Insider Activity Report: Nike (NKE)

Robert Swan, a director at Nike (NKE), recently bought 2,941 shares. The buy increased his stake by 15%, and came to a total cost of $226,516.

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  • Swan was the last buyer in October, picking up 13,072 shares for just over $1.25 million. Since then, a few company insiders have been sellers, largely following the exercise of stock options. Going back over the past two years, a similar trend of large insider sales relative to buys continues to hold up.

    Overall, Nike insiders own 1.4% of shares.

    The athletic apparel and shoe company is down 28% over the past year on concerns over a slowing consumer trends on items such as clothing and shoes. Nike has seen revenues drop by nearly 2%. However, earnings have also jumped 43%.

    Meanwhile, shares of the powerhouse brand trade at 20 times earnings. While not a huge discount, its’ a reasonable value for a company with its global presence.

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  • Action to take: Shares look oversold following a recent decline, and could see a reversal trend higher over the coming months. Investors may be able to see double-digit returns, while also collecting a dividend whose yield has been pushed up to 2%.

    For traders, the September $80 calls, last trading for about $1.60, could see high double-digit returns over the coming weeks on a share rebound.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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