Apple CEO Tim Cook, who’s been on Nike’s board for 20 years, just doubled his stake in the company. The news helped ease a 13% drop after the company’s disappointing quarterly results last week.
Tim Cook signals confidence in Nike CEO Eliott Hill
If you’re into sneakers, you’ve probably noticed how Tim Cook tends to wear flashy Nikes during some of his public appearances.
That is no coincidence. Cook has served on Nike’s board since 2005 and, in 2016, stepped into the role of lead independent director after co-founder Phil Knight retired as chairman.
Yesterday evening, a Statement of Changes in Beneficial Ownership posted on Nike’s investor website revealed that Cook acquired 50,000 Nike shares on December 22nd at $58.97 each, bringing his total stake to 105,480 shares.
The move was well-timed, as Nike shares fell roughly 10% immediately after the company posted disappointing quarterly results on December 18, extending losses to about 13% in the days that followed.
After the filing revealing Tim Cook’s purchase, however, Nike shares jumped by approximately 5% at the market open today. The rebound was also supported by a second Statement of Changes in Beneficial Ownership, which showed that Bob Swan, the former CEO of Intel, had also acquired 8,791 shares, increasing his total stake to 43,293 shares.
As reported by Reuters, the market saw Cook’s move in particular as a public vote of confidence in Nike’s CEO Elliott Hill, in the face of the unfavorable moment:
It was the largest open market stock purchase for a Nike director or executive and possibly the largest in more than a decade, said Jonathan Komp, analyst at Baird Equity Research.
“(We see) Cook’s move as a positive signal for the progress under CEO Elliott Hill and Nike’s “Win Now” actions,” Komp said.
What’s your take on Cook’s decision to double his stake in Nike? Let us know in the comments.
Accessory deals on Amazon
FTC: We use income earning auto affiliate links. More.
