Nike’s stock saw a notable increase following substantial purchases by company insiders, highlighting renewed confidence in the brand amid challenging market conditions. Elliott Hill, Nike’s CEO, acquired 16,400 shares for approximately $1 million. This purchase came shortly after Tim Cook, CEO of Apple and a member of Nike’s board since 2005, invested $3 million in the company’s stock, acquiring 50,000 shares at an average price of $58.97.
The recent insider trading activity reflects a strong belief in Nike’s potential recovery, particularly after the company faced challenges with sales in China, declining gross margins, and a cautious outlook. In addition, Robert Swan, another director at Nike, purchased approximately $500,000 of stock on December 22, 2023, at an average price of $57.54.
Market Reaction to Insider Activity
The market has responded positively to these developments, with Nike’s shares rebounding from a low of around $57 to last trade at $62. Analysts note that the stock is beginning to show signs of upward momentum, supported by indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). Expectations are building that Nike could refill a bearish gap at approximately $66.20 per share in the coming days.
Other Significant Market Movements
In related news, shares of Axsome Therapeutics (NASDAQ: AXSM) rose by 18%, or $28.17 per share, after the U.S. Food and Drug Administration (FDA) granted priority review of the company’s marketing application for its depression therapy, AXS-05, aimed at treating agitation associated with Alzheimer’s disease. The FDA has set a target action date of April 30, 2026. Dr. Herriot Tabuteau, CEO of Axsome, emphasized the urgency of addressing this unmet medical need, stating, “Up to 76% of people with Alzheimer’s disease experience agitation, representing a significant demand for effective treatments.”
Additionally, shares of Taiwan Semiconductor Manufacturing Company (NYSE: TSM) increased by approximately $5.35 per share as reports emerged that Nvidia has requested assistance in ramping up production of its H200 artificial intelligence chips. According to Reuters, Chinese technology companies have placed orders for over 2 million H200 chips for 2026, while Nvidia currently holds just 700,000 units in stock. The exact volume of additional orders from TSMC remains uncertain, but production is expected to commence in the second quarter of 2026.
As market dynamics continue to evolve, the actions of industry leaders like those at Nike and Axsome Therapeutics signal a focus on recovery and growth, while the tech sector remains buoyed by demand for advanced chip technology.
