NIKE, Inc. (NYSE: NKE)
$57.34 | +0.12 (+0.21%)
As of Dec-23-2025, 4:10 PM ET

FUNstock Index™: 8.7 / 10 🎯

Nike doesn’t need an introduction. Swoosh. Air Jordans. Olympic podiums. Michael Jordan. Serena Williams. Entire closets built around “Just Do It.”

But markets have memories — and Nike’s stock hasn’t been sprinting lately. After peaking near $179 in late 2021, shares are now down roughly 68% from all-time highs, hovering close to five-year lows.

So when Tim Cook — yes, that Tim Cook — quietly buys nearly $3 million worth of Nike shares, investors should probably stretch and pay attention.

Let’s lace up.

Trigger #1: Insider Buys — And Not Just Anyone

Two notable insider purchases hit the tape on December 22, 2025:

Yes — that Tim Cook.

Cook has served on Nike’s board since 2005 and currently acts as Lead Independent Director, while simultaneously running Apple (you may have heard of it). He’s not known for speculative trades or hype chasing.

He’s known for discipline, long time horizons, and seeing around corners.

Does this guarantee a win? No.
Does it significantly raise the signal-to-noise ratio? Absolutely.

As FUNanc1al likes to say: insiders don’t buy for dividends — they buy because something looks mispriced.

Trigger #2: Institutions Still Own the Track

Nike remains one of the most institutionally held consumer stocks on Earth:

• 83.4% of shares held by institutions

• 2,800+ institutional holders

• Vanguard, BlackRock, State Street, Capital World, JPMorgan, Fidelity — the full marathon pack

That said, institutional ownership is already high, meaning new buying pressure won’t come from “discovery” — it’ll come from conviction if execution improves.

Translation: Nike doesn’t need new believers. It needs better quarters.

For Nike (NKE)’s Institutional Ownership breakdown, 🔍 see here.

Trigger #3: Shorts Are Rare (and Not Dangerous)

Short interest currently sits around 3.55% — low enough to indicate:

• Minimal bearish conviction

• Little risk of structural selling pressure

• No artificial downside anchor

This isn’t a short-squeeze story. It’s a re-rating story if fundamentals stabilize.

Trigger #4: Analysts — Cautiously Bullish, Watching Execution

Wall Street’s stance on Nike can be summarized as:

“We still love the brand. Now prove it again.”

• Consensus: Moderate Buy / Buy

• Average price targets: ~$78–$87 (40%+ upside)

• Bullish targets go north of $110 (double current price!)

• Conservative targets hover near $62

Analysts see long-term strength but want clarity on:

• Digital strategy

• Margins under tariff pressure

• China stabilization

Fair concerns — not dealbreakers.

Trigger #5: Price vs. History — This Is Where Quality Goes on Sale

Nike now trades:

• Near five-year lows

• ~68% below ATH

• Below its 10-year average P/E (~36x)

Current valuation snapshot:

• Trailing P/E: ~33x

• Forward P/E: ~35x

• EV/Sales: ~1.9x (reasonable)

• Dividend yield: ~2.9% (rarely this generous for Nike)

Is it cheap? Not “distressed cheap.”
Is it cheap for Nike? Getting there.

Quality brands rarely trade at fire-sale prices — but they do go on clearance.

Trigger #6: Earnings — Not Pretty, But Not Broken

Fiscal Q2 2026 (reported Dec-18-2025):

• EPS: $0.53 (beat)

• Revenue: $12.43B (beat)

• Wholesale: +8%

• Nike Direct: −9%

• Gross margin: 40.6% (down 300 bps due to tariffs)

Translation:

• The company is still profitable

• Wholesale momentum is working

• Digital strategy needs recalibration

• Tariffs hurt — but are cyclical, not existential

CEO Elliott Hill summed it up best:

“We’re in the middle innings of our comeback.”

Not a victory lap — but not a panic speech either.

 👉 Want the full picture? Dive into Nike (NKE)’s financials here.

Why Investors Are Paying Attention Again

The Bull Case

• Legendary global brand with pricing power

• Turnaround leadership focused on execution

• Shareholder returns: dividends + buybacks

• Insider buying from elite operators

• Stock price reset creates asymmetric upside

The Risks

• China remains unpredictable

• Digital execution must improve

• Tariffs pressure margins

• Growth is sluggish near-term

This isn’t a rocket ship. It’s a marathon runner recovering from injury.

Quick Take / TL;DR ⚡

• Tim Cook buying Nike is not random

• Institutions never left

• Valuation is reasonable vs. history

• Earnings show resilience, not collapse

• Execution matters — but odds are improving

FUNstock Index™: 8.7 / 10 🎯
Not cheap — but quality rarely is.

FAQ

Is Nike a value stock now?
Not classic value — but it’s attractively priced for a blue-chip brand with recovery potential.

Why does Tim Cook’s buy matter?
Because insiders with long track records don’t buy casually — especially not in seven figures.

Is Nike’s dividend safe?
Most likely. Nike has raised dividends for 24 consecutive years.

What could go wrong?
Prolonged China weakness, margin pressure, or stalled digital execution.

Final Word

Nike doesn’t need reinvention.
It needs refinement.

If the turnaround sticks, today’s prices may look like the warm-up lap before the real race begins.

Just do it — but invest at your own risk.

About the Author

Frédéric Marsanne is the founder of FUNanc1al — part market analyst, part storyteller, part accidental comedian.

A longtime investor, entrepreneur, and venture-builder across biotech, tech, and finance, he now blends sharp insights with a twist of humor to help readers laugh, learn, live better lives, and invest a little wiser.

When not decoding insider buys or poking fun at earnings calls, he’s building Cl1Q, writing fiction, painting, or discovering new passions to FUNalize.

🧾⚠️📢 Fun(anc1al) but Serious Disclaimer: 🧾⚠️📢

This article blends research and entertainment — not financial advice.
Markets may sprint, jog, or trip over their own laces.
Invest at your own risk.

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