Nike Investment Soars: Tim Cook Bolsters Portfolio with $3 Million Worth of Shares

Tim Cook doubles his bet on Nike. Apple’s CEO and a member of Nike’s board of directors since 2005 has bought shares in the sports equipment group worth about three million dollars. The deal nearly doubles his stake in the company to a value of approximately six million, Reuters reports.

The acquisition was made public through a Form 4 filed with the Securities and Exchange Commission (SEC), the U.S. securities regulator, as required by regulations for stock transactions by directors and senior management.

According to this official document, Cook bought 50,000 shares at an average price of $58.97 per share. After learning of the transaction, Nike shares reacted upwards and closed the session with a 4.6% rise to around $60, although still far from its 52-week high of $82.44.

Once the operation had been announced, reactions from agencies and the media were swift, interpreting this move by Cook as an endorsement of the management of Nike’s new CEO, Elliott Hill, who in his first months has turned the strategy of the world’s largest sports business group around.

The market and agencies interpret Tim Cook’s purchase as a vote of confidence in Elliott Hill’s management

The transformation plan that Hill is carrying out takes place in a context of pressure on the profitability of the U.S. company. Since the presentation of results on December 18th, the Nike share has accumulated a decline of close to 13%, reflecting the market’s doubts about the evolution of the business.

Nike is going through a period marked by weak margins and slowing sales in China, one of its main markets. In the last quarter, revenues in the Asian country fell by 17% to $1.42 billion, a setback that has weighed on forecasts and has intensified the need to successfully implement the new strategic direction.