What are the odds of Nike to dip in October?


USD 106.25  1.29  1.23%   

While some baby boomers are getting worried about consumer cyclical space, it is reasonable to digest Nike Inc. We will evaluate why we are still optimistic in anticipation of a recovery. Here I will also expose some primary fundamental factors affecting Nike's services, and outline how it will impact the outlook for investors this year.
Published over two months ago
View all stories for Nike | View All Stories
The company reported the last year's revenue of 46.71 B. Total Income to common stockholders was 6.05 B with profit before taxes, overhead, and interest of 21.48 B. The company has Net Profit Margin of 12.94 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 16.09 %, which entails that for every 100 dollars of revenue, it generated 0.16 of operating income.

And What about dividends?

A dividend is the distribution of a portion of Nike earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Nike dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Nike one year expected dividend income is about $1.14 per share.
The current year Dividend Yield is expected to grow to 0.008758, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (1.6 B).
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-1.5 B-1.6 B
Dividend Yield 0.0072  0.008758 
Dividends per Basic Common Share 1.23  1.03 
Investing in dividend-paying stocks, such as Nike Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Nike must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Nike. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Nike's Liquidity

Nike financial leverage refers to using borrowed capital as a funding source to finance Nike Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nike financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Nike's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Nike, but it might be worth checking our own buy vs. sell analysis

A Deeper Perspective On Nike

Nike Inc holds a total of 1.28 Billion outstanding shares. The majority of Nike outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Nike Inc to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Nike Inc. Please pay attention to any change in the institutional holdings of Nike as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Ownership Breakdown

Retail Investors
Retail Investors15.52

Our perspective of the latest Nike dip

Maximum drawdown is down to 10.98. It may indicate a possible volatility dip.
As of the 29th of September, Nike secures the risk adjusted performance of (0.07), and Mean Deviation of 1.73. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Nike Inc, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to collect data for nineteen technical drivers for Nike, which can be compared to its peers in the industry. Please verify Nike Inc jensen alpha, as well as the relationship between the potential upside and skewness to decide if Nike Inc is priced some-what accurately, providing market reflects its recent price of 95.33 per share. Given that Nike Inc has jensen alpha of (0.08), we recommend you to check Nike's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Take On Nike

Although other entities in the footwear & accessories industry are either recovering or due for a correction, Nike may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor exit any shares of Nike at this time. The Nike Inc risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Nike.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Nike Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com