Apple CEO Tim Cook bought shares of Nike worth $3 million: Report

Apple CEO Tim Cook signals confidence in Nike by acquiring $3 million worth of shares, as per the SEC regulatory filing reported by Reuters. The move comes soon after the company reported a 13% drop in its quarterly results last week. It not only helped sharpen the brand's competitive edge but also provided a much-needed vote of confidence for Nike CEO Elliott Hill. Furthermore, the transaction also doubled Cook’s stake in the company.

Tim Cook’s vote of confidence for Nike 

With the news, Nike’s stock price had reportedly increased by 4.6% on Wednesday, showcasing a sudden surge in demand. The rise was crucial for the sportswear brand after the sluggish sales in China and rising tariff costs. The filing showcased that Cook has bought 50,000 shares at $58.97 per share, and as of December 22, he held about 105,000 shares in Nike. 

Market analysts were quick to notice the rarity of the purchase. As per Jonathan Komp, analyst at Baird Equity Research, it was the largest open market stock purchase among Nike directors and executives. It is also said to be the largest purchase by any Nike insider in over ten years. Komp added, “Cook's move as a positive signal for the progress under CEO Elliott Hill and Nike's 'Win Now' actions.” Hill is focused on reviving innovation and rebuilding relationships with wholesalers to regain the brand's competitive edge and reclaim market share

Well, the investment is not considered to be a coincidence, as Cook has been on Nike’s board since 2005. After co-founder Phil Knight's retirement in 2016, Cook took over the role of lead independent director. Hence, we often spot the CEO wearing Nike gear in public appearances.