Tim Cook Just Purchased $3 Million Worth of Nike Shares Along With Another Company Director: Is The Stock Finally Set To 'Win Now?'
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Intel Corporation INTC | 50.38 | +4.89% |
NIKE, Inc. Class B NKE | 44.19 | -0.99% |
Tech giant Apple Inc.’s (NASDAQ:AAPL) CEO, Tim Cook, has just made a notable personal investment in Oregon-based sneaker giant, Nike Inc. (NYSE:NKE)
Tim Cook Expands Nike Holdings
Cook, who has served on Nike’s board since 2005, has acquired 50,000 shares in the company at an average price of $58.97 per share, in a transaction valued at $2.95 million, according to filings made with the Securities and Exchange Commission on Tuesday.
His total position in the popular apparel retailer now stands at 105,480 shares following the purchase, valued at $6.04 million, based on the stock’s closing price on Tuesday, at $57.34 per share.
See Also: Nike Beat Big, But The Market Heard One Word: Tariffs
While Cook has received stock awards to the tune of $179,453 during his two-decade-long stint on Nike’s board, this marks his first-ever open market purchase.
Cook’s purchase comes on the heels of another significant insider purchase from Nike Director and former Intel Corp. (NASDAQ:INTC), Robert Swan, who acquired 8,691 shares in the company, at an average price of $57.54 per share on Monday.
Insider purchases such as these, especially following a period of depressed sentiments surrounding a stock, often indicate a potential turnaround and help instill confidence in the markets, with executives actively vying for more skin in the game.
Nike did not immediately respond to Benzinga’s request for a comment. This story will be updated as soon as we receive a response.
Nike In The Middle of A Turnaround
Shares of Nike are down 65.49% from their all-time high of $166.19 on November 05, 2021, as the company remains focused on a turnaround.
According to the company’s President and CEO, Elliott Hill, Nike is currently in the “middle innings” of its comeback, and remains confident its recent actions will “drive the long-term growth and profitability” across its core portfolio of brands and products.
The company’s “Win Now” strategy, which prioritized running, North America and wholesale, is already showing early wins and is sparking life across key categories.
Analysts Turn Bearish As Tariff Concerns Mount
The stock plunged 11% following its second-quarter results last week, despite topping analyst estimates on the top and bottom lines, as tariff-related concerns continue to weigh on the company’s outlook.
Nike has recently seen a downward revision in its price target by several analysts. On December 19, firms including UBS, Citigroup, Barclays, Truist Securities, and Goldman Sachs maintained their earlier ratings but reduced their price targets. However, the consensus price target, at $80.25 per share, still reflects a significant 39.95% upside from current levels.
Shares of Nike were up 0.21% on Tuesday, closing at $57.34, and are up 2.48% overnight. The stock scores poorly on Momentum, Value and Quality in Benzinga’s Edge Stock Rankings, with an unfavorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.
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- Nike Stock Slips Despite Q2 Earnings Beat, Outlook Expected On Conference Call
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