies Inc., and LSI Logic Corp.
A check of the registered insider activity at Yahoo!'s financial site shows that Apple board member Arthur D. Levinson bought some 50,000 shares of AAPL on August 1st, at a price of from US$14.87 - US$14.90 per share. Other activity may have taken place since that time, while not yet showing up in the official SEC reports.
Apple's stock closed at 14.58, down 0.44 (-2.93%), on light volume of 3,638,988 shares trading hands.
If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.
The Mac Observer Spin:Insider activity is tracked by Wall Street as a gauge of executive confidence in their own companies. Collectively, this is often an indicator of what direction business will be headed in coming months.
In Apple's case, the stock can't fall much lower than current levels due to the US$4.3 billion in cash reserves the company has. That level of cash reserves translates into approximately US$11.98 per share of value. The way the markets work, that sort of protection means that investors will swoop in and buy a company's stock whenever it begins trading near those levels because they know the value is there. In other words Apple's stock is effectively trading at US$2.50 (give or take a bit), with another US$12 in value associated with cash holdings. That makes the stock a good buy, according to conventional Wall Street trading wisdom, even to Apple execs. That, in turn, means that we might see further insider trading. That's certainly something for which Wall Street will be watching.
Warning: include(/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/extension.inc) [function.include]: failed to open stream: No such file or directory in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 108
Warning: include() [function.include]: Failed opening '/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/extension.inc' for inclusion (include_path='.:/usr/share/php5:/usr/share/php') in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 108
Warning: include(/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/common.) [function.include]: failed to open stream: No such file or directory in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 110
Warning: include() [function.include]: Failed opening '/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/common.' for inclusion (include_path='.:/usr/share/php5:/usr/share/php') in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 110
Warning: include(/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/includes/bbcode.) [function.include]: failed to open stream: No such file or directory in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 112
Warning: include() [function.include]: Failed opening '/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/includes/bbcode.' for inclusion (include_path='.:/usr/share/php5:/usr/share/php') in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 112
Fatal error: Call to a member function sql_query() on a non-object in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 532
- Wed, 8:28 PM
- Apple Context Machine Podcast - ACM 205: Apple Tax Hearings & Samsung’s Delusions
- 5:23 PM
- Product News - Apple Updates iTunes & QuickTime for Windows, Windows 64
- 2:50 PM
- Quick Look Review - Designed by M’s AL13 Aluminum Bumper Is For The iPhone 5 Purist
- 2:02 PM
- News - Penguin Agrees to $75M Payout in ebook Price Fixing Settlement
- 1:00 PM
- In-Depth Review - An iPhone Veteran Evaluates a Samsung Galaxy Note II
- 11:13 AM
- TMO Appearances - Jeff Gamet Discusses Apple Taxes on MacVoices
- 10:25 AM
- Analysis - Corporate Tax Reform Needs to Start in the US, not Ireland
- 8:25 AM
- TMO Quick Tip - iOS Mail: Archive or Delete Individual Emails
- Tue, 8:16 PM
- Analysis - Apple to Senate: We Comply with the Law - Change the Law
- 5:10 PM
- The Back Page - Samsung’s Delusions of Relevance
- 2:11 PM
- Native Instrument Releases Abbey Road 50s Drummer
- 12:47 PM
- News - Senator Paul: Stop Bullying Apple