The stock of Nike, Inc. (NYSE: NKE) has increased by 1.17 when compared to last closing price of 71.41. Despite this, the company has experienced a -0.63% fall in its stock price over the last five trading sessions. fool.com reported 2024-07-26 that Nike’s sales have essentially plateaued, but management says the company’s undergoing a comeback. Rising competition and a challenging macro picture don’t bode well for Nike’s prospects.
Is It Worth Investing in Nike, Inc. (NYSE: NKE) Right Now?
The price-to-earnings ratio for Nike, Inc. (NYSE: NKE) is above average at 19.38x, Company’s 36-month beta value is 1.01.Analysts have differing opinions on the stock, with 12 analysts rating it as a “buy,” 7 as “overweight,” 17 as “hold,” and 1 as “sell.”
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The public float for NKE is 1.17B, and currently, short sellers hold a 2.03% ratio of that floaft. The average trading volume of NKE on July 26, 2024 was 14.09M shares.
NKE’s Market Performance
The stock of Nike, Inc. (NKE) has seen a -0.63% decrease in the past week, with a -23.19% drop in the past month, and a -23.09% fall in the past quarter. The volatility ratio for the week is 2.46%, and the volatility levels for the past 30 days are at 2.30% for NKE. The simple moving average for the last 20 days is -3.09% for NKE stock, with a simple moving average of -26.55% for the last 200 days.
Analysts’ Opinion of NKE
Many brokerage firms have already submitted their reports for NKE stocks, with RBC Capital Mkts repeating the rating for NKE by listing it as a “Sector Perform.” The predicted price for NKE in the upcoming period, according to RBC Capital Mkts is $75 based on the research report published on July 02, 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 $100, previously predicting the price at $115. The rating they have provided for NKE stocks is “Outperform” according to the report published on June 28th, 2024.
UBS gave a rating of “Neutral” to NKE, setting the target price at $78 in the report published on June 28th of the current year.
NKE Trading at -16.17% 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 -41.45% of loss for the given period.
Volatility was left at 2.30%, however, over the last 30 days, the volatility rate increased by 2.46%, as shares sank -23.35% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -22.19% lower at present.
During the last 5 trading sessions, NKE fell by -0.74%, which changed the moving average for the period of 200-days by -25.47% in comparison to the 20-day moving average, which settled at $73.45. In addition, Nike, Inc. saw -33.46% 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 110,000 shares at the price of $72.97 back on Jul 18 ’24. After this action, PARKER MARK G now owns 1,102,090 shares of Nike, Inc., valued at $8,026,700 using the latest closing price.
SWAN ROBERT HOLMES, the Director of Nike, Inc., purchase 2,941 shares at $77.02 during a trade that took place back on Jun 28 ’24, which means that SWAN ROBERT HOLMES is holding 20,946 shares at $226,516 based on the most recent closing price.
Stock Fundamentals for NKE
Current profitability levels for the company are sitting at:
- 0.12 for the present operating margin
- 0.45 for the gross margin
The net margin for Nike, Inc. stands at 0.11. The total capital return value is set at 0.23. Equity return is now at value 40.09, with 15.07 for asset returns.
Based on Nike, Inc. (NKE), the company’s capital structure generated 0.39 points at debt to capital in total, while cash flow to debt ratio is standing at 0.51. The debt to equity ratio resting at 0.65. The interest coverage ratio of the stock is -58.8.
Currently, EBITDA for the company is 7.54 billion with net debt to EBITDA at 0.29. When we switch over and look at the enterprise to sales, we see a ratio of 2.16. The receivables turnover for the company is 11.6for trailing twelve months and the total asset turnover is 1.35. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.40.
Conclusion
In a nutshell, Nike, Inc. (NKE) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. 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.
