Insiders Are Buying and Selling Shares In This Iconic Sports Apparel Company

A  number of insiders at Nike Inc. (NYSE:NKE) have recently sold large stakes in the company.  However, it doesn’t seem to be much of a concern, as those insiders, especially the executives listed below, continue to hold large stakes in the company. See Why This Top Apparel Company Is Seeing Narrower Profit Margins>>

Overall, the company seems fairly healthy financially.  Its margins for 2010 were: a net profit margin of 10.03%, an operating margin of 13.24% and EBITD margin of 14.85%.  Its return on average assets was 13.78% and its return on average equity was 20.67%.  At 18.5 its trailing twelve month earnings, the stock is rather expensive at $78.14 per share.  Its price-to-book ratio is 3.74 and its price-to-sales ratio is 1.84.  Given its market capitalization of just over $37 billion, its debt load of $613 million is very manageable.  Its 52-week high is $92.49 and its 52-week low is $66.34.  Its 200-day moving average is $83.69 and it is currently trading at $78.13.  Its beta is 0.93, suggesting that the stock is almost perfectly correlated with the overall market’s movements.

Recent insider transactions include:

  • David J. Ayre, who is a Vice President, exercised 10,625 options on December 30th at a cost of $52.44 per share.  He subsequently sold 10,625 shares at a market price of $86 per share on December 30th.  The net proceeds of these transactions were $356,575.  He presently holds 21,691 shares worth approximately $1,600,000 as of today’s trading.
  • Timothy D. Cook, who is a Director, exercised 10,000 options at a cost of $42.99 per option on December 21st.  He subsequently sold 10,000 shares at a market price of $91 per share on December 21st.  The net proceeds from these transactions were $480,150.  He presently holds 0 shares in the company. He is the Chief Operating Officer of Apple, Inc. (NASDAQ:AAPL).  He previously worked at Compaq Computer (NYSE:HP) and IBM (NYSE:IBM).
  • John C. Lechleiter, who is a Director, bought 500 shares at a market price of $76.15 on March 23rd.  He presently holds 1,500 shares, worth approximately $116,000 as of today’s trading. He is Chairman of the Board, President, and Chief Executive Officer of Eli Lilly & Company (NYSE:LLY).
  • Mark G. Parker, who is President & Chief Executive Officer of Nike, exercised 15,446 options at a cost of $26.12 per option on March 4th, and 34,554 options at a cost of $26.12 per option on March 7th.  He subsequently sold 50,000 shares at a market price of $90 on March 7th.  The net proceeds of these transactions were $3,194,000.  He presently holds 272,334 shares in the company, worth approximately $21 million as of today’s trading.  He is responsible for the growth of Nike, Inc’s global business portfolio, which includes Cole Haan, Converse, Inc., Hurley International LLC, and Umbro Ltd.
  • Orin Smith, who is a Director, bought 2,700 shares at a market price of $76.68 on March 30th.  He presently holds 2,700 shares in the company, worth approximately $210,000 as of today’s trading.  He was the President and Chief Executive Officer ofStarbucks Corporation (NASDAQ:SBUX).  He also serves on the Board of Directors of the Walt Disney Company (NYSE:DIS)

Other insiders include:

  • Phillip H. Knight: Chairman of the Board of Directors.  He is the co-founder of Nike.
  • John G. Connors: member of the Board of Directors.  He is also a member of the Board of Directors of Jobster, Inc.; Admit One Security, Inc.; FIREapps, Inc.; DataSphere Technologies, Inc.; and Splunk Inc.
  • Jill K. Conway: member of the Board of Directors.  She is a professor at MIT.  She is also a director at Colgate-Palmolive Company (NYSE:CL) and previously served on the board of Merrill Lynch (NYSE:BAC).
  • Ralph D. DeNunzio: member of the Board of Directors.  He is President of Harbor Point Associates, Inc., a private investment and consulting firm and has previously served as Vice Chairman and Chairman of the Board of Directors of the New York Stock Exchange (NYSE:NYX).
  • Alan B. Graf, Jr.: member of the Board of Directors.  He is Executive Vice President and Chief Financial Officer of FedEx Corporation (NYSE:FDX).  He is also a director of Mid-America Apartment Communities, Inc. (NYSE:MAA).
  • Douglas G. House: member of the Board of Directors.  He is a partner in the Portland, Oregon law firm Bullivant, Houser, Bailey.
  • Jonathan A. Rodgers: member of the Board of Directors.  He is the President and Chief Executive Officer of TV One, LLC.  He previously worked at Discovery Communications, Inc. (NASDAQ:DISCA) and CBS Inc. (NYSE:CBS)  He is also on the board of directors of Procter & Gamble Company (NYSE:PG).
  • John R. Thompson, Jr.: member of the Board of Directors.  He is the former coach of the Georgetown University men’s basketball team.

About the company: NIKE, Inc. designs, develops, and markets athletic footwear, apparel, equipment, and accessor products for men, women, and children.  The Company sells its products worldwide to retail stores, through its own stores, subsidiaries, and distributors. Nike’s main competitor lately is the fast growing Under Armour (NYSE:UA), an incredible high-returning Wall St. Cheat Sheet Premium Stock Selection.

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