NIKE, Inc. (NYSE:NKE) receieved a positive analyst call from Pivotal Research Group, which upgraded the stock from Hold to Buy on December 21. Analysts at JP Morgan, shed their negative views on December 21 by lifting it fromNeutral to Overweight. The stock won favor of Oppenheimer analysts who expressed their confidence in it using an upgrade from Perform to Outperform on October 18.
NIKE, Inc. (NKE) grew as high as $76.365 on Monday before closing at $75.72. The 1.43 percent rally pushed its market cap to $119.3B. The shares went down as low as $74.3 before recovering. Trading activity significantly weakened as the volume at ready counter decreased to 8,064,849 shares versus 9,123,165 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 7,699,700 shares. The stock is now 21.95% above against its bear-market low of $62.09 on February 06, 2018. It has retreated -13.63% since it’s 52-week high of $86.04 reached in September. Now the market price is up 19.36% on the year and up 2.13% YTD.
NKE’s 50 day simple moving average (SMA 50) price is $73.75 and its 200-day simple moving average (SMA 200) price is $74.86. The company’s stock currently has a total float of 1.26B shares. Its weekly volatility is hovering around 2.63% and felt 3.54% volatility in price over a month. On the upside, the share price will test short term resistance at around $76.62. On a downside, the stock is likely to find some support, which begins at $74.56. The failure to get near-term support could push it to $73.4.
Separately, it has been reported that multiple insider activity took place at NIKE, Inc. (NKE). EVP: GBL SPORTS MKTG Slusher John F sold 200,000 shares for $187,552 in transaction occurred on 2019/01/02. After making this transaction, the EVP: GBL SPORTS MKTG owns a direct stake of 14,810,000 shares, worth $14,201,437, as per the last closing price. On 2019/01/02 Parker Mark G, CHAIRMAN, PRESIDENT & CEO at NKE, dumped 150,000 shares at an average price of $73.68 per share. The selling total is valued at $119,000,000.
Director, Rodgers Johnathan A had divested 16,000 shares for $12,763 through a trade on 2018/09/19. Following this activity, the insider holds 1,360,800 shares worth $966,414 as of recent close. Wall Street’s most bullish NIKE, Inc. (NYSE:NKE) analysts are predicting the share price to blow past $103 per share during the next 12 months. The current median share price forecast by them is $87.64, suggesting that the stock could increase 15.74% in that time frame. The average price target of $86.88 calls for a nearly 14.74% increase in the stock price.
When looking at valuations, NIKE, Inc. (NKE) has a pricey P/E of 29.46x as compared to industry average of 22.81x. Moreover, it trades for 24.13 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 13.43x price/book and 3.13x price/sales. Compared to others, NIKE, Inc. is in a different league with regards to profitability, having net margins of 5.1%. To put some perspective around this, the industry’s average net margin is 7.62%. NKE’s ROE is 19.2%, which is also considerably better than the industry’s ROE of 18.25%. It’s also very liquid in the near term, with a current ratio of 2.3. The stock has a debt/capital of 0.39.
Shares of NIKE, Inc. (NKE) have gained 10.5% since the company’s Aug-19 earnings report. Over the past 12 fiscal quarters, NIKE, Inc. (NYSE:NKE) has topped consensus earnings estimates in 12 quarters (100%), missed earnings in 0 quarters (0%), whereas at 0 occasion EPS met analyst expectations. NKE last reported earnings on December 20, 2018 when it released Aug-18 results that exceeded expectations. The company raked in $0.67 per share, -90.41% change on the same period last year. That was better than consensus for $0.63. Revenue for the recent quarter stood at $9.95 billion, up 10% on last year and above the $9.94 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $10.39 billion to $10.77 billion, which should be compared with $10.57 billion generated last year. EPS is seen in a range of $0.75 to $0.89, against the $0.7 reported a year ago.