Your Complete Guide to Buying Shares of Nike Stock

Nike is one of the world's most recognizable sports brands, with a history dating back to 1964.

The company's stock, listed on the New York Stock Exchange (NYSE) under the ticker symbol NKE, has been a popular investment choice for many years.

Nike's strong brand recognition and loyal customer base have contributed to its consistent revenue growth and profitability.

To buy shares of Nike stock, you'll need to open a brokerage account with a reputable online broker, such as Fidelity or Charles Schwab, which can be done with as little as $100.

You can also consider using a mobile trading app, like Robinhood, to buy and sell shares on the go.

Before you buy Nike stock, you need to dig into the company and industry fundamentals. Research Nike's management team, revenue, net income and earnings, as well as expectations and anticipated challenges for both the company and the athletic wear industry as a whole.

You can view Nike's annual and quarterly statements on its investor relations page or SEC.gov, which is required by the U.S. Securities and Exchange Commission.

To make an informed decision, consider not just what could go well for Nike in the coming months and years, but also what could go wrong and how that could affect the stock price.

You'll also want to be aware that Nike has two share classes: Class A and B. You only need to worry about Class B as Class A doesn't trade on the public market and is held primarily by Nike's founding family.

Class A shares can be converted at a one-to-one ratio into Class B shares, but the reverse is not true. Class A shareholders effectively control the company by electing nine of the 12 members of Nike's board.

Nike's market performance has been quite volatile since its IPO in 1980, with a stock price that once dipped to $0.10 in 1984, but has since risen to an all-time high of $179.10 in 2021.

Nike's current market capitalization is a staggering $123.70 billion, with 1.2 billion outstanding shares and a public float of 1.18 billion.

The company's P/E ratio of 22.34 is notably higher than the industry average of 19.00, indicating investors' willingness to pay a premium for Nike's earnings.

The sports clothing and footwear market is expected to grow significantly, from $485.3 billion in 2023 to $994.5 billion by 2030, with a CAGR of 12.82%.

Nike dominates the global athletic footwear and apparel industry, with an estimated market share of 30% in the footwear segment and 24% in the apparel segment, competing with notable brands like Adidas and Under Armour.

Nike's P/E ratio is roughly 24x, meaning its share price is 24 times its recent earnings.

This is relatively low compared to the NASDAQ 100's trailing 12-month P/E ratio of 27.29 at the end of 2019.

A low P/E ratio could mean investors are pessimistic about the outlook for Nike's shares.

Nike's stock market performance is a great example of how a company's value can fluctuate over time.

Nike went public in December 1980 with a price of $23 per share. The company has experienced 7 stock splits and significant volatility since going public on the New York Stock Exchange (NYSE).

In 2024, Nike Inc. had a market capitalisation of $123.70 billion, which is a testament to the company's growth and success.

Nike's stock price has declined to an all-time low of $0.10 on October 31, 1984, but has also risen to an all-time high of $179.10 on November 5, 2021.

Here's a quick snapshot of Nike's price performance over the past year:

Nike's P/E ratio of 22.34 is notably higher than the industry average of approximately 19.00, reflecting investors' willingness to pay a premium for Nike's earnings.

The market for sports clothing and footwear is a massive industry that's expected to grow significantly in the coming years. As of 2023, it was valued at $485.3 billion.

This growth is projected to continue, with a compound annual growth rate (CAGR) of 12.82% expected to reach a staggering $994.5 billion by 2030.

Nike is a dominant force in this industry, competing with notable brands like Adidas, Puma, Under Armour, and Skechers.

Nike (NKE) shares can be monitored and traded on the Plus500 CFD trading platform.

Trading hours for Nike shares on Plus500 are from Monday at 3:30 PM CET to Friday at 10:00 PM CET.

Please note that trading platform hours may vary depending on the individual operator.

Traders can take advantage of these hours to make informed decisions and execute trades.

To buy shares of Nike stock, you'll need to log into your brokerage account and enter Nike's ticker symbol, NKE. You can then input the amount of shares or dollar value of shares you want to purchase.

You'll need to choose between order types, such as market orders or limit orders. Market orders are completed right away at the current trading price, while limit orders hold off on executing your purchase until a certain price is met.

Trading hours for Nike shares are Monday through Friday from 9:30 a.m. until 4:00 p.m. ET, though your brokerage may offer extended hours before or after the market closes.

Opening a brokerage account is a crucial step in buying and selling shares. You'll need to open an account if you don't already have one. The process is quick and painless.

To open a brokerage account, you'll need to decide where to house your account. Consider trading commissions, account minimums, fees, and investment selection. Fidelity, for example, offers a video tutorial and a step-by-step guide to help you get started.

You can fund your account via electronic transfer from a bank or savings account. This is a convenient and efficient way to transfer money. Some brokers, like Fidelity, have a five-star rating and are highly rated by users.

Here are some of the best-rated brokers and trading platforms:

You should take your time to research the brokers to find the best one for you. This will ensure that you're comfortable with the fees, commissions, and investment options.

To sell shares with Plus500, you'll need to place a sell order for Nike CFD. This involves specifying the number of shares and market orders, such as close-at-loss and close-at-profit orders.

You can find Nike on the Plus500 platform using the stock ticker symbol 'NKE'. This is the same symbol you'd use to find Nike on the platform when buying shares.

Before placing a sell order, it's a good idea to conduct technical analysis and fundamental analysis of Nike stock. This will help you make an informed decision about when to sell.

Once you've decided to sell, simply place a sell order for Nike CFD on the Plus500 platform. You can monitor and track the performance of your trade to see how it's doing.

Here are the specific steps to follow when selling shares with Plus500:

To place an order for buying shares, you'll need to log into your brokerage account. This is where the magic happens, and you get to buy the shares you've been eyeing.

You'll need to enter Nike's ticker symbol, which is NKE. This will bring up the current trading price and other relevant information.

If you want to buy a specific amount of shares, you can enter the number of shares you want to buy. Alternatively, you can enter the amount you want to invest, and the platform will calculate the number of fractional shares you can buy.

You'll also need to decide on an order type. Market orders are completed right away at the current trading price, while limit orders hold off on executing your purchase until a certain price is met.

Here's a quick rundown of the key information you'll need to enter:

By following these simple steps, you'll be well on your way to buying the shares you want. Just remember to keep an eye on the market and adjust your strategy as needed.

Before investing in Nike stock, consider the company's financial performance, which has consistently shown growth over the years, with revenue increasing from $32.3 billion in 2015 to $44.5 billion in 2020.

Nike's strong brand recognition and marketing efforts have contributed to its success, with the company spending around 3.4% of its revenue on advertising and marketing in 2020.

Setting a budget for your investments is a crucial step in making informed decisions about where to put your money. To determine how much to invest in Nike, ask yourself four questions: what's your budget, what's Nike's current price, what's your investing strategy, and how will Nike fit into your overall portfolio.

Your budget is the first thing to consider. You don't want to invest money you'll need for regular expenses or emergency fund. In fact, you should set aside at least something for retirement before investing in other types of investments.

To get started, consider your current expenses and emergency fund. Once you've accounted for those, you can think about investing extra money in Nike. A good rule of thumb is to limit individual stocks to 10% of your overall portfolio, with the rest made up of low-cost index funds for easy diversification.

If you're new to investing, you might want to start small with one or two shares of Nike. You can always add to your investment over time. A small investment can also help you get your money in the market as soon as possible, rather than waiting until you build up a large lump sum.

Here's a quick rundown of the factors to consider when setting a budget for Nike:

Remember, investing in Nike should be part of a broader investment strategy, not the only thing you're investing in. By considering these factors and starting small, you can make informed decisions about how to invest in Nike and other opportunities.

Lower is better when it comes to ESG scores, which measure a company's sustainability and social impact.

A lower ESG score is generally associated with lower risk for would-be investors, making it a valuable consideration for those looking to make informed investment decisions.

As you start to build your investment portfolio, it's essential to consider the return on your investment. You can buy Nike stock with a brokerage account, and with a market order, your broker will purchase the stock as soon as possible, but the share price might vary.

The goal of a market order is to execute the order immediately, so speed takes priority over price. A limit order, on the other hand, prioritizes price over speed, and it's a good option to protect yourself against wild swings in a stock's price.

To get started with buying stock, you'll need to find Nike's ticker symbol, NKE, and enter it correctly on your broker's website. With a limit order, you'll fill in the limit price as part of the trade ticket, and your broker will notify you when your order goes through.

Nike pays a dividend to its investors each quarter, with a quarterly rate of $0.37 per share ($1.48 annually) as of mid-2024.

Its share price was in the low $90s at the time, resulting in a 1.6% dividend yield, slightly higher than the S&P 500's 1.4% dividend yield.

Nike has a long history of growing its dividend, increasing the payment rate every year since 2004.

This consistent growth makes Nike an ideal stock for investors seeking a steadily rising income stream.

Nike is a very profitable company, reporting $12.4 billion of revenue in its fiscal 2024 third quarter, a slight increase from the previous year.

Its net income was almost $1.2 billion in the third quarter and $4.2 billion over the nine-month period, with a 4% increase over the nine-month period compared to the previous year.

Nike's earnings per share have grown even faster over the nine-month period, rising 7% due to a steady decline in its outstanding shares as it repurchases stock.

The company produces a lot of cash, allowing it to return money to shareholders via dividends and share repurchases. Nike paid $562 million of dividends in its fiscal third quarter, a 6% increase year over year.

Nike's solid and growing profitability has enabled it to maintain a strong balance sheet, with $10.6 billion of cash, equivalents, and short-term investments at the end of its fiscal third quarter.

This is a significant advantage, as its long-term debt of $8.9 billion is more than offset by its cash reserves.

Will Nike stock split in the near future? As of mid-2024, Nike didn't have an upcoming stock split planned.

Nike has a history of stock splits, with the company splitting its stock several times in the past.

Here are the dates of Nike's previous stock splits:

If Nike continues to grow its earnings per share, its stock price should keep rising, eventually leading the company to announce another stock split.