Nike, Inc. (NKE) is a global designer, marketer, and retailer of athletic footwear, sneakers, apparel, equipment, services, and accessories. Most of Nike’s products are manufactured by independent contractors. The company sells its products direct-to-consumer through both its retail outlets and its digital platforms, as well as through independent distributors and retailers.
The top shareholders of Nike are Phil Knight, Mark Parker, Andrew Campion, Swoosh LLC, Vanguard Group Inc., and BlackRock Inc. (BLK).
Nike’s 12-month trailing revenue and net income are $37.4 billion and $2.5 billion, respectively. The company has a market capitalization of $151.5 billion. All figures are as of July 15.
Below, we take a closer look at the top six shareholders of Nike. Note that Nike has two classes of stock. Class A, which are not available on the open market and are convertible into class B shares on a 1-for-1 basis; and Class B, the normal Nike shares available to all investors. The primary difference is that holders of Class A shares elect 9 of the 12 members of Nike’s board, while holders of Class B shares elect the other 3. The co-founder of Nike, Phil Knight, and his son Travis Knight, along with the holding companies and trusts they control, own more than 97% of outstanding Class A shares. This allows the Knight family to exercise effective control of Nike even though it is a publicly traded business.
“Insider” refers to people in senior management positions and members of the board of directors, as well as people or entities that own more than 10% of the company’s stock. In this context, it has nothing to do with insider trading.
Top 3 Individual Insider Shareholders
Billionaire Philip Knight directly owns 29,154,487 shares of Class A and 11,385,687 shares of Class B Nike stock, representing 9.3% of outstanding Class A shares and 0.9% of outstanding Class B shares as of April 2, 2020; Knight owns 2.6% of all outstanding shares as of that date. In 1964, Knight co-founded Blue Ribbon Sports, later to be renamed Nike, with his former track coach, Bill Bowerman. Over the next six decades, Nike would become one of the world’s biggest and most powerful brands in sports shoes and apparel, making Knight one of the worlds’ wealthiest persons. Knight ran the company as president from 1968 to 1990, save for a brief interlude, and again from 2000 to 2004. Knight has served on the board of directors since the 1960s and retired as the Chairman after in June 2016. He was appointed Chairman Emeritus, a non-voting board member. He and his family are ranked 25th on the Forbes list of billionaires, with a net worth of $39.3 billion.
Mark Parker holds 1,450,813 shares of Nike stock, representing roughly 0.09% of outstanding shares. Mark Parker serves as Executive Chairman of Nike, having previously been the President, CEO, and Chairman for 14 years. Parker stepped down as CEO in 2019. Parker’s career at Nike began in 1979 as a footwear designer, and he has also held executive leadership positions at the company in business lines such as Consumer Product Marketing, Global Footwear, and Nike Brand.
Andrew Campion owns 233,156 shares of Nike stock, representing about 0.01% of outstanding shares. Campion has been Nike’s Chief Operating Officer since April 1, 2020. In this role, he has guided the company through a key period of digital transformation and global technology growth. Campion joined Nike in 2007 and was Chief Financial Officer and Executive Vice President from 2015 to 2020.
Top 3 Institutional Shareholders
Institutional investors hold the majority of Nike’s shares at about 64.5% of total shares outstanding.
Swoosh, LLC owns 257 million shares of Nike stock, or 16.5% of the company’s outstanding shares, according to its 13D filing for June 30, 2016. Swoosh is the limited liability company created by Phil Knight in to hold the bulk of Knight’s shares in Nike. In 2016, upon his retirement from his position as Chairman of Nike’s board, Knight transferred his voting interests in Swoosh to a trust owned by his son, Travis Knight, who is also one of Nike’s directors.
Vanguard Group, Inc.
Vanguard Group owns 109.2 million shares of Nike, representing 7.0% of total shares outstanding, according to the company’s 13F filing for the period ending March 31, 2020. The company is primarily a mutual fund and ETF management company with about $6.2 trillion in global assets under management (AUM). The Vanguard Dividend Appreciation ETF (VIG) tracks an index of U.S. companies with steadily increasing dividends over 10 or more consecutive years and has $43.0 billion in AUM. Nike stock represents around 1.6% of the fund’s holdings.
BlackRock owns 91.0 million shares of Nike, representing 5.9% of total shares outstanding, according to the company’s 13F filing as of March 31, 2020. The company is primarily a mutual fund and ETF management company with approximately $6.5 trillion in AUM. The iShares Core S&P 500 ETF (IVV) is among one of BlackRock’s largest ETFs with approximately $197.7 billion in AUM. Nike comprises 0.5% of IVV’s holdings.