Ni stock has fallen sharply this year and director John W. Rogers bought a large block of shares in the clothing and footwear giant.
End of June,
stock (ticker: NKE) slipped on the company’s disappointing guidance, which overshadowed both a strong fourth-quarter fiscal report and the announcement of a $18 billion share buyback plan. Stocks have lost a third of their market value this year on fears of slowing sales in China, and analysts rushed to cut estimates ahead of the latest quarterly report.
In this context of pessimism, Rogers paid $1 million on June 30 for 10,000 Nike shares, an average price of $102.96 each, according to a form he filed with the Securities and Exchange Commission. Rogers, chairman, co-CEO and chief investment officer of Ariel Investments, now owns 25,681 Nike shares. He was a director of Nike since 2018.
Ariel Investments said Rogers was unavailable for comment. He last bought Nike shares on the open market in April 2020 when he paid $78,600 for 1,000 sharesat an average price per share of $78.61.
After the company’s fourth fiscal quarter report, Credit Suisse analyst Michael Binetti lowered estimates for Nike’s fiscal year 2023, but retained an outperform rating on the stock with a target price of $130.
Nike set the “right tone” with its advice, which “will likely turn out to be conservative,” Binetti noted in a research report.
Inside Scoop is a regular Barron column that covers the stock trading of corporate executives and board members – the so-called insiders – as well as major shareholders, politicians and other high profile figures. Because of their insider status, these investors are required to disclose stock trades to the Securities and Exchange Commission or other regulatory groups.