Why should you buy stock in NIKE Inc. (NKE)?

NIKE Inc. (NYSE: NKE) is 9.41% higher on its value in year-to-date trading and has touched a low of $60.00 and a high of $112.28 in the current 52-week trading range. The NKE stock was last observed hovering at around $111.53 in the last trading session, with the day’s loss setting it -0.69% off its average median price target of $115.00 for the next 12 months. It is also 26.11% off the consensus price target high of $150.00 offered by 31 analysts, but current levels are -27.4% lower than the price target low of $87.00 for the same period.

Currently trading at $110.84, the stock is 5.78% and 10.14% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 4.39 million and changing -0.62% at the moment leaves the stock 16.74% off its SMA200. NKE registered 32.77% gain for a year compared to 6-month gain of 24.01%. The firm has a 50-day simple moving average (SMA 50) of $0.65% and a 200-day simple moving average (SMA200) of $10.68M.

The stock witnessed a 14.30% loss in the last 1 month and extending the period to 3 months gives it a 12.44%, and is 2.62% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 1.53% over the week and 1.87% over the month.

NIKE Inc. (NKE) has around 75400 employees, a market worth around $170.16B and $37.40B in sales. Current P/E ratio is 70.20 and Fwd P/E is 33.47. Profit margin for the company is 6.80%. Distance from 52-week low is 84.73% and -1.28% from its 52-week high. The company has generated returns on investments over the last 12 months (13.30%).

NIKE Inc. (NKE) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for NIKE Inc. (NKE) is a “Buy”. 31 analysts offering their recommendations for the stock have an average rating of 2.00, where 5 rate it as a Hold and 3 think it is a “Overweight”. 23 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

NIKE Inc. is expected to release its quarterly report on 09/29/2020 and quarterly earnings per share for the current quarter are estimated at $0.41 with sales reaching $8.94B over the same period. The EPS is expected to shrink by -35.90% this year, but quarterly earnings will post 4.80% year-over-year. Quarterly sales are estimated to shrink -16.10% in year-over-year returns.

NIKE Inc. (NKE) Top Institutional Holders

2,440 institutions hold shares in NIKE Inc. (NKE), with 18.3M shares held by insiders accounting for 1.17% while institutional investors hold 86.84% of the company’s shares. The shares outstanding are 1.56B, and float is at 1.24B with Short Float at 0.82%. Institutions hold 85.83% of the Float.

The top institutional shareholder in the company is Vanguard Group, Inc. (The) with over 105.17 million shares valued at $10.31 billion. The investor’s holdings represent 8.45% of the NKE Shares outstanding. As of Jun 29, 2020, the second largest holder is Blackrock Inc. with 95.69 million shares valued at $9.38 billion to account for 7.69% of the shares outstanding. The other top investors are State Street Corporation which holds 59.19 million shares representing 4.75% and valued at over $5.8 billion, while FMR, LLC holds 2.36% of the shares totaling 29.42 million with a market value of $2.88 billion.

NIKE Inc. (NKE) Insider Activity

A total of 58 insider transactions have happened at NIKE Inc. (NKE) in the last six months, with sales accounting for 30 and purchases happening 28 times. The most recent transaction is an insider sale by O’NEILL HEIDI, the company’s PRES: CONSUMER AND MKTPLC. SEC filings show that O’NEILL HEIDI sold 22,000 shares of the company’s common stock on Aug 24 at a price of $110.00 per share for a total of $2.42 million. Following the sale, the insider now owns 0.13 million shares.

NIKE Inc. disclosed in a document filed with the SEC on Aug 24 that Matheson Monique S. (EVP: HR) sold a total of 8,500 shares of the company’s common stock. The trade occurred on Aug 24 and was made at $111.00 per share for $0.94 million. Following the transaction, the insider now directly holds 0.14 million shares of the NKE stock.

Still, SEC filings show that on Aug 19, Matheson Monique S. (EVP: HR) disposed off 8,500 shares at an average price of $108.00 for $0.92 million. The insider now directly holds 144,126 shares of NIKE Inc. (NKE).

NIKE Inc. (NKE): Who are the competitors?

The company’s main competitors (and peers) include Crocs Inc. (CROX) that is trading 79.17% up over the past 12 months.