Shares of Nike, Inc. ( NKE ) are trading higher Wednesday after SEC filings revealed that Apple Inc ( AAPL ) CEO Tim Cook and Nike ( NKE ) CEO Elliott Hill purchased Nike ( NKE ) stock.

Nike ( NKE ) stock is moving in positive territory. Why is NKE stock advancing?

Insider Buying Continues At Nike ( NKE )

Hill disclosed Tuesday that he purchased 23,660 shares of Nike ( NKE ) stock at an average price of $42.27 per share. The open-market purchase, executed Monday, increased Hill's total ownership stake to approximately 265,247 shares.

Cook, who is also a Nike ( NKE ) board director, disclosed Tuesday that he added to his position late last week. According to the filing, Cook bought 25,000 shares at an average price of $42.43, lifting his total Nike ( NKE ) holdings to 130,480 shares.

Insider buying is often viewed as a bullish signal, as it can indicate that executives and directors believe the stock is undervalued at current levels. It also may reflect management's confidence in the company's outlook and expectations for stronger business performance ahead.

NKE Stock Trades Below Key Averages

Nike ( NKE ) is sitting near the lower end of its 52-week range, closer to the $42.09 low than the $80.17 high, which is consistent with a longer stretch of seller control. The stock is trading 6.7% below its 20-day simple moving average (SMA) and 24.3% below its 100-day SMA, a setup that points to a weak short-term trend and a still-damaged intermediate trend.

The relative strength index (RSI), a momentum gauge, is 30.99, which is near the oversold threshold and hints that downside momentum may be getting stretched. RSI at 30.99 shows sellers have had the upper hand, but pressure may be less one-sided than it was into April.

NKE Shares Rise Wednesday

NKE Stock Price Activity: Nike ( NKE ) shares were up 3.62% at $45.81 at the time of publication on Wednesday, according to Benzinga Pro data.

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