Best Investing Stock Analysis as of 30 March 2024
NYSE: NIKE, Inc. (NKE)
- NIKE, Inc. and its subsidiaries globally design, develop, market, and sell athletic footwear, apparel, equipment, accessories, and services.
- NIKE offers athletic and casual footwear, apparel, and accessories under the Jumpman trademark, and casual sneakers, apparel, and accessories under various trademarks including Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell.
- The company sells performance equipment and accessories under the NIKE brand, including bags, sport balls, socks, eyewear, and more.
- NIKE, Inc. was established in 1964 and is based in Beaverton, Oregon.
Shareholding Patterns of Nike Inc. (NKE)
| Holder | Shares | Date Reported | % Out | Value |
|---|---|---|---|---|
| Vanguard Group Inc | 109,543,029 | Dec 30, 2023 | 8.95% | 10,294,854,233 |
| Blackrock Inc. | 89,775,302 | Dec 30, 2023 | 7.33% | 8,437,083,183 |
| State Street Corporation | 56,238,509 | Dec 30, 2023 | 4.59% | 5,285,295,264 |
| Capital International Investors | 27,609,613 | Dec 30, 2023 | 2.26% | 2,594,751,522 |
| Morgan Stanley | 25,188,320 | Dec 30, 2023 | 2.06% | 2,367,198,398 |
| Geode Capital Management, LLC | 23,740,389 | Dec 30, 2023 | 1.94% | 2,231,121,837 |
| Wellington Management Group, LLP | 22,487,087 | Dec 30, 2023 | 1.84% | 2,113,336,511 |
| FMR, LLC | 22,223,814 | Dec 30, 2023 | 1.82% | 2,088,594,114 |
| Alliancebernstein L.P. | 20,070,605 | Dec 30, 2023 | 1.64% | 1,886,235,525 |
| Bank Of New York Mellon Corporation | 18,852,759 | Dec 30, 2023 | 1.54% | 1,771,782,354 |
Major Holders
| 1.41% | % of Shares Held by All Insider |
| 83.25% | % of Shares Held by Institutions |
| 84.43% | % of Float Held by Institutions |
| 3,245 | Number of Institutions Holding Shares |
List of subsidiaries Company of NIKE:
What we think are Pros of business:
- NIKE’s emphasis on direct-to-consumer sales, geographic expansion, and key growth areas positions it for potential revenue and profitability growth in the future.
- Nike has announced anticipated cost savings of $2 billion over the next two fiscal years.
- Nike’s current stock is trading at a notable discount compared to its own 5-year averages, as indicated by various price multiples.
- Nike aims to sustain double-digit growth by leveraging its Nike Digital platform and expanding its presence in the Chinese market.
What we think the RISK are:
- NIKE faced a slight downturn attributed to macroeconomic challenges and inefficiencies in its direct-to-customer investments.
- In 2024, Nike encounters ongoing challenges from supply chain disruptions and reduced consumer spending. However, analysts anticipate a more favorable outlook for 2025.
- Nike’s stock has recently shown weaker performance compared to the index.
Fundamentals:
- Market Cap: 142.39 Billion
- Revenue: 51.81 Billion
- 52 Week Range: 88.66 – 128.68
- Dividend: 1.48 (1.57%)
- EPS: 3.34
- PE: 27.41
Technical for a long-term perspective:
- Stock is trading at multi year support level.
- There is very high chances of bounce from current levels.
- RSI is also near its oversold territory and a good bounce is expected.
- First target for short term is its EMA levels near 111 and then price will shoot up towards 130 level.
Entry = 93
Stop Loss = 85
Target = 111 / 130 / 170
Our Final Thought:
Undoubtedly, Nike stands as an iconic company with lasting brand influence. Nike’s financial performance in the quarter ending on November 30, 2023, was mixed. Sales growth was sluggish and SG&A expenses rose, but there was improved demand in China and expanded gross margins due to lower freight costs.
Technically it is also trading at support level and price will bounce very hard from these levels towards its EMA. If price comes down at 75-80 then you can add further If you want to hold this for long term.
Please note: This is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
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