Why Are NKE Shares Up Today? Tim Cook Buys Nike Stock
Nike stock rallied in premarket trading on Wednesday, December 24, 2025, following disclosure of significant insider buying activity. Apple CEO Tim Cook, who serves as Nike’s lead independent director and compensation committee chair, purchased 50,000 shares of the sportswear company’s Class B common stock on December 22 at an average price of $58.97 per share, totaling approximately $2.95 million according to regulatory filings.
The purchase boosted Cook’s direct ownership to more than 105,000 shares and signals confidence in Nike’s turnaround strategy under CEO Elliott Hill. Cook has been Nike’s longest-serving board member since joining in 2005.
Tim Cook Purchases $3M of Nike Shares in Open Market
Nike shares were trading at $58.55 in premarket, up $1.21 or 2.11% from the previous close of $57.34 as of 7:02 AM EST on December 24. In addition to Cook’s substantial purchase, independent director Robert Swan also bought 8,691 shares at $57.54, worth approximately $500,000, on the same date. Swan serves as chair of Nike’s Audit and Finance Committee and is designated an audit committee financial expert under SEC rules.
The insider buying comes at a pivotal time for Nike, which is down 24.2% year-to-date with a 52-week trading range of $52.28 to $82.44. Analysts interpreted the moves as a vote of confidence in Nike’s “Win Now” strategy and multiyear turnaround efforts.
Despite beating Wall Street’s second quarter earnings and revenue expectations with Q2 FY26 revenue of $12.43 billion and earnings of $792 million, the company warned of a cautious holiday season, ongoing tariff pressures, and weaker demand in China.
Nike Stock Gains as Insider Activity Draws Attention
Nike currently trades with a market capitalization of $84.76 billion and a trailing price-to-earnings ratio of 33.53. Wall Street maintains a Moderate Buy consensus rating on the stock based on 20 Buy and 9 Hold ratings, with an average price target of $80.00 indicating potential upside of 39.52% from current levels. The most recent analyst action came from UBS on December 19, maintaining a Neutral rating while lowering the price target from $71 to $62.
The company’s financial metrics show a profit margin of 5.43%, return on equity of 17.95%, and total cash of $8.34 billion against a debt-to-equity ratio of 80.10%. Nike reported diluted earnings per share of $1.71 on trailing twelve-month revenue of $46.51 billion.
The stock’s forward price-to-earnings ratio stands at 35.34. Analysts note that Nike’s turnaround plan is taking longer than expected, with the brand continuing to face ongoing challenges in key markets including China.
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Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
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