On April 19, U.S. Rep. Thomas Kean Jr., R-N.J., bought shares of Illumina (NASDAQ: ILMN) and sold shares of Nike(NYSE: NKE), according to a May 31 filing. Although it's unclear exactly how many shares were involved in the trades, the amount reported for each transaction was between $1,001 and $15,000. From April 19 through the close of trading yesterday, Illumina stock had fallen 9.1%, and Nike stock was essentially flat, down less than 0.01%. Kean sits on several House committees: Foreign Affairs, Transportation and Infrastructure, and Science, Space, and Technology.
While any individual can sell any stock for any reason, investors may wonder if they should look to buy Illumina shares, while Nike investors may wonder if they should continue holding their shares.
What we know about Kean's trades
We don't know why Kean made these trades, but regarding Illumina stock, insider buying may have motivated him. In February, Illumina CEO Jacob Thaysen reported several purchases of company stock, a bullish sign. Subsequent to Kean's buy, Illumina, a leader in genetic sequencing, reported a strong start to 2024 when it presented Q1 2024 financial results.
Investors have no insight as to why Kean sold his Nike stock, but it had struggled through the first few months of 2024. The S&P 500 had risen 5% from the start of the year through April 18 (the day before Kean sold his shares), while Nike stock had fallen 12% as investors feared falling sales in the coming quarters.
Should you be keen on following Kean's moves?
Illumina is certainly worth further scrutiny from investors, as the company is at the forefront of a rapidly growing industry. According to Grand View Research, the global next generation sequencing market size (about $8.4 billion in 2023) is expected to grow at a compound annual growth rate of 21.7% from 2024 to 2030.
Nike could be a great choice for those looking for a powerful consumer discretionary stock -- especially now. Shares are trading at 21.9 times operating cash flow, a discount to their five-year average cash flow multiple of 30.2.
Should you invest $1,000 in Nike right now?
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends Illumina and recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy.
