Apr 4 2014, 10:46am CDT | by Forbes
The officers and directors of a company tend to have a unique inside view into the business, so when these insiders make purchases, investors are wise to take notice. Presumably the only reason for a company insider to choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. Within the 30 components of the Dow Jones Industrial Average, only nine companies have experienced such buying over the trailing six month period, one of which was Nike (NYSE: NKE), where an investment totaling $55.7K was made by Director John C. Lechleiter. Click Here to Learn Which Other Eight Dow Components Also Had Recent Insider Buying »
Lechleiter bets big on NKE:
|04/01/2014||John C. Lechleiter||Director||750||$74.33||$55,743.82|
Lechleiter’s average cost works out to $74.33/share. In trading on Friday, bargain hunters could buy shares of Nike (NYSE: NKE) and achieve a cost basis lower than Lechleiter, with shares changing hands as low as $74.02 per share. Shares of Nike were changing hands at $74.23 at last check, trading up about 0.3% on Friday. The chart below shows the one year performance of NKE shares, versus its 200 day moving average:
Looking at the chart above, NKE’s low point in its 52 week range is $58.33 per share, with $80.26 as the 52 week high point — that compares with a last trade of $74.23.
According to the ETF Finder at ETFChannel.com, NKE makes up 3.19% of the PowerShares Dynamic Large Cap Growth Portfolio ETF (AMEX: PWB) which is trading up by about 0.1% on the day Friday.
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