Nike Shares Trade Lower Despite Recent Insider Buying
Nike Inc (NYSE:NKE) shares are trading slightly lower Friday morning. The stock is reversing from strength earlier this week following reports of continued insider buying, which typically signals confidence from company leadership.
The stock is down as the broader market is experiencing mixed performance, with major indices like the Dow Jones and S&P 500 showing slight gains.
Nike CEO Adds To Stake As Shares Face Technical Pressure
Nike’s CEO, Elliott Hill, recently disclosed in a Form 4 filing that he purchased 16,388 shares at an average price of $61.10, totaling just over $1 million.
This purchase brings his total holdings to 241,587 shares, following a similar move by Apple Inc CEO Tim Cook, who bought 50,000 shares at an average price of $58.97.
Technical Analysis
The stock is trading 2.5% below its 20-day SMA and 8.1% below its 100-day SMA, demonstrating a bearish trend. Shares have decreased by 14.93% over the past 12 months and are currently positioned closer to their 52-week lows than highs.
The RSI is at 43.59, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $66.50
- Key Support: $59.50
Section: Earnings & Analyst Outlook
Investors are looking ahead to the next earnings report on March 19.
- EPS Estimate: 32 cents (Down from 54 cents YoY)
- Revenue Estimate: $11.24 billion (Down from $11.27 billion YoY)
- Valuation: P/E of 37.3x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $77.65. Recent analyst moves include:
- UBS: Neutral (Lowered Target to $62.00)
- Citigroup: Neutral (Lowered Target to $65.00)
- Barclays: Equal-Weight (Lowered Target to $64.00)
Valuation Insight: While the stock trades at a premium P/E multiple, the strong consensus and 41% expected earnings decline suggest analysts view this growth as justification for the 24% upside to analyst targets.
Top ETF Exposure
- The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY): 2.21% Weight
- State Street SPDR Russell 1000 Yield Focus ETF (NYSE:ONEY): 1.17% Weight
Significance: Because NKE carries meaningful weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
NKE Price Action: Nike shares were down 0.8% at $63.20 at the time of publication on Friday, according to Benzinga Pro data.
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