When Apple CEO Tim Cook quietly purchased 50,000 shares of Nike in late December—nearly doubling his stake in the athletic apparel giant—it sent a clear message to Wall Street: one of the world's most successful executives believes Nike's troubles are temporary.
Cook's $3 million purchase was soon followed by Nike CEO Elliott Hill, who added $1 million worth of shares to his personal holdings. Former eBay and Intel CEO Robert Holmes Swan, who also serves on Nike's board, purchased an additional $530,000 in stock.
The coordinated buying spree represents the largest open-market insider purchases at Nike in more than a decade, according to Baird Equity Research analyst Jonathan Komp. And it comes at a pivotal moment for a company that has lost nearly half its market value over the past three years.
A Bruising 2025
Nike shares have fallen approximately 19% in 2025, marking the stock's fourth consecutive year of declines. The once-unstoppable sportswear brand has faced a barrage of challenges:
- Leadership transition: Former CEO John Donahoe stepped down after four years of disappointing results, replaced by company veteran Elliott Hill who returned from retirement
- Product innovation concerns: Critics argue Nike has relied too heavily on retro styles while competitors like On Running and Hoka have captured the performance running market
- China weakness: Sales in Greater China, once a key growth driver, have stagnated amid economic uncertainty and intense local competition
- Wholesale relationships: The company's aggressive push toward direct-to-consumer sales damaged relationships with retail partners, a strategy now being partially reversed
The Turnaround Plan
Hill, who spent 32 years at Nike before briefly retiring in 2020, has moved quickly to address the company's problems. His priorities include:
Rebuilding wholesale partnerships: Nike is mending fences with Foot Locker, Dick's Sporting Goods, and other retailers that were alienated under the previous strategy. These partners provide crucial product visibility and distribution that Nike's own stores and website cannot fully replace.
Accelerating innovation: The company is investing heavily in new performance products, particularly in the running and basketball categories where competitors have made inroads.
China execution: With competition from local brands like Anta and Li-Ning intensifying, Nike is refining its approach to the world's second-largest consumer market.
"Elliott knows this company inside and out. He helped build some of Nike's most successful businesses over three decades. If anyone can turn this ship around, it's him—and his willingness to buy stock with his own money shows he believes in the plan."
— Jonathan Komp, Analyst at Baird Equity Research
What the Insider Buying Signals
Insider buying is often considered one of the most reliable bullish indicators in markets. Executives and board members have access to non-public information about a company's prospects, and they're typically reluctant to risk their personal capital unless they're genuinely confident.
Several aspects of the Nike purchases stand out:
Timing: The purchases came near year-end, when executives typically avoid transactions due to blackout periods and tax considerations. Buying anyway suggests urgency and conviction.
Size: Cook's purchase represented a 90% increase in his Nike holdings. Hill's purchase increased his stake by more than 7%. These are meaningful additions, not token purchases.
Coordination: Three separate insiders buying within days of each other suggests they may have discussed the opportunity—and all reached the same conclusion.
The Case for Patience
Bulls argue that Nike's brand remains one of the most valuable in the world, with recognition and emotional connection that competitors cannot easily replicate. The company's scale in manufacturing, distribution, and marketing creates advantages that take decades to build.
Moreover, turnarounds take time. Hill has been CEO for only a few months, and wholesale relationships cannot be rebuilt overnight. Investors who buy now are betting on execution over the next two to three years, not immediate results.
At roughly 29 times forward earnings, Nike's valuation has compressed significantly from its pandemic-era heights, though it remains above the broader market average.
The Risks
Skeptics point to structural challenges that insider buying cannot solve:
- Competitive dynamics: The performance running market has fundamentally shifted, and brands like On, Hoka, and New Balance have captured mindshare that may be difficult to reclaim
- Consumer preferences: Younger consumers increasingly favor smaller, "authentic" brands over established giants
- China uncertainty: Geopolitical tensions and economic weakness make the Chinese market particularly unpredictable
- Margin pressure: Promotional activity to clear inventory has compressed margins, and reversing this trend will take time
The Bottom Line
Insider buying is a confidence indicator, not a guarantee. Nike's challenges are real, and the turnaround will not be quick or easy. But when three highly successful executives—including the CEO of the world's most valuable company—put millions of their own dollars on the line, it merits serious attention.
For long-term investors with patience, Nike's current troubles may represent an opportunity to buy a world-class brand at a discounted price. The insiders seem to think so. Whether they're right will take several years to determine.
