Guggenheim maintained its NIKE Inc. [NYSE:NKE] rating to the equivalent of Buy with a price target $165, in a research note dated December 30, 2020. That figure represents around a 16.55% premium from where the company’s shares closed on Tuesday. Other analysts also revised their coverage, with Telsey Advisory Group’s analysts reiterating the shares to ”an Outperform” rating in a research note to investors issued in late December. Meanwhile, KeyBanc Capital Markets had launched its coverage on NKE with “an Overweight”, in a research note produced for clients December 11, 2020. In addition, there was a new coverage from RBC Capital Mkts on November 12, 2020. The research firm rated NKE “an Outperform”.
Is NIKE Inc. [NYSE:NKE] a Good Buy Right Now?
It should be noted that NKE technical indicators for short, intermediate as well as long term progress have placed an overall average of 100% as Buy. The average signal changed from 100% Buy in the last week and compares with 100% Buy in the past month. Data from NIKE Inc.’s Trend Spotter indicated that the signals were Weakest. The stock current average is 6.27 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 5.7 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 6.33 million shares.
NKE Price Performance
On Wall Street, NIKE Inc. [NYSE:NKE] finished Tuesday’s session down -0.60% at $141.57. The stock went up to $143.06 at the same session while its lowest single day price was $140.43. In the last five days, it saw a fall of about -1.70%, NIKE Inc. shares gained by almost 39.74% since the beginning of the year. However, the share price has dropped to as low as -4.31% below its one year high. On 12/21/20, the company shares recorded $147.95, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 03/18/20, the same year at $60.00. The company’s shares have inclined by 40.45% in the past year. The 50-day SMA achieved is $133.07 while the 200-day SMA is $108.54. Volume dropped to 3.23 million from 4.08 million in the previous session.
NIKE Inc. [NKE] Valuation Measures
Notably, NIKE Inc. [NKE] stock cannot be classified as a good candidate in the listing of underestimated low-priced Footwear & Accessories companies to purchase soonest possible with the prevailing 12-month PE ratio of 80.71. The measure means the stock is exchanging at a premium as compared to the 18.67x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 5.82 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 0.73 which means NKE serve an unattractive investment opportunity compared to its competitors.
NKE Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 140.31 level, and in case of violation of this particular level, it will cause more drop to 139.06 level. On the upper level, 144.32 is still the key resistance. The stock may increase to the subsequent resistance at 142.94. The Relative Strength Index (RSI) pinned on the 14-day chart is 60.41, implying a neutral technical stance while the MACD stands at 1.91, meaning price will increase in the next trading period. Percent R indicator moved to 54.30%, implying low price movement. Stochastic %K at 48.23% suggest selling the stock.
What is the short interest in NIKE Inc.?
Short interest in the NIKE Inc. stock has surged, increasing by 0.36 million shares to total 13.76 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 14.12 million, data from Yahoo Finance shows. The decrease of -2.62% suggests the stock saw some decreased bullish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 1.44% of the overall float for the stock.
NIKE Inc.’s Biggest Shareholders: Who Owns NIKE Inc. [NKE]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 98,565,170 shares or roughly 7.86% of the outstanding NKE shares. This means their shares have reduced by -589,362 from the 98,565,170 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, BlackRock Fund Advisors updated stake is worth $8,477,475,159. Details in the latest 13F filings reveal that SSgA Funds Management, Inc. disposed off their -0.63% stake valued at $7,922,209,027 while Fidelity Management & Research Co added theirs at $3,823,012,431. During the last quarter, SSgA Funds Management, Inc. liquidated -375,509 of its shares in NIKE Inc. while Fidelity Management & Research Co bought 1,275,388 shares. The T. Rowe Price Associates, Inc.’s holdings currently number 24,831,927 shares at $3515455905.39. According to the firm’s last 13F report, Wellington Management Co. LLP shares in the company at filing stood at 21,250,309 shares, roughly $2,862,416,622.
NKE Earnings Forecast For The Current Quarter
NIKE Inc. [NKE] is expected to report strong earnings results for the quarter ending on Feb 2021. Consensus estimates give the company expected revenues of $11.03B and an earnings per share of $0.75 for Feb 2021. Looking further ahead, the company is expected to report revenue of $10.26B at an EPS of $0.52 for May 2021. The estimates represent upside of 11.00% and 28.11% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
NKE Earnings Estimates For The Current Year
For the financial year, NIKE Inc. [NYSE:NKE] is expected to bring in revenue of $43.21B. The returns are nearly $5.81 billion higher than the company’s actual revenue recorded in the fiscal year 2020. In terms of EPS for the 2021, estimate put it at 3.01, higher than that of FY20 by $1.41. Estimates put this year’s earnings growth at 88.10%, 28.20% for the next, and at an annual 34.30% over the next 5-year period. As for sales, forecasts are for an increase of 15.50% in the current fiscal year and a further 11.00% over the following year.