Apple CEO Tim Cook gave Nike’s stock a boost on Wednesday after regulatory disclosures revealed that he bought $3 million worth of the sportswear giant’s shares.
Cook upped his stake in the company by roughly half and pulled in 50,000 shares at $58.97 each, according to the filing. He now holds around 105,000 shares. Meanwhile news of Cook’s move was seen in the market as a vote of confidence of Nike current turnaround efforts.
Shares surged by as much as 5.6 percent during a holiday-shortened trading day and closed by 4.7 percent.
Last week Nike gave a mixed roundup of its second quarter in its earnings report with a sixth straight decline in China — at 17 percent — pulling the company to just a 1 percent climb during the period. North American sales were up 9 percent and were a bright spot as Europe, Middle East, and Africa revenue climbed 3 percent.
The report sent Nike close to its 52-week low as CEO Elliott Hill emphasized his “Win Now” initiative that includes changes at the executive ranks and trimming redundant layers of management.
“Nike is in the middle innings of our comeback, Elliott Hill said in the earnings report. “We are making progress in the areas we prioritized first and remain confident in the actions we’re taking to drive the long-term growth and profitability of our brands.
Meanwhile, Cook increasing his shares is a sign to investors that Hill’s reset plan for Nike is worth backing.
Cook has served on Nike’s board since 2005 and has been its lead independent director since 2016 when Nike co-founder Phil Knight left as chairman, a year after announcing he would step down. Cook’s stake in Nike is now worth $6.3 million.
