Nike, one of the leading apparel makers, has faced challenges this year as its stock (ticker: NKE) continues to decline. However, a ray of hope emerged when a director made a significant purchase of Nike shares on the open market.
The downward pressure on Nike stock can be attributed to contracting gross margins and underwhelming quarterly reports. Year-to-date, shares have dropped approximately 19%, despite a slight boost from positive forecasts shared by management in the latest quarterly report in late September.
Director Bob Swan recently invested $1.3 million in 13,072 Nike shares, purchasing them at an average price of $96.13 per share. According to a form filed with the Securities and Exchange Commission, Swan now holds a total of 18,005 Nike shares and an additional 1,580 shares through a family trust. Notably, Swan executed this transaction via an automated trading plan implemented on July 3.
Unfortunately, Nike declined to provide a comment from Swan regarding his stock purchase. Additionally, venture-capital firm Andreessen Horowitz, where Swan serves as an operating partner since 2021, did not respond to a request for comment. Swan previously held the position of CEO at chip maker Intel (INTC) from 2019 to 2021.
This acquisition marks Swan’s first purchase of Nike stock since joining as a director in September 2022. Moreover, it surpasses the stock-ownership guidelines set by the company. Nike mandates that nonemployee directors own shares worth five times the annual cash retainer, which amounted to $100,000 in fiscal 2023, within five years of their election to the board.
It is worth noting that “Inside Scoop” is our regular feature that covers stock transactions made by corporate executives and board members—commonly known as insiders—as well as prominent figures such as large shareholders and politicians. These individuals, due to their insider status, are obligated to disclose their stock trades with the Securities and Exchange Commission or other regulatory groups.