How to buy Nike shares | $124.23

Own Nike shares in just a few minutes.

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NIKE, Inc is a footwear & accessories business with stocks listed in the US. Nike shares (NKE) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$124.23 – an increase of 9.58% over the previous week.

How to buy shares in Nike

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Nike. Find the share by name or ticker symbol: NKE. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Nike reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of US$124.23, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Nike, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Nike. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Nike's share price?

Since the stock market crash in March caused by coronavirus, Nike's share price has had significant positive movement.

Its last market close was US$124.23, which is 19.30% up on its pre-crash value of US$100.25 and 107.05% up on the lowest point reached during the March crash when the shares fell as low as US$60.

If you had bought US$1,000 worth of Nike shares at the start of February 2020, those shares would have been worth US$632.40 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$1,251.00.

Nike share price

Use our graph to track the performance of NKE stocks over time.

Nike shares at a glance

Information last updated 2020-09-25.
Latest market closeUSD$124.23
52-week rangeUSD$60 - USD$127.54
50-day moving average USD$112.2069
200-day moving average USD$96.3119
Target priceUSD$141.95
PE ratio 73.0438
Dividend yield USD$0.98 (0.79%)
Earnings per share (TTM) USD$1.689

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Is it a good time to buy Nike stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Nike price performance over time

Historical closes compared with the close of $124.23 on 2020-09-25

1 week (2020-09-24) -0.42%
1 month (2020-09-01) 8.18%
3 months (2020-07-01) 27.55%
6 months (2020-04-01) 56.80%
1 year (2019-10-01) 34.62%
2 years (2018-10-01) 47.09%
3 years (2017-09-29) 139.59%
5 years (2015-10-01) 0.32%

Is Nike under- or over-valued?

Valuing Nike stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Nike's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Nike's P/E ratio

Nike's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 73x. In other words, Nike shares trade at around 73x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Nike's PEG ratio

Nike's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.9329. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Nike's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Nike's EBITDA

Nike's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$4.6 billion (£3.5 billion).

The EBITDA is a measure of a Nike's overall financial performance and is widely used to measure a its profitability.

Nike financials

Revenue TTM US$37.3 billion
Operating margin TTM 8.94%
Gross profit TTM US$16.2 billion
Return on assets TTM 7.01%
Return on equity TTM 29.2%
Profit margin 7.21%
Book value 5.906
Market capitalisation US$194.6 billion

TTM: trailing 12 months

Shorting Nike shares

There are currently 11.0 million Nike shares held short by investors – that's known as Nike's "short interest". This figure is 9% up from 10.1 million last month.

There are a few different ways that this level of interest in shorting Nike shares can be evaluated.

Nike's "short interest ratio" (SIR)

Nike's "short interest ratio" (SIR) is the quantity of Nike shares currently shorted divided by the average quantity of Nike shares traded daily (recently around 5.5 million). Nike's SIR currently stands at 2. In other words for every 100,000 Nike shares traded daily on the market, roughly 2000 shares are currently held short.

However Nike's short interest can also be evaluated against the total number of Nike shares, or, against the total number of tradable Nike shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Nike's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Nike shares in existence, roughly 10 shares are currently held short) or 0.0117% of the tradable shares (for every 100,000 tradable Nike shares, roughly 12 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Nike.

Find out more about how you can short Nike stock.

Nike's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Nike.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Nike's total ESG risk score

Total ESG risk: 17.59

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Nike's overall score of 17.59 (as at 07/31/2020) is excellent – landing it in it in the 13rd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Nike is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Nike's environmental score

Environmental score: 5.55/100

Nike's environmental score of 5.55 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Nike is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Nike's social score

Social score: 9.56/100

Nike's social score of 9.56 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Nike is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Nike's governance score

Governance score: 9.48/100

Nike's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that Nike is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Nike's controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Nike scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Nike hasn't always managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

NIKE, Inc was last rated for ESG on: 2020-08-01.

Total ESG score 17.59
Total ESG percentile 13.38
Environmental score 5.55
Environmental score percentile 6
Social score 9.56
Social score percentile 6
Governance score 9.48
Governance score percentile 6
Level of controversy 3

Nike share dividends

58%

Dividend payout ratio: 57.99% of net profits

Recently Nike has paid out, on average, around 57.99% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.79% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Nike shareholders could enjoy a 0.79% return on their shares, in the form of dividend payments. In Nike's case, that would currently equate to about $0.98 per share.

Nike's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Nike's most recent dividend payout was on 30 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 27 August 2020 (the "ex-dividend date").

Have Nike's shares ever split?

Nike's shares were split on a 2:1 basis on 23 December 2015. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Nike shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Nike shares which in turn could have impacted Nike's share price.

Nike share price volatility

Over the last 12 months, Nike's shares have ranged in value from as little as US$60 up to US$127.54. A popular way to gauge a stock's volatility is its "beta".

NKE.US volatility(beta: 0.84)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Nike's is 0.8356. This would suggest that Nike's shares are less volatile than average (for this exchange).

Nike overview

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories, including running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling, and other outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel. In addition, the company sells a line of performance equipment and accessories comprising bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities; and various plastic products to other manufacturers. Further, it provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; 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. Additionally, the company licenses agreements that permit unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It 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, digital platforms, independent distributors, licensees, and sales representatives. 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.

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