The move nearly doubles Cook's personal stake in Nike and was interpreted by analysts as a significant show of confidence in Nike's ongoing turnaround strategy under its current leadership.
Cook, who has served on Nike's board since 2005 and holds the role of lead independent director, acquired the shares at an average price of $58.97 each in an open‑market transaction on December 22.
After the purchase, his total holding in the company stands at about 105,000 shares, making this one of the largest direct stock purchases by a Nike director in more than a decade.
The stock market reacted positively. Nike's shares closed up 4.6% on Wednesday, reversing some of the pressure the stock has faced in recent sessions. The rally followed the disclosure of Cook's trade and reflected investor optimism that insider buying by major figures can signal confidence in the company's prospects.
Nike has grappled with challenges this year, including weak profit margins and slower sales growth in key markets such as China. The company's shares have been under significant pressure, trading down nearly 13% since its earnings report on December 18 and marking several years of performance declines relative to broader market peers.
Under the leadership of CEO Elliott Hill, Nike has been implementing a turnaround strategy focused on reviving innovation and strengthening demand. Hill's plans also include renewed marketing efforts and efforts to rebuild relationships with major wholesalers to bolster visibility and sales.
Analysts and portfolio managers viewed Cook's transaction as more than just a personal investment decision a vote of confidence in Nike's strategy. 'For Tim Cook to be an inside buyer is a modest positive,' said one market participant, highlighting the symbolic weight of such a high‑profile insider purchase.
In addition to Cook's move, other Nike board members have also made insider purchases, further reinforcing the narrative of executive confidence amid a challenging period for the brand.
Rania Umutoni
