Nike Inc. (NYSE: NKE) shares fell yesterday on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Analysts at Wells Fargo & Co. reiterated a Hold rating on shares of Nike Inc. (NYSE: NKE) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Hold on the shares, Nike Inc. has a 52-week high of $68.19. A number of other analysts have spoken on the stock recently, and Nike Inc. has earned a consensus one-year price target of $63.77, above the opening price of $52.20. Stock prices sometimes get a boost to the upside when analysts reiterate coverage.
Meanwhile, U.S. stocks closed flat Thursday as trading stayed lukewarm in the wait for the nonfarm-payrolls report. U.S. employment growth likely picked up in September, putting pressure on the Federal Reserve to raise interest rates
For the week so far, the Dow industrials DJIA, -0.07% are down 0.2%, the S&P 500 SPX, +0.05% is off 0.4%, and the Nasdaq Composite COMP, -0.17% has lost 0.1%.
Shares of Nike Inc. (NYSE: NKE) opened at $52.20 yesterday trading between $51.97 and $52.33, and last traded at $52.03, which represents a decrease of $0.09 per share or -0.00 compared to the previous closing price.
Nike Inc. (NYSE: NKE) currently has a market cap of 86.99B.
Nike Inc.Trading Volume
The stock’s average daily volume is 9,017,720 shares out of a total float 1,339,957,000 and some 9,391,729 shares traded hands yesterday, higher than normal. Excessive volume aggregation by institutional investors may be in the near future as the combination of large gains in trading volume and price growth can be deciding components.
However, one day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that investigate thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
Nike Inc. Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By marking the activity of these professional investors—and the moving averages they influence— traders are able to make make well planned trades.
With that in mind, Nike Inc. (NYSE: NKE) now has a 50-day MA of $56.00 and 200-day MA of $56.91. It has traded in a 52-week range between $51.48 – 68.19 and today’s last price is 0.24% lower than the 52 week high of $68.19.
Earnings growth is a crucial factor to consider when buying stocks and investors watch for companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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