Nike Inc. (NYSE: NKE) shares rose in value Monday Dec 19 with lower 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 Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Analysts at Vetr Inc. upgraded shares of Nike Inc. (NYSE: NKE) from Buy to Strong-Buy today. Vetr Inc. currently has a rating of Strong-Buy on the shares. A number of other analysts have issued reports on the stock recently, and Nike Inc. has secured a consensus one-year price target of $62.18, above the opening price of $50.91, a difference of 12.12 percent. Nike Inc. stock has a 52-week high of $68.19. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Nike Inc. (NYSE: NKE) opened at $50.91 on Tuesday trading between $50.65 and $51.36, and last traded at $51.30, a spike of $0.38 or 0.74% compared to the previous closing price.
Nike Inc. (NYSE: NKE) now has a market cap of 85.43B.
Nike Inc. (NYSE: NKE) Average Daily Trading Volume
1,137,839 shares traded hands yesterday, lower than the norm, out of a total float 1,332,230,000. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to pinpoint substantial volume accumulation or circulation by institutional investors.
However, just a day of significant buy side trading is not enough to determine a trend. So market traders will continue to look for institutional sponsorship as an indicator 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.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
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.
Traders are able to make make smarter trades when they track the activity of professional investors.
Trades for Nike Inc. (NYSE: NKE) have ranged from $49.01 – 68.195, and the stock now has a 50-day MA of $50.96 and 200-day MA of $54.10. Today’s last price is 24.78%% below the 52 week high of $68.19.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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