Nike Shares Rise 4% as Apple CEO Tim Cook Doubles Personal Stake in Sportswear Giant
Apple CEO Tim Cook purchased 50,000 Nike shares at $58.97 each, doubling his personal stake to approximately 105,000 shares. This significant investment, valued at about $2.95 million, is seen as a vote of confidence in CEO Elliott Hill's turnaround strategy for Nike. The news caused Nike's shares to gain nearly 4%, despite recent margin pressures and sluggish sales in China. Cook's purchase is noted as the largest open market stock acquisition by a Nike director or executive in potentially over a decade.
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Nike shares gained nearly 4% after Apple CEO Tim Cook doubled his personal stake by purchasing 50,000 shares at $58.97 each, signaling confidence in CEO Elliott Hill's turnaround strategy despite recent margin pressures.
Major Stake Increase by Apple CEO
Cook purchased 50,000 shares at $58.97 each, according to regulatory filings, bringing his total Nike holdings to approximately 105,000 shares as of December 22. The investment details are outlined below:
| Parameter | Details |
|---|---|
| Shares Purchased | 50,000 |
| Purchase Price | $58.97 per share |
| Total Investment | Approximately $2.95 million |
| Current Holdings | ~105,000 shares |
| Current Value | Nearly $6 million |
Jonathan Komp, analyst at Baird Equity Research, noted this represents the largest open market stock purchase by a Nike director or executive in potentially more than a decade. Komp characterized Cook's move as "a positive signal for the progress under CEO Elliott Hill and Nike's 'Win Now' actions."
CEO Hill's Turnaround Strategy
The purchase comes days after Nike reported weaker quarterly margins and sluggish sales in China, highlighting the challenges facing Hill's revival strategy. The CEO has implemented several key initiatives:
- Fresh marketing plans focused on running and sports
- Innovation-driven product development
- Phasing out lagging lifestyle brands
- Rebuilding relationships with wholesalers like Dick's Sporting Goods
- Increasing brand visibility among shoppers
However, these strategic efforts have strained Nike's margins, which have been declining for over a year. The company's attempts to regain its premier position in the discount-friendly Chinese market appear to be facing continued headwinds.
Cook's Leadership Role at Nike
Cook has served on Nike's board since 2005 and became lead independent director in 2016 when co-founder Phil Knight stepped down as chairman. According to Komp, Cook "remains extremely close" with Knight and has advised Nike through key strategic decisions, including Hill's appointment as CEO last year.
Stock Performance Context
| Metric | Performance |
|---|---|
| Recent Decline | -13% since December 18 results |
| Wednesday Trading | $59.44 |
| Market Reaction | +4% following Cook's purchase |
| Annual Trend | On track for fourth straight year of declines |
Despite the positive market reaction to Cook's investment, Nike shares have slumped nearly 13% since the company reported results on December 18 and remain on track for the fourth consecutive year of declines. The shares were trading at $59.44 on Wednesday following the announcement.
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