Nike Stock Price Gets a Lift After Apple’s Tim Cook Doubles His Stake
The retailer’s lead independent director bought $2.9 million in shares days after the stock fell on a disappointing forecast
- Apple CEO Tim Cook purchased 50,000 Nike shares for $2.9 million, nearly doubling his personal stake to 105,480 shares.
- Nike’s stock rose almost 5% to $60.19 after the disclosure of Cook’s investment, partially reversing recent losses.
- Cook’s investment provided support for Nike, which has been working on a turnaround amid sagging sales and a recent 10.5% stock plunge.
Apple Chief Executive Tim Cook gave Nike NKE 4.64%increase; green up pointing triangle an early Christmas gift.
Shares of the sportswear retailer jumped Wednesday after the company disclosed that Cook, the lead independent director on its board, nearly doubled his personal stake by buying $2.9 million of its stock.
His investment provided a jolt of support for Nike, which has been plotting a turnaround after losing ground to rivals and seeing sales sag.
Nike has sought to reverse its fortunes under CEO Elliott Hill, trying to repair relationships with retailers and reinvigorate the company’s product innovation.
Yet its efforts have been hamstrung by tariffs and other issues. Last week, Nike projected sales would drop in the current quarter because of ongoing weakness in China.
The disappointing forecast prompted shares to fall, including a 10.5% plunge that was their largest one-day drop since April.
The stock partially reversed the losses after Nike reported Cook’s stock purchase. Shares rose almost 5% to $60.19 in Wednesday morning trading.
Cook has been the lead independent director on Nike’s board since 2016 after joining it in 2005.
The Apple chief executive bought 50,000 Nike shares at an average price of $58.97 on Monday, the sportswear retailer disclosed in a filing with the Securities and Exchange Commission.
He now holds 105,480 shares of the company, according to the filing.
The company reported that another director also bought shares.