Nike Insiders Buying Its Shares, What To Expect From NKE Stock?

Nike Inc. is an American company manufacturing footwear and apparel. It was founded in 1964 and currently has more than 83K employees. Bill Bowerman and Phil Knight founded the company 59 years ago. Nike Inc. has its headquarters in Beaverton, United States.

Nike Inc. has an EPS of $3.28 trading with a volume of 8.53M and the market cap is $148.586B. The largest shareholder in the company is Vanguard Group Inc. with 8.80% of the shareholding. The largest percentage of shares float is held by the institutions resulting in 84.91%.

Nike Inc. paid 1.26% of its stock price as dividends in the year 2022, which is 41.03% of its earnings. The average dividend payout ratio for the industry is 44.24%. The company has increased its dividend by +11.48% on average in the last five years while the industry average is 33.25%.

Nike Inc. Stock Performance Analysis

Nike Inc. has a debt of $12.71 Billion however the company managed the debt very well and the debt was constant in previous years with no significant change. Nike Inc. has a growth in revenue of 1.9% in Q3 2023 and its net income has declined by -1.2%.

Performance Analysis of NKE Stock

On comparing with the expected revenue and EPS of the company over multiple quarters, Nike Inc. has outperformed every time and has performed very well in multiple quarters. The analysts are also bullish on the stock as per Tradingview experts’ recommendation tool. NKE share is expected to rise to a maximum level of $150.00. The average price of NKE stock is reported to be 24% above the current market levels.

NKE Stock Technical Analysis

NKE stock price on charts has been following a downtrend for a long time. But the share recently started to recover from the lower levels. If the NKE stock manages to break above the $100 level, resulting in a change in market character it can lead the share price to higher levels.

NKE share is trading below the 50-day and the 200-day EMA following a death cross. If the stock price breaks up above the 50-day EMA, it will follow a change in the character of the market. Therefore currently, the share price is trading in a downtrend, and on the break of the 50-day EMA, it can change its trend to bullish.

NKE share’s RSI is showing signs of strength. The RSI has bounced up from the lower levels leading to a level of 53.54. This indicates an upside push in the momentum of the price. It indicates the presence of buyers in the market.

Conclusion

Nike Inc. has reliable fundamentals and has performed very well in the past. It has shown reliable revenue and has a good profit margin. This makes the company financially strong. The NKE stock on charts is currently showing signs of change in trend. The RSI is indicating a bullish momentum while the EMAs are bearish on charts following the prior trend.

Therefore, if the share price of NKE stock breaks above the 50-day with a breakout above the $100 level in the stock, we might get to see a good advance in the stock price.

Technical Levels

Support levels- $86.00 and $105.00
Resistance levels- $137.00 and $141.50

Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.