NIKE Inc. (NKE): What is the Risk Factor?

NIKE Inc. (NYSE:NKE) saw an upside of 1.26% to close Friday at $147.06 after adding $1.83 on the day. The 5-day average trading volume is 9,642,860 shares of the company’s common stock. It has gained $149.91 in the past week and touched a new high 1 time within the past 5 days. An average of 8,500,700 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 5,983,154.

NKE’s 1-month performance is -10.63% or -$17.50 on its low of $144.37 reached on 10/01/21. The company’s shares have touched a 52-week low of $118.80 and high of $174.38, with the stock’s rally to the 52-week high happening on 08/06/21. YTD, NKE has achieved 3.95% or $5.59 and has reached a new high 24 times. However, the current price is down -15.67%% from the 52-week high price.


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Insider Transactions

On Aug 05, 60 days have gone by since the last insider trading activity for NIKE Inc. (NKE). Campion Andrew (CHIEF OPERATING OFFICER) most recently sold 7,125 shares at $171.50 per share on Aug 05. This transaction cost the insider $1,221,938. EVP: CFO, Friend Matthew, sold 3,546 shares at a price of $171.50 on Aug 05. Then, on Aug 03, EVP: CFO Friend Matthew sold 43,000 shares at a price of $170.00 per share. This transaction amounted to $7,310,000.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 84.03 and a low of 20.38. NKE stock has a beta of 0.90. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 4.98 while the price-to-book (PB) in the most recent quarter is 18.20, with the price to cash flow ratio at 102.18.

NIKE Inc. pays an annual dividend of $1.10 per share. Its dividend yield is 0.75% and the payout ratio is 46.40%. NKE’s most recent quarterly dividend payment was made on Oct. 1, when it paid $0.2750 a share compared with prior rate of $0.2750, down 0.0% from last year’s. The company has boosted its dividend for the last 5 consecutive years with the latest dividend increase of $0.03 reported on Friday November 20 2020. Measured over the last 3 years, the Dividend has been growing by 36.49% yearly.

It is projected that NIKE Inc.’s next ex-dividend date will be on 3-Dec. NKE is expected to distribute $0.275 as its next dividend.

NIKE Inc.’s quick ratio for the period ended August 30 was 2.00, with the current ratio over the same period at 2.70 meaning that NKE stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending August 30 was 0.74, while the total debt to equity was 0.74. In terms of profitability, the gross margin trailing 12 months is 45.40%The trailing 12-month EBITDA margin is 17.70% while for the period ending August 30; NIKE Inc.’s operating margin was 8.90%. The firm’s gross profit as reported stood at $19.96 billion against revenue of $44.54 billion.

Earnings Surprise

For the quarterly period ending August 30 this year, NIKE Inc.’s cash and short-term investments amounted to $3.59 billion against total debt of $12.79 billion. Net income and sales went down compared to those figures reported in the previous quarter. Analysts expected NKE to announce $1.11 per share in earnings in its latest quarter, but it posted $1.16, representing a 4.50% surprise. NKE stock balance sheet for the quarter ending August 30 shows that total liabilities totaled 23.57 billion, with total debt at $12.79 billion

Technical Picture

Let’s look briefly at NIKE Inc. (NKE) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 01 October was 30.81% to suggest the stock is trending Neutral, with historical volatility in this time period at 37.32%.

The stock’s 5-day moving average is $146.33, reflecting a -1.69% or -$2.53 change from its current price. NKE is currently trading -10.15% above its 20-day SMA, +7.25% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -10.15% and +5.50% respectively.

Stochastic %K and %D was 8.50% and 5.17% and the average true range (ATR) pointed at 3.59. The RSI (14) points at 31.52%, while the 14-day stochastic is at 16.18% with the period’s ATR at 3.42. The stock’s 9-day MACD Oscillator is pointing at -4.26 and -6.63 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for NIKE Inc. (NYSE: NKE), Barclays reiterated its an Overweight rating for the company but lifted their price target by $194 to $185. Analysts offering their rating for NKE stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate NKE as a “sell,”, while 5 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 2 rates the stock as overweight while 21 have offered a “buy” rating.

What is NKE’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $154.00 and a high of $214.00, with their median price target at $183.00. Looking at these predictions, the average price target given by analysts is for NIKE Inc. (NKE) stock is $184.23.

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