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Twelve analysts have raised their NKE price targets

Nike just made it. And by that we mean blasting the doors of his latest quarterly report. Nike, Inc. (NYSE: NKE) is up 14% to trade at $ 152.24 on the latest review after the blue-chip retailer reported adjusted earnings of 93 cents per share for the fourth quarter, surpassing an estimated 52 cents per share . Sales not only met expectations, but exceeded Wall Street estimates with a sales outlook of $ 50 billion. It seems like socialization is starting to drift towards pre-pandemic levels, and shoe sales – especially fashion-conscious brands like Jordan – are benefiting.

Analysts have rushed to change their stance. As of the last review, 12 analysts posted price target increases, the highest from Stifel to $ 214 from $ 168. Barclays stated that “the worst is now behind NKE”. With the European Championship in full swing and the Tokyo Olympics approaching, Nike is in pole position to capitalize on the notoriety with its latest gear on display throughout the summer. To underscore the impact of this report, retail stocks Foot Locker (FL) as well as industry peers Adidas and Puma are all higher today and enjoying the Halo lift.

Before today’s eruption Nike share had been staring at its 100-day moving average since mid-March after a post-profit bear gap. Today’s increases have resulted in NKE regaining its break-even level since the start of the year, increasing its profit by 49% year over year.

NKE share chart

There isn’t much contrary pessimism that can be reversed; Most analysts are already optimistic about NKE and just under 2.1% of the total available float in the share will be sold short. However, now may be the right time to weigh the stock’s next move with options. This corresponds to the Schaeffer’s Volatility Index (SVI) of the share of 24%, which is in the extremely low 4th percentile of the values ​​of the previous year. In simpler terms, option players are now pricing in low volatility expectations.

The option pits react as you imagine. In the first two hours of trading alone, 315,000 contracts changed hands, a volume that is 15 times the average intraday amount. The July 150 call is attracting notable attention, suggesting that some option bulls are betting this NKE breakout to continue into the heat of summer.


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