Regulatory filings show Apple CEO Tim Cook, Nike’s lead independent director, purchased nearly $3 million worth of the company’s shares. The acquisition, disclosed on December 22, involved 50,000 shares at an average price of $58.97.
Director Robert Swan also purchased 8,691 shares on the same day, bolstering the insider buying narrative. Following the news of these investments, Nike’s (NKE) stock gained about 2% in after-hours trading.
The market views the purchases as a significant vote of confidence in Nike’s major turnaround and recovery strategy. This investment follows a recent 10% drop in the company’s stock price.
The prior decline occurred after Nike warned of a cautious holiday season and persistent weak demand in China. This warning came despite the company beating its second-quarter earnings expectations.