Nike, Inc. (NYSE: NKE) has experienced a decline in its stock price by -1.26 compared to its previous closing price of 95.74. However, the company has seen a gain of 2.75% in its stock price over the last five trading days. Reuters reported 2024-04-19 that Nike will lay off about 740 employees at its world headquarters in Oregon, a letter showed on Friday, as the top sportswear maker looks to rein in costs after warning of a revenue dip in the first half of fiscal 2025.
Is It Worth Investing in Nike, Inc. (NYSE: NKE) Right Now?
Nike, Inc. (NYSE: NKE) has a price-to-earnings ratio of 27.80x that is above its average ratio. Additionally, the 36-month beta value for NKE is 1.06. There are mixed opinions on the stock, with 12 analysts rating it as a “buy,” 7 rating it as “overweight,” 17 rating it as “hold,” and 1 rating it as “sell.”
The public float for NKE is 1.17B and currently, short sellers hold a 1.53% ratio of that float. The average trading volume of NKE on April 22, 2024 was 9.73M shares.
NKE’s Market Performance
The stock of Nike, Inc. (NKE) has seen a 2.75% increase in the past week, with a -5.72% drop in the past month, and a -7.12% fall in the past quarter. The volatility ratio for the week is 1.81%, and the volatility levels for the past 30 days are at 1.92% for NKE. The simple moving average for the last 20 days is 2.09% for NKE’s stock, with a simple moving average of -8.35% for the last 200 days.
Analysts’ Opinion of NKE
Many brokerage firms have already submitted their reports for NKE stocks, with BofA Securities repeating the rating for NKE by listing it as a “Buy.” The predicted price for NKE in the upcoming period, according to BofA Securities is $113 based on the research report published on April 11, 2024 of the current year 2024.
Telsey Advisory Group, on the other hand, stated in their research note that they expect to see NKE reach a price target of $115, previously predicting the price at $120. The rating they have provided for NKE stocks is “Outperform” according to the report published on March 22nd, 2024.
RBC Capital Mkts gave a rating of “Sector Perform” to NKE, setting the target price at $100 in the report published on March 22nd of the current year.
NKE Trading at -4.04% from the 50-Day Moving Average
After a stumble in the market that brought NKE to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -26.54% of loss for the given period.
Volatility was left at 1.92%, however, over the last 30 days, the volatility rate increased by 1.81%, as shares sank -6.24% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -8.92% lower at present.
During the last 5 trading sessions, NKE rose by +2.75%, which changed the moving average for the period of 200-days by -11.74% in comparison to the 20-day moving average, which settled at $92.28. In addition, Nike, Inc. saw -12.93% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at NKE starting from PARKER MARK G, who sale 168,378 shares at the price of $105.00 back on Feb 14 ’24. After this action, PARKER MARK G now owns 1,178,845 shares of Nike, Inc., valued at $17,679,690 using the latest closing price.
Matheson Monique S., the EVP: CHRO of Nike, Inc., sale 10,000 shares at $119.00 during a trade that took place back on Dec 11 ’23, which means that Matheson Monique S. is holding 44,736 shares at $1,190,000 based on the most recent closing price.
Stock Fundamentals for NKE
Current profitability levels for the company are sitting at:
- 0.11 for the present operating margin
- 0.44 for the gross margin
The net margin for Nike, Inc. stands at 0.1. The total capital return value is set at 0.2. Equity return is now at value 36.38, with 13.83 for asset returns.
Based on Nike, Inc. (NKE), the company’s capital structure generated 0.4 points at debt to capital in total, while cash flow to debt ratio is standing at 0.75. The debt to equity ratio resting at 0.66. The interest coverage ratio of the stock is -43.23.
Currently, EBITDA for the company is 5.92 billion with net debt to EBITDA at 0.52. When we switch over and look at the enterprise to sales, we see a ratio of 2.83. The receivables turnover for the company is 11.4for trailing twelve months and the total asset turnover is 1.38. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.74.
Conclusion
In conclusion, Nike, Inc. (NKE) has seen bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
