NEW YORK — Nike shares traded higher on Wednesday, December 24, 2025, after a regulatory filing showed Apple CEO Tim Cook bought nearly $3 million worth of Nike stock, a notable insider purchase that investors quickly interpreted as a vote of confidence following a bruising post-earnings selloff. [1]
Cook, who has served on Nike’s board since 2005 and is the company’s lead independent director, purchased 50,000 shares of Nike Class B common stock on December 22 at a weighted average price of $58.97, according to an SEC Form 4 filed on December 23. [2]
The disclosure helped lift Nike shares about 2% in premarket trading on Christmas Eve, even as U.S. stock index futures were modestly lower in a shortened trading session ahead of the holiday. [3]
What Tim Cook bought — and what the filing actually shows
The SEC filing indicates Cook’s purchase was executed as an open-market transaction, with the reported price reflecting a weighted average. The Form 4 notes the shares were purchased in multiple transactions within a tight range of $58.96 to $58.97. [4]
After the trade, Cook’s directly owned Nike stake rose to 105,480 shares. [5]
In an additional detail often overlooked in headline coverage, the Form 4 also reiterates Nike’s internal policy for when officers and directors may trade company stock: market transactions are generally permitted only after the first full trading day following the quarterly earnings release and through a defined window later in the quarter, unless done under an approved 10b5-1 plan. [6]
For investors, that context matters. It suggests the purchase occurred during an allowed trading window soon after Nike’s earnings report — not an off-cycle move — but it is still a sizable personal buy from a high-profile director at a moment when sentiment around Nike has been fragile.
Why Nike stock has been under pressure heading into Christmas Eve
Cook’s buy landed only days after Nike reported results that beat some expectations on revenue but raised fresh concerns about profitability, tariffs, and the pace of a global turnaround — particularly in China.
Nike said fiscal 2026 second-quarter revenues were $12.4 billion, up 1% year over year, while gross margin declined 300 basis points to 40.6% and diluted earnings per share were $0.53. [7]
Management framed the performance as progress, but uneven progress. In its earnings release, CEO Elliott Hill said, “NIKE is in the middle innings of our comeback.” [8]
Reuters reporting from the earnings cycle underscored the core tension: Nike is attempting to “reset” parts of its business and product mix, but that strategy can bring near-term margin pain due to discounting older inventory and leaning more on wholesale partners. [9]
The pressure point investors keep circling is Greater China. Reuters reported Nike’s sales in China fell 17%—the sixth straight quarterly decline—adding to doubts about how quickly the brand can regain traction in a critical market. [10]
Tariffs are another looming headwind. Nike’s finance chief reiterated expectations that tariffs tied to imports from Southeast Asian manufacturing hubs would cost the company about $1.5 billion this year, Reuters reported. [11]
Against that backdrop, Nike shares had fallen sharply after the earnings release. Reuters noted the stock had slid nearly 13% since the results were reported on December 18, setting the stage for a “buy the dip” narrative once Cook’s purchase became public. [12]
It wasn’t just Cook: another Nike director also bought shares
Cook wasn’t the only Nike board member stepping in.
A separate SEC Form 4 shows director Robert Holmes Swan purchased 8,691 shares of Nike Class B common stock on December 22 at $57.54 per share. After the transaction, Swan directly owned 43,293 shares, plus 1,580 shares held indirectly through a trust, according to the filing. [13]
While Swan’s buy was smaller in dollar terms, the timing matters: two directors buying on the same day, right after a selloff, increases the odds that markets interpret the activity as a coordinated expression of confidence in the company’s long-term plan — even if the filings do not suggest any formal coordination.
Why insider buying moves markets — and why it can be misread
Insider buying doesn’t guarantee a stock bottom. But it often gets attention for a simple reason: executives and directors typically have a deeper, longer-term view of the business than the average investor, and purchases with personal funds can signal that insiders believe the market has overreacted.
In Nike’s case, the message investors appear to be weighing is straightforward:
- The near-term story (margins, tariffs, China) remains challenging.
- The long-term brand equity and operational reset may still be intact.
- Directors closest to Nike’s strategy are willing to add exposure after a decline.
At the same time, insider purchases can also reflect conviction that the company is undervalued relative to a multi-year horizon — not confidence that the next quarter or two will be smooth. Nike itself has cautioned that near-term performance could remain pressured, and Reuters reported the company expects third-quarter revenue to be down in the low single digits, with additional margin headwinds. [14]
The turnaround context: what Nike says it’s fixing
Nike’s latest earnings communications lay out the framework of its current operating reset:
- Rebuilding its wholesale business (Nike reported wholesale revenue growth while Nike Direct declined). [15]
- Rebalancing its portfolio and refreshing product innovation. [16]
- Managing pricing and promotions while clearing older inventory — a process that can weigh on gross margin in the short term. [17]
Nike also emphasized financial resilience: it reported net income of roughly $0.8 billion for the quarter (down 32% year over year), and noted shareholder returns including dividends, while acknowledging that higher tariffs have lifted product costs. [18]
None of that eliminates the immediate investor debate: how long will it take for the “reset” to produce cleaner margins and more consistent growth, especially if China remains soft and trade costs stay elevated?
Cook’s purchase doesn’t answer that question — but it does show at least one influential board member is prepared to bet on the outcome.
Market backdrop on December 24: Christmas Eve trading and “Santa rally” chatter
The timing also amplified the story’s visibility. December 24 is typically a low-volume session, and in 2025 U.S. markets were scheduled to close early for Christmas Eve. [19]
Reuters reported investors were watching whether stocks could extend a strong year-end run and enter the so-called “Santa Claus rally” period, a seasonal stretch often associated with gains in the final trading days of the year and early January. [20]
In that kind of tape — thinner liquidity, headline-driven moves — an insider purchase by one of corporate America’s most recognizable CEOs can have an outsized effect on short-term sentiment, even if the long-term fundamentals remain the true driver.
What investors will watch next for Nike
With the insider buys now public, attention shifts back to Nike’s operational scorecard. The key questions likely to dominate the weeks ahead:
- China stabilization: Can Nike slow or reverse the multi-quarter decline in Greater China revenue? [21]
- Tariff and margin management: How much of the tariff impact can Nike offset through pricing, sourcing, and mix — and how quickly? [22]
- Holiday-quarter performance: Nike has warned of pressure in the current quarter; investors will scrutinize demand and promotional intensity. [23]
- Turnaround clarity: Nike leadership has described the recovery as “middle innings,” but Wall Street continues to seek more specificity on timing and milestones. [24]
For now, the Christmas Eve headline is clear: Nike got a high-profile show of insider confidence at a moment when the stock had been punished — and the market responded quickly, even if the company’s turnaround case remains a longer-duration debate. [25]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.sec.gov, 5. www.sec.gov, 6. www.sec.gov, 7. investors.nike.com, 8. investors.nike.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.sec.gov, 14. www.reuters.com, 15. investors.nike.com, 16. investors.nike.com, 17. www.reuters.com, 18. investors.nike.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.reuters.com, 22. www.reuters.com, 23. www.reuters.com, 24. www.reuters.com, 25. www.reuters.com
