As many as seven brokerages have lowered their price targets on Nike stock
A number of analysts have cut their price target on the blue-chip apparel maker Nike Inc. (NYSE: NKE). This series of bearish ratings comes ahead of the company’s fiscal third quarter earnings report, which is due after the close on Monday, March 21. noted a “volatile macro backdrop” ahead of the company’s earnings event, but added that the brand still has a “dominant share” of the web data the company tracks.
Between today and yesterday, no less than six additional analysts lowered their price targets on Nike stock. Stifel made the biggest move, lowering his target to $160 from $202. As of today, 19 of 22 hedging brokerages rated NKE a “buy” or better, while the 12-month consensus price target of $169.78 was a premium of 35.6. % from last night’s close.
Nike Stock is muted in response to the slew of bear notes, last seen up 0.1% to trade at $125.37. On the charts, the stock rebounds from a March 14 decline to $116.75 – its lowest trading level since September 2020. In 2022, NKE is down almost 25%.
Over the past two years, NKE has averaged a post-earnings movement of 7.8%, regardless of direction. Of the last eight reports, five of the day after Nike stock sessions were positive, including a 6.1% gain in December.
Options traders were much more pessimistic ahead of the NKE earnings event. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX), the 10-day put/call volume ratio of 1.06 is above 92% of the l last year, indicating puts have been recovered at a much faster rate than usual over the past two weeks
It is also worth noting the stock Schaeffer’s Volatility Dashboard (SVS) sits at 97 out of 100, meaning the stock has exceeded options traders’ volatility expectations over the past year.