Zion Williamson, a Duke University basketball player, suffered an injury, when his Nike shoe ripped in half in the opening moments of Dukes game against the University of North Carolina on Wednesday. Williamson fell to the court and injured his knee, which kept him out of the rest of the game.
Nike shares closed lower for the sixth time in the past thirteen trading sessions in New York on Thursday. It has also been the steepest daily loss since January 3rd. The stock went down 1.05% ($0.89) to $83.95, after touching an intraday low at $83.35, or a price level not seen since February 11th ($82.87).
Shares of Nike Inc have risen 13.23% so far in 2019 compared with a 10.69% gain for the benchmark index, S&P 500 (SPX).
In 2018, Nike Inc’s stock surged 18.53%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.
“We are obviously concerned and want to wish Zion a speedy recovery. The quality and performance of our products are of utmost importance,” Nike Inc said in a statement.
“While this is an isolated occurrence, we are working to identify the issue,” the company said.
“Its certainly a moment of embarrassment for the brand on a grand scale especially in todays world where live sporting events dominate social media conversation,” Baird analyst Jonathan Komp said, cited by CNBC.
Komp noted that Nikes brand was established around the notion that clients are able to acquire the same high-performance item, which their favorite athlete uses.
“So if handled correctly, this PR issue could be an opportunity to reinforce this message with consumers. But otherwise premature to comment on the cause of the malfunction or the brands ultimate reaction. And at this point we suspect this is a contained issue unlikely to broaden to any lasting concern for the stock,” he said.
According to CNN Money, the 30 analysts, offering 12-month forecasts regarding Nike Incs stock price, have a median target of $90.00, with a high estimate of $103.00 and a low estimate of $55.00. The median estimate represents a 7.21% upside compared to the closing price of $83.95 on February 21st.
The same media also reported that 21 out of 33 surveyed investment analysts had rated Nike Incs stock as “Buy”, while 8 – as “Hold”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Nike Inc (NKE) are presented as follows:
Central Pivot Point – $84.68
R1 – $86.48
R2 – $87.59
R3 – $89.39
R4 – $91.20
S1 – $83.57
S2 – $81.77
S3 – $80.66
S4 – $79.56
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