Robert Swan, a director at Nike (NKE), recently bought 13,072 shares. The buy increased his stake by 201 percent, and came to a total cost of $1,256,600.
This marks the first insider buy since February, when another director bought 557 shares, paying just under $70,000. The share price is down over 25 percent since that buy. Several company executives have been sellers of shares in the ensuing months.
Overall, Nike insiders own 1.4 percent of shares.
Despite the big drop from its 52-week high of $131.31, shares are still up about 5 percent over the past year.
Nike has done well expanding its sales overseas in recent years, but fears of a global slowdown have weighed on those prospects this year. Over time, Nike has been one of the stock market’s top performers, despite the recent weakness.
Revenues are up 2 percent, but earnings have dipped about 1 percent, reflecting the impact of higher costs on profitability.
Action to take: The company has a strong brand, and will recover from this recent hit by the market this year. Shares look attractive under $100, and at current prices, the stock yields about 1.4 percent.
For traders, shares look oversold at current levels and ready to trend higher in the months ahead. The January 2024 $110 calls, last going for about $8.80, could see mid-to-high double-digit gains.
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 of the companies mentioned in this article.