NIKE, Inc. (NKE) Stock | Announces Stock Repurchase Program, Increase in Dividend, and Two for One Stock Split

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NIKE, Inc. (NYSE: NKE)

 

NIKE, Inc. (NKE), an athletic footwear,apparel,equipment, and accessories company on Thursday announced a new four year $12 billion share repurchase program. NKE also announced a 14% increase in their quarterly dividend, and a two for one stock split taking place on December 24th.  

 

NIKE, Inc. CEO Comments

“In a growing sports industry, NIKE is the clear leader,” said Mark Parker, President and CEO of NIKE, Inc. “We are built for growth, while also staying committed to creating shareholder value over the long term. We’ve proven it time and again, having returned over $23 billion to shareholders over the last 14 years through share repurchases and dividends. Moving forward, we see even greater potential for NIKE as we continue to unlock new markets, new experiences and new products.”  Business Wire

NKE Technical Analysis

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NKE gapped up in price on Friday to $132.07, up from the prior day’s close of $125.78, which is a 5% increase on the favorable news. Taking a look at the daily chart, we can see the last time NKE traded above this price level was on October 22nd, when it closed at $132.41. Taking a further look back on the daily chart, we can see NKE has been on an overall upswing dating back to August 25th when it traded at $103.53. More recently, NKE has been bouncing off a dip in price from November 13th when it traded at $121.15. With this gap up in price, NKE is approaching its 52 week high price of $133.52, so it will be interesting to see if we can test that level. NKE has a high float of 673.3 million shares and is trading below its normal daily trading volume. NKE did reach pre market highs of 132.19. For trading purposes, my entry point would have been $132.15 looking for a run to $133. My stop loss would have been $132, fearing anything below that and the stock would start to fill in the gap up.

 

Company Profile

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories for men, women, and kids worldwide. The company offers products in eight categories, including running, basketball, football, men’s training, women’s training, sportswear, action sports, and golf under the NIKE and Jordan brand names. It also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking, and outdoor activities. In addition, the company sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos. Further, it sells a line of performance equipment, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, golf clubs, and other equipment under the NIKE brand name for sports activities; various plastic products to other manufacturers; athletic and casual footwear, apparel, and accessories; casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks; and action sports and youth lifestyle apparel and accessories under the Hurley trademark. NIKE, Inc. sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores and Internet Websites (direct to consumer operations), as well as a mix of independent distributors and licensees. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.  Yahoo Finance

 

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