Nike Inc. (NYSE: NKE) shares rose in value Tuesday Dec 13 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 DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at Zacks Investment Research upgraded shares of Nike Inc. (NYSE: NKE) from Sell to Hold today. Zacks Investment Research currently has a rating of Hold on the shares. The one-year price target of $62.85 is above the opening price of $51.83, that has caused a number of other analysts to report on the stock in recent days. Looking back over the last 52 weeks, Nike Inc. stock has a high of $68.19. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Shares of Nike Inc. (NYSE: NKE) opened at $51.83 on Tuesday and has traded in a range between, $51.83 and $52.80, and last traded at $52.77, which is a jump of $1.23 or 2.39% over the previous closing price.
Nike Inc. (NYSE: NKE) currently has a market cap of 87.88B.
Nike Inc. (NYSE: NKE) Average Daily Trading Volume
1,799,653 shares traded hands yesterday, lower than normal, out of a total float 1,332,230,000. Trading volume is likely to increase in the next few days as investors often use increases in trading volume to pinpoint large volume accumulation or circulation by institutional investors.
However, a single day of significant buy side trading is not enough to assert a trend. As such, market traders will continue to look 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 professional investors have substantial teams of analysts that investigate 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.
Traders can make more useful judgments on trades when they follow the activity of professional investors.
With that in mind, Nike Inc. (NYSE: NKE) now has a 50-day MA of $50.97 and 200-day MA of $54.19. It has traded in a 52-week range between $49.01 – 68.19 and today’s last price is 22.62%% lower than the 52 week high of $68.19.
Earnings growth is a critical factor to research when investing in stocks and investors identify companies that have increased their earnings by at least 25% for the past 3 years.
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