BUZZ-Nike up after CEO Hill buys stock worth $1 mln
Nike's shares rose 2.1% to $62.47 after CEO Elliott Hill purchased $1 million worth of stock. This follows a $3 million stock buy by board director Tim Cook. Analyst Simeon Siegel noted that insider purchases are encouraging despite recent challenges, including a drop in gross margins and sales in China. However, improvements in North America and marketing efforts suggest potential recovery. Year-to-date, Nike's stock is down 19.13%, marking a trend of four consecutive years of declines.
Sportswear giant Nike’s (NKE.N) shares rise 2.1% to $62.47 premarket
SEC filing shows CEO Elliott Hill bought stock for about $1 million, or 16,388 shares at $61.1 apiece, on Monday Apple (AAPL.O) CEO and Nike board director Tim Cook also bought NKE stock worth $3 million last week, in a move that sent shares up 5%
Personal stock purchases by Nike insiders was “possibly most encouraging” in the current environment for the footwear maker, says Simeon Siegel, analyst at Guggenheim Securities
NKE reported a drop in gross margins for Q2 and a sixth straight quarterly sales drop in China earlier this month
However, sustainable improvement in sales in North America and increased marketing were signs that the worst may be behind Nike, Siegel says
As of last close, NKE down 19.13% YTD, on track for its fourth straight year of declines
