Nike: Down 75%, insiders are buying

u/k_ristovski · Reddit — r/ValueInvesting · August 11, 2026 at 18:48 · ⬆ 79 pts · 💬 59 comments  | View on Reddit ↗
AI Summary

Summary

  • Author argues Nike’s 75% decline stems from prior overvaluation and a self-inflicted over‑shift to DTC/online, which hurt operating margins.
  • New/returning CEO Elliott Hill is working to reverse course, and insider buying is cited as a confidence signal.
  • The market is skeptical that Nike can return to modest growth with 10%+ operating margins — that gap is the potential opportunity.
  • Quality assessment: Well-structured value/Due-Diligence-style write-up, but it is more turnaround narrative than rigorous valuation model; actionable but speculative.
Score 79
Comments 59
Upvote % 87%
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Ideas
u/k_ristovski Reddit r/ValueInvesting
Nike is down ~75%, insiders are buying, and a proven insider CEO is attempting to repair the brand and margins. If management can stabilize revenue and restore a 10%+ operating margin, the current pessimistic base creates room for a multi-year re-rating. A cautious long/watch idea driven by insider signals and a potential operational turnaround, not by current financial strength. Continued share loss to Hoka/On, brand moat erosion, and a market that still sees NKE as expensive (~25 fwd P/E) with weak FCF yield.
NKE MED
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This Reddit post, published August 11, 2026, features u/k_ristovski discussing NKE. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/k_ristovski  · Tickers: NKE