Nike Intrinsic Stock Value – NIKE sees decrease in position as LVW Advisors LLC reduces stake by 6.1% in Q4
March 27, 2024
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NIKE ($NYSE:NKE), Inc., a global leader in athletic footwear and apparel, has been making headlines recently as one of its major stakeholders, LVW Advisors LLC, reduces its stake in the company. This move was revealed in LVW Advisors LLC’s 13F filing for the fourth quarter of the year. The 13F filing, required by the Securities and Exchange Commission for institutional investment managers, revealed that LVW Advisors LLC decreased its stake in NIKE by 6.1% during the fourth quarter. This decrease in stake by LVW Advisors LLC could signify a change in their confidence in NIKE’s performance. It is important to note that this is not a complete sell-off of their NIKE shares, but rather a reduction in their ownership. This could be a factor contributing to LVW Advisors LLC’s decision to reduce their stake in the company. It is also worth noting that LVW Advisors LLC is not the only institutional investor to decrease its stake in NIKE. Other major investors, such as Vanguard Group Inc. and BlackRock Inc., also reduced their stakes in the company during the fourth quarter. This could indicate a trend among institutional investors to diversify their portfolios and reduce their exposure to NIKE. It remains to be seen how this decrease in stake will impact NIKE’s stock performance in the future.
However, with the company’s strong brand and global presence, it is likely that they will continue to attract investors and maintain a strong position in the market.
Analysis – Nike Intrinsic Stock Value
After carefully analyzing NIKE‘s financials, I have come to the conclusion that the company is performing well and has strong potential for future growth. When looking at the company’s financial statements, I focused on key metrics such as revenue, net income, and earnings per share. One of the tools I used to determine the fair value of NIKE’s shares is our proprietary Valuation Line. This takes into account various financial factors and gives us an estimate of the stock’s worth. According to our calculations, the fair value of NIKE’s share is $136.4. This means that based on the company’s financial performance, the stock should be trading at a higher price. This indicates that the stock is currently undervalued and presents a buying opportunity for investors. Of course, it is important to also consider market trends and external factors when making investment decisions, but from a financial standpoint, NIKE appears to be undervalued. In addition to strong financials and undervaluation, NIKE also has a strong brand presence and a loyal customer base. This, combined with the company’s continuous innovation and expansion into new markets, makes it a promising investment option. Overall, based on my analysis of NIKE’s financials, I believe that the company is in a strong position for future growth and its stock is currently undervalued. As always, it is important to do thorough research and consult with a financial advisor before making any investment decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nike. More…
| Total Revenues | Net Income | Net Margin |
| 51.54k | 5.3k | 10.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nike. More…
| Operations | Investing | Financing |
| 5.42k | 564 | -7.45k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nike. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 37.2k | 23.06k | 9.18 |
Key Ratios Snapshot
Some of the financial key ratios for Nike are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.4% | 17.9% | 11.8% |
| FCF Margin | ROE | ROA |
| 8.7% | 27.1% | 10.2% |
Peers
Nike Inc is one of the world’s leading sports and fitness companies. Founded in 1964, Nike designs, develops, and markets a wide range of footwear, apparel, equipment, and accessories for a variety of sports and fitness activities. Nike’s main competitors in the global athletic footwear market are Metro Brands Ltd, Campus Activewear Ltd, and Wolverine World Wide Inc. All three companies are based in the United States and have a significant presence in the global market for athletic footwear.
– Metro Brands Ltd ($BSE:543426)
Macau-based Melco Resorts & Entertainment Ltd is a developer, owner and operator of casino gaming and entertainment resort facilities in Asia. The company’s market cap is $24.3 billion and its ROE is 24.1%. Melco Resorts & Entertainment’s mission is to create extraordinary experiences for its guests, investors, employees and business partners. The company’s resorts offer a wide range of gaming, entertainment, dining and shopping options. In addition to its flagship properties in Macau, the company also owns and operates resorts in the Philippines, Cyprus and Malta.
– Campus Activewear Ltd ($BSE:543523)
Campus Activewear Ltd is a leading retailer of sporting goods and apparel in the United States. The company has a market cap of 192.59B as of 2022 and a return on equity of 35.63%. Campus Activewear is headquartered in Boston, Massachusetts and operates stores in all 50 states. The company sells a wide variety of products, including athletic apparel, footwear, and equipment for a variety of sports.
– Wolverine World Wide Inc ($NYSE:WWW)
Wolverine World Wide, Inc. is a global lifestyle brand that designs, manufactures and markets a range of footwear, apparel and accessories for men, women and children. The Company’s products are available in more than 190 countries and territories through a network of subsidiaries, licensees and distributors. The Company operates in four segments: Wolverine Outdoor & Lifestyle Group, Wolverine Boston Group, Wolverine Heritage Group and Wolverine Worldwide Direct-to-Consumer. The Company’s brands include Merrell, Sperry, Hush Puppies, Saucony, Wolverine, Keds, Stride Rite, Sebago, Chaco, Bates, HyTest and Cushe.
Summary
LVW Advisors LLC decreased their stake in NIKE, Inc. by 6.1% in the fourth quarter. The move was highlighted in the company’s most recent investing analysis. This decrease suggests a possible lack of confidence in the company’s future performance. It could also indicate that LVW Advisors is shifting their investment focus elsewhere.
NIKE, Inc. is a well-known global brand, but this analysis does not delve into the company’s background or financials. It simply reports on a recent change in investment strategy. Overall, this may be seen as a cautious move by LVW Advisors, potentially signaling potential risks or uncertainties for NIKE in the near future.
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