Tim Cook Invests Big in Beaten-Down Nike

Apple CEO Tim Cook, Nike's lead independent director, recently acquired approximately 50,000 Nike Class B shares valued at $2.95 million. This substantial open-market purchase nearly doubled his existing stake and significantly impacted Nike's stock, which experienced a jump of 2-5% in trading on December 24, 2025. This event underscores the contrast between Nike's stock performance and the robust growth projected for the global footwear market, expected to reach $500 billion in 2025 with steady annual growth.

The athletic apparel giant, Nike, operates a mixed business model, selling through wholesale partners and its direct-to-consumer digital channels. Despite its global brand recognition, the company's stock has faced challenges, declining 19% over the past 52 weeks. However, recent activity shows a 6% increase in the last five trading days, and the insider purchase has added momentum.

Valuation metrics place Nike's forward P/E at 38.16x, notably higher than the consumer discretionary sector average. The company maintains a dividend yield of 1.61%, with 23 consecutive years of payout increases. However, a high forward payout ratio of 93.69% suggests limited immediate room for substantial dividend hikes, indicating that while brand strength persists, operational execution remains the key focus for investor confidence.