Bullish option flow was detected in NKE stock on January 24, 2022.
- 1 Bullish Option Flow
- 2 Piper ‘incrementally positive’ on Nike shares after management meeting
- 3 Seaport lists Nike, Foot Locker among Buys in Apparel/Footwear sector
- 4 Nike downgraded to Hold from Buy at HSBC
- 5 Nike lawsuit claims Lululemon infringed patents with Mirror device, CNBC says
- 6 Nike remains a ‘Best Idea’ at Guggenheim heading into 2022
- 7 📺🤑 Jim Cramer: Nike is a buy on a pullback
- 8 📉 NKE Stock Technical Analysis
Bullish Option Flow
Make sure to review this lesson on option flow so that you understand the image above.
Bullish option flow was detected in Nike stock with 21,219 calls trading, 1.9x expected, and implied vol increasing almost 5 points to 35.72%. Jun-22 $125 calls and Sep-22 $95 calls were the most active options, with total volume in those strikes near 13,600 contracts.
On January 18, 2022, Piper Sandler analyst Erinn Murphy left a meeting with Nike management “incrementally positive” on the shares. The analyst sees sequential improvement in the business as supply chain woes moderate and keeps an Overweight rating on the name with a $183 price target. Positive earnings revisions from here should support upward momentum in Nike shares, Murphy tells investors in a research note.
Seaport lists Nike, Foot Locker among Buys in Apparel/Footwear sector
On January 18, 2022, Seaport Global analyst Mitch Kummetz initiated coverage of 13 stocks in the Apparel/Footwear sector, including six with Buy ratings. His six Buy picks – Deckers Outdoor (DECK), Foot Locker (FL), Genesco (GCO), Nike (NKE), Shoe Carnival (SCVL) and Tillys (TLYS) – “mostly come down to how we feel about each company and its valuation,” but his overall view on the space is that the tough 2021 comparison “isn’t as difficult as what’s implied by the valuations,” Kummetz tells investors. He has Neutral ratings on Boot Barn (BOOT), Columbia Sportswear (COLM), Crocs (CROX), Under Armour (UAA), VF Corp. (VFC), Wolverine World Wide (WWW) and Zumiez (ZUMZ).
Nike downgraded to Hold from Buy at HSBC
On January 10, 2022, HSBC analyst Erwan Rambourg downgraded Nike to Hold from Buy with a price target of $182, down from $184. The analyst sees a “quite balanced” risk/reward and a lack of near-term catalysts for the shares going forward. Production issues in Vietnam for Western sporting goods brands are probably in the “rear view mirror,” but supply chain concerns for the sector aren’t completely “out of the woods,” Rambourg tells investors in a research note. The analyst believes Chinese demand will stay “lackluster” and notes that currency moves have “turned against the sector.” He also sees “unsupportive” valuations at current share levels.
Nike lawsuit claims Lululemon infringed patents with Mirror device, CNBC says
On January 5, 2022, Nike (NKE) filed a lawsuit in Manhattan federal court alleging Lululemon (LULU) infringed on its patents with the at-home Mirror fitness device and corresponding mobile apps, Lauren Thomas of CNBC reported. Lululemon shares were down in afternoon trading. Lululemon previously dismissed Nike’s concerns ahead of the suit being filed, according to Nike. Source: https://www.cnbc.com/2022/01/05/nike-sues-lululemon-for-patent-infringement-over-at-home-mirror-gym-and-fitness-apps.html?utm_term=Autofeed&utm_medium=Social&utm_content=Main&utm_source=Twitter#Echobox=1641412849
Nike remains a ‘Best Idea’ at Guggenheim heading into 2022
On January 3, 2022, Guggenheim analyst Robert Drbul says Nike remains his “Best Idea” heading into 2022 for the retailing and specialty softlines sector. Nike is the leader in the athletic industry with favorable secular tailwinds, Drbul tells investors in a research note. The analyst says the brand commands dominant market share, which he expects will “grow materially from here” as Nike’s digital business scales further and its new product innovation “remains robust.”
📺🤑 Jim Cramer: Nike is a buy on a pullback
📉 NKE Stock Technical Analysis
Both the long and short-term trends are negative. It is better to avoid buying stocks with negative trends. NKE is part of the Textiles, Apparel & Luxury Goods industry. There are 48 other stocks in this industry, NKE did better than 54% of them. NKE is currently trading in the middle of its 52-week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
There is a support zone ranging from 142.72 to 142.94. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also support at 136.49 from a trend line in the weekly time frame.
There is a resistance zone ranging from 163.45 to 163.57. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. There is also resistance at 173.85 from a horizontal line in the daily time frame.
NKE has a poor technical rating and the quality of the setup is also only medium at the moment. NKE stock has a Setup Rating of 4 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when NKE stock consolidates and has a Setup Rating of 8 or higher.