Peter Henry, a director at Nike (NKE), recently bought 557 shares. The buy increased his holdings by 16 percent, and came to a total cost of about $70,000.
This is the first buy at the company since last June, when another director picked up 10,000 shares for $1.03 million. Those mark the only insider buys over the past two years. Otherwise, a few company executives have been slight sellers of shares, mostly as stock options are exercised.
Overall, company insiders own 1.3 percent of shares.
The athletic shoe and apparel company is down about 14 percent in the past year, underperforming the S&P 500. That’s despite a 17 percent rise in revenues.
Even with that performance, shares have gone from 48 times earnings last year to about 31 times today, a level still elevated to the overall market.
Action to take: Nike is a powerful brand, and one worth buying on a pullback. To get a reasonable price, traders would do best to wait for a price at or under $95. The stock is a dividend payer with a 1.1 percent yield at today’s prices.
For traders, shares have been rallying since September, but have been starting to turn over in recent sessions. The April $115 put, last going for about $3.85, offers a potential to earn high-double-digit returns on a steeper decline in shares in the coming months.
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.