Why did Tim Cook buy Nike stock?

Tim Cook, as Nike's lead independent director, purchased a significant amount of Nike shares, potentially signaling confidence in the company's future performance and turnaround efforts.

Is Nike stock a good investment after Tim Cook's purchase?

Following a major insider purchase by Apple CEO Tim Cook, Nike's stock saw an immediate rise. Investors are now evaluating if this indicates a genuine turnaround is underway for Nike.

What is the state of the global footwear market?

The global footwear market is projected for substantial growth, with expected revenues of around $500 billion in 2025 and an average annual growth rate of 5.52% through 2030.

Home / Business and Economy / Tim Cook Invests Big in Beaten-Down Nike

Tim Cook Invests Big in Beaten-Down Nike

1 Jan

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Summary

Apple CEO Tim Cook bought $2.95 million in Nike shares.
Nike stock saw a significant jump following the purchase.
The footwear market shows strong global growth potential.

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.