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Shares of Nike, Inc. bounced back 12.81% after last year’s November decline when stocks settled at $49.04. During the last five days, shares were sent lower nearly -0.22% amid persistent headwinds and is now up by about 8.38%, which held steady in strong territory.

Subsequently, shares declined -8.14% from $60.53, while its 52-week high gained -5.03% on April 21st for the past 12 months.   

The sportswear and apparel company’s revenue grew at an average annualized rate of 10% during the past five years. However, it seemed that the company’s most recent quarter rose 5%.

The company’s net profit margin for the 12-month period stood at 12.02%, compared to its rival with only 5.98% net margin. Further the sector’s average is 11.93%, marking that it is currently in a mild territory compared to its peers and sector.  

Research Analysts’ Restatements

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Nike, Inc. shares was down 7.1% during the course of the session on Wednesday after Argus lowered the stock from a buy rating to a hold rating. Argus set a $55.56 price target on the stock, higher than its previous price target of $55.25.

Recently, the company traded lower at $53.76 and finish at $53.92 at the close of trade, with trading volume reaching 37,402,621 shares.

Several research analysts have also reiterated their rating on the company’s stock after Credit Suisse Group AG reaffirmed a buy rating and gave a price target of $60.00 on December 19th. Meanwhile, Vetr downgraded the stock from a strong-buy rating to a buy rating and issued a price target of $57.27 on December 20th.  

The chart below illustrates Nike, Inc. stock movement after Argus downgraded its rating on the company’s stock, following several restatements on some research analysts. The stock is currently trading at $55.39 in a heavy trading volume of 853, near resistance 55.33.  

Hence, given a consolidating tone on the stock, the RSI still suggests that the level is nearing at 50, which stood at 46.1225. It could therefore signal that the stock may held steady in a neutral territory.

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Conclusion

As Nike, Inc. shares doesn’t clearly show any confirmation signal, we recommend market participants to wait on the sidelines unless the stock price will test the near resistance level, which could possibly breakthrough in the next sessions.

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