Nike Inc. (NYSE: NKE) shares rose yesterday on lower trade volume than normal after more analysts initiated coverage on the stock.
Analysts at Susquehanna initiated coverage on Nike Inc. (NYSE: NKE) stock, rating the company at Positive. The company currently has a rating of Positive on the stock. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has earned a consensus one-year price target of $63.77, above the opening price of $51.95. Nike Inc. stock has a 52-week high of $68.19. Changes in price targets are not unheard of as analysts and brokerage firms will issue periodic updates after beginning or initiating coverage.
Meanwhile, the Dow Jones Industrial Average DJIA, +0.49% rose 88.55 points, or 0.5% to close at 18,329.04, yesterday.
The S&P 500 index SPX, +0.46% closed up 9.92 points, or 0.5%, at 2,163.66
The Nasdaq Composite Index COMP, +0.69% gained 36.27 points, or 0.7%, to finish at 5,328.67.
In early trading today however, the Dow Jones Industrial Average DJIA, -0.63% dropped 103 points, or 0.6%, to 18,227.
The S&P 500 index SPX, -0.69% fell 12 points, or 0.6%, to 2,150, with all of its main sectors trading lower.
Meanwhile the Nasdaq Composite Index COMP, -0.79% fell 32 points, or 0.6%, to 5,295, dragged down by heavy losses in biotech stocks.
Shares of Nike Inc. (NYSE: NKE) opened at $51.95 yesterday trading between $51.75 and $52.25, and last traded at $51.86, which is a jump of $0.07 or 0.00 over the previous closing price.
Nike Inc. (NYSE: NKE) currently has a market cap of 86.71B.
Nike Inc.Trading Volume
1,123,625 shares traded hands yesterday, below normal, out of a total float 1,339,957,000. Swing traders often use upticks in trading volume to identify large volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
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 how they affect moving averages,it allows for traders to make more impactful choices on trades.
With that in mind, Nike Inc. (NYSE: NKE) now has a 50-day MA of $55.64 and 200-day MA of $56.65. 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 ann important factor to research when buying stocks and investors identify companies that have increased their earnings by at least 25% for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.