Nike Inc. (NKE) Shares Active after Upgrade at HSBC

Nike Inc. (NYSE: NKE) shares rose in value Monday Dec 5 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.

The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.

Analysts at HSBC upgraded shares of Nike Inc. (NYSE: NKE) from Hold to Buy today. With a rating of Buy on the shares, Nike Inc. has a 52-week high of $68.19. A number of other analysts have issued reports on the company recently, and the company has secured a consensus one-year price target of $63.05, above the opening price of $50.80. Typically, after analysts publish an upgrade report on a stock, they will subsequently issue other updates, such as a price target change.

Shares of Nike Inc. (NYSE: NKE) opened at $50.80 on Tuesday and has traded in a range between, $50.70 and $51.88, and last traded at $51.81, which represents a spike of $1.35 or 2.68% compared to the previous closing price.

Nike Inc. (NYSE: NKE) now has a market cap of 86.29B.

Nike Inc. (NYSE: NKE) Average Daily Trading Volume

The stock’s average daily volume is 9,311,790 shares out of a total float 1,332,230,000 and some 1,563,282 shares crossed the trading desk yesterday, below the norm. Trading volume is likely to increase in the next few days as momentum traders often use swings in trading volume to identify substantial volume accumulation or dissemination by institutional investors.

However, just a day of high volume buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors retain teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Nike Inc. (NYSE: NKE) 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 tracking the activity of these professional investors—and the moving averages they affect— traders are able to make make educated trades.

Trades for Nike Inc. (NYSE: NKE) have ranged from $49.01 – 68.19, and the stock now has a 50-day MA of $50.97 and 200-day MA of $54.43. Today’s last price is 24.03%% under the 52 week high of $68.19.

Earnings growth is a critical factor to look at when investing in stocks and investors seek companies that have grown their earnings by at least 25% for a 3 year period.

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