Apple CEO Tim Cook Just Bought $3 Million of Nike Stock. Should You Load Up on NKE Too?

Company Overview - Nike has faced challenges in rebuilding investor trust after disappointing quarterly performances, with shares down over 26% from their 52-week high [1] - The company operates a mixed business model, selling through wholesale partners and direct-to-consumer channels, including digital platforms [5] Recent Developments - Apple CEO Tim Cook, who has been Nike's lead independent director since 2016, purchased 50,000 Class B shares at an average price of $58.97, totaling $2.95 million, nearly doubling his stake to approximately 105,000 shares [2] - Following Cook's purchase, Nike's stock reacted positively, jumping between 2% and 5% in premarket and early regular-session trading [3] Market Context - The global footwear market is projected to generate around $500 billion in revenue in 2025, with an annual growth rate of 5.52% through 2030, indicating a demand for shoes despite Nike's execution issues [3] Financial Performance - Over the past 52 weeks, Nike's shares have slipped 19%, with a 13% decline in the past three months, although there has been a recent uptick of 6% in the last five trading days [5] - Nike currently trades at a forward P/E of 38.16x, significantly higher than the consumer discretionary sector average of 17.83x, suggesting the market views Nike as a higher-quality stock with stronger long-term potential [6] - The company has a consistent dividend yield of 1.61%, with the most recent dividend being $0.41 per share, and has raised its payout for 23 consecutive years, although a high forward payout ratio of 93.69% indicates limited room for significant increases [6]