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Insider Move: VIG JORGEN KNUDSTORP Invests $1.00M In Nike Stock

It was revealed in a recent SEC filing that VIG JORGEN KNUDSTORP, Board Member at Nike (NYSE:NKE) made a noteworthy insider purchase on November 10,.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday, KNUDSTORP increased their investment in Nike by purchasing 16,150 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $1,002,753.

Tracking the Tuesday's morning session, Nike shares are trading at $62.33, showing a up of 2.52%.

Discovering Nike: A Closer Look

Nike is the largest athletic footwear and apparel brand in the world. Footwear generates about two-thirds of its sales. Key performance footwear categories include basketball, running, and football (soccer). Its brands include Nike, Jordan (premium athletic footwear and clothing), NikeSkims (women's athleisure), and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores (including about 5,500 in China), and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.

Unraveling the Financial Story of Nike

Positive Revenue Trend: Examining Nike's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.13% as of 31 August, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Insights into Profitability Metrics:

  • Gross Margin: The company faces challenges with a low gross margin of 42.18%, suggesting potential difficulties in cost control and profitability compared to its peers.

  • Earnings per Share (EPS): Nike's EPS is below the industry average. The company faced challenges with a current EPS of 0.49. This suggests a potential decline in earnings.

Debt Management: With a high debt-to-equity ratio of 0.82, Nike faces challenges in effectively managing its debt levels, indicating potential financial strain.

Financial Valuation:

  • Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 31.18 suggests caution, as the stock may be overvalued in the eyes of investors.

  • Price to Sales (P/S) Ratio: The current P/S ratio of 1.94 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 21.77 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Uncovering the Importance of Insider Activity

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Nike's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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