We’re buying 200 shares of Nike at roughly $59. Following Wednesday’s trade, Jim Cramer’s Charitable Trust will own 1,600 shares of NKE, increasing its weighting to 2.4% from. 2.08%. We’re scooping up shares of struggling Nike on a confidence-inducing signal from the board of directors that a bottom could be forming. Late Tuesday evening , we learned that board member and Apple CEO Tim Cook bought nearly $3 million worth of Nike stock at an average price of $58.97 on Monday. That purchase was made alongside a purchase from fellow Nike director and former Intel CEO Bob Swan, who picked up about $500,000 worth of stock on Monday. While there are all sorts of reasons to sell, insider buys signal that people close to a company think the stock is undervalued. Back in August , an insider buy from Eli Lilly CEO David Ricks helped the Club stock put in a bottom and start to rally. Earlier this month , an insider buy at Linde helped to stabilize that Club name. These buys from Cook and Swan have the potential to do the same for Nike. Nike jumped more than 3% on Wednesday — paring a sharp decline since the sports footwear and apparel giant reported mixed earnings late Thursday. Shares lost 10.5% on Friday and another 2.5% on Monday. We believed this was an overreaction. The stock closed up slightly Tuesday. As for the reported quarter, it had some positives and negatives. The company beat analyst expectations on both revenue and earnings per share, driven by a strong recovery in its North American operations. Also, Inventories in the region, as well as in Europe, the Middle East, and Africa, are in a healthy and clean position, implying margin tailwinds in future quarters due to more full-price sales. However, fixing China has become a more complicated task than expected, requiring management to fully reset its approach to the region to break a cycle of markdowns and promotions. We’re not anticipating a turn in China over the next few quarters, but we have faith that CEO Elliott Hill and his team will get it right. Their top priority was becoming more sport-focused and fixing its US operations, and now that this part of the business is on a more durable path, they can give more attention to improving China. Turnarounds are never straightforward, but we agree with management in that this one is in its middle innings. A lot more work needs to be done, but Hill can utilize his North America playbook to be successful again in China. (Jim Cramer’s Charitable Trust is long NKE, AAPL, LLY, LIN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.