Share of Nike fell to their lowest level since March of 2020 after getting downgraded to neutral from a buy recommendation at Citigroup. Analysts at Citigroup also lowered their target price of the stock to $72 per share with shares trading at $70 currently.
Investors have been cooling to Nike shares as the company continues to deal with a fundamental turnaround.
Revenue for the athletic wear giant has been on the decline for the last year as consumers continue to buy products from a crowded field of retail apparel manufacturer.
As a result, Nike spent the entire year of 2024 trading in a long-term bear market that looks to continue its route.
Today’s selling came on increased volume as investors anticipate the stock moving below $70. This comes after the stock broke below $75 again earlier this week. That $75 price line has held as support for Nike seven of the last nine months of trading.
The combination of negative momentum and a move below $70 is likely to increase selling pressure further, resulting in even lower prices.
Options traders have also tilted their outlook on Nike Stock lower.
On Friday, put option volume increased on options with expiration dates more than three months away from today. This increase in bearish positions suggests that options traders are preparing for lower prices on Nike Stock.
The company is set for a March 20 earnings reporting date.
Shares of Nike are in a bear market trend with a price target of $50.
