The largest open market stock purchase by a Nike director in over a decade has provided a rare insider endorsement as the sportswear giant battles weak margins and four straight years of declining shares while CEO Elliott Hill works to rebuild wholesale relationships and revive growth.
Apple CEO Tim Cook has purchased 50,000 shares of Nike stock for nearly $3 million (€2.9m), doubling his personal stake in the sportswear company and providing a rare vote of confidence as it navigates one of the most challenging periods in its history. Nike shares rose 5 percent following news of the purchase, which was disclosed in a Securities and Exchange Commission (SEC) filing.
Cook, who has served on Nike’s board since 2005, bought the shares on Dec. 22 at a weighted average price of $58.97 (€56.30) each, bringing his total direct ownership to approximately 105,000 shares worth nearly $6 million (€5.7m). The purchase represents the largest open market stock buy by a Nike director or executive in more than a decade, according to Jonathan Komp, an analyst at Baird Equity Research. “We see Cook’s move as a positive signal for the progress under CEO Elliott Hill and Nike’s ‘Win Now’ actions,” Komp said.
Insider confidence amid strategic turbulence
The stock purchase comes days after Nike reported quarterly earnings that beat expectations but revealed continued operational challenges. The company warned of lower single-digit revenue declines in the upcoming holiday period and faces ongoing pressure from higher tariffs and weak demand in China, its second-largest market.
Nike CEO Elliott Hill, who returned to lead the company in October 2024 after serving in various roles there for 32 years, has implemented a turnaround strategy focused on reviving demand through fresh marketing campaigns and innovation centered on running and sports performance. Hill has also worked to mend relationships with wholesale partners such as Dick’s Sporting Goods to increase brand visibility amid intensifying competition from newer athletic brands.
However, the strategy has strained Nike’s profit margins, which have been declining for over a year, while efforts to regain market share in price-sensitive China appear to be faltering. Nike shares have slumped nearly 13 percent since the company reported results on Dec. 18 and are on track for a fourth consecutive year of declines.
Cook’s long tenure and strategic influence
Cook has been Nike’s lead independent director since 2016, when co-founder Phil Knight stepped down as chairman. As the board’s longest-tenured director and chair of the compensation committee, Cook has advised Nike through key strategic decisions, including Hill’s appointment last year. Komp noted that Cook “remains extremely close” with Knight.
The insider buying extended beyond Cook. Board director and former Intel CEO Robert Swan also purchased approximately 8,700 shares for about $500,000 (€478,000) this week, adding to the narrative of director confidence in Nike’s recovery prospects.
Market seeks execution clarity
For investors, insider purchases like Cook’s are often interpreted as signals of confidence in a company’s long-term prospects, particularly during periods of subdued stock performance. However, analysts caution that sustained recovery will depend on Nike’s ability to execute its turnaround plan, make progress in key international markets and navigate macroeconomic headwinds including tariff pressures.
Nike shares were trading at $60.19 (€57.47) on Wednesday Dec 24 following the news of Cook’s purchase.
About Tim Cook and Elliott Hill
Tim Cook has served as CEO of Apple since 2011 and joined Nike’s board in 2005. He became lead independent director in 2016 and chairs the board’s compensation committee. Cook is known for his close relationship with Nike co-founder Phil Knight.
Elliott Hill rejoined Nike as CEO in October 2024 after retiring from the company in 2020. Hill spent 32 years at Nike in various leadership roles before his initial departure and was brought back to lead a comprehensive turnaround effort.
