A Comprehensive Guide to Nike Class A Shares

Nike Class A shares are a type of stock that represents ownership in the company.

These shares have a unique set of characteristics that set them apart from other types of Nike stock.

As a publicly traded company, Nike Class A shares are listed on the New York Stock Exchange (NYSE) under the ticker symbol NKE.

Investors can buy and sell these shares on the open market, giving them a way to participate in the company's growth and success.

Nike, Inc. is a leading retailer of athletic footwear and apparel.

Nike was founded by Philip Knight and Bill Bowerman in 1964.

The company's Class A shares are largely controlled by the founder and his family, giving them effective control of the company.

Most of Nike's directors are elected by Class A shares, which means the founder has significant influence over the company's decisions.

Here's a breakdown of the ownership structure:

Nike's unique ownership structure is worth noting, especially for investors considering purchasing Class A shares.

The term "insider" refers to people in senior management positions and members of the board of directors, as well as people or entities that own more than 10% of the company's stock.

Direct ownership is what matters when it comes to insider shareholders, not indirect ownership or shares accessible through stock options.

The list of top 3 individual insider shareholders only includes direct ownership, not any indirect or option-based shares.

These individuals are not insiders in the sense of being involved in insider trading, but rather due to their position within the company or their significant ownership stake.

The ownership concentration of Nike is quite interesting. About 65.8% of public Nike stock is held by institutional investors, with the general public holding an additional 13.3%. This leaves company insiders with a significant stake, holding 20.7% of shares as of May 2024.

The majority of Class A shares are controlled by the Knight family, with more than 97% still held through holding companies and trusts. This gives them effective control over Nike's board, as the Class A shares elect nine out of 12 directors.

Swoosh LLC, a limited liability company created by Phil Knight, owns a substantial portion of Nike's shares. It holds 230,750,000 shares of Class A stock and another 230,750,000 of Class B stock, making up 77.5% of all outstanding Class A shares and 16.1% of all Class B shares.

Travis Knight, Phil's son, serves on Nike's board of directors and has been entrusted with the voting interests in Swoosh LLC since his father's retirement in 2016.

Investing in Nike can be a great way to diversify your portfolio, but it's essential to understand the risks involved. PHK, the largest single shareholder of Nike, has personally owned and controlled a substantial majority of the NIKE Class A Common Stock since 1980.

You can invest in Nike through mutual funds and ETFs, which hold hundreds of companies' stocks, including Nike. This can help spread out the risk and provide a more stable investment. Many leading index funds and ETFs provide exposure to Nike, such as S&P 500 funds, which invest about 0.5% of their holdings in NKE.

If you want to invest in an index fund with heavier Nike representation, consider a consumer discretionary sector index fund, like the Fidelity Select Consumer Discretionary Portfolio (FSCPX) or Consumer Discretionary Select Sector SPDR Fund (XLY), where NKE is a top holding.

You can buy Nike stock through a brokerage account, such as Fidelity or Robinhood.

Nike's stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol NKE.

Nike's stock price has historically been volatile, with a 52-week high of $73.22 and a 52-week low of $52.84.

To buy Nike stock, you'll need to fund your brokerage account with at least $100.

Nike offers a dividend yield of around 0.8%, which is lower than the S&P 500 average.

Nike's stock has a beta of 0.94, indicating that its price movements are closely tied to the overall market.

Investing in Nike can be a bit tricky due to its high risk level. Experts recommend investing in many companies or buying shares of index funds or ETFs to decrease that risk.

Nike is a major company with decades of proven revenue and stock growth, but investing in any one company can be risky. You can invest in Nike through index funds or ETFs, which hold hundreds of companies' stocks.

Many leading index funds and ETFs provide exposure to Nike, with S&P 500 funds investing about 0.5% of their holdings in NKE. This means you can invest in Nike indirectly through a broader market index.

If you want to invest in an index fund with even heavier Nike representation, consider a consumer discretionary sector index fund, like the Fidelity Select Consumer Discretionary Portfolio (FSCPX) or Consumer Discretionary Select Sector SPDR Fund (XLY), where NKE is a top holding.

Nike's financial performance has been underwhelming, with revenues for the quarter ending in May 2024 sinking by 2% to $12.6 billion.

Direct-to-consumer sales took a hit, dropping by 8% which contributed significantly to the decline.

The company's forecast for fiscal 2025 predicts a mid-single-digit revenue decline, a stark contrast to its previous expectations of incremental growth.

Nike's shares plummeted by 20% following the disappointing earnings call, marking the worst single-day performance since its IPO.

Nike is one of the leading brands in high-end athletic wear and one of the most successful and recognized companies in the retail sector.

Most of its shareholders are institutional investors like pensions and mutual funds, which own a significant portion of the company.

Founder Phil Knight and his family continue to exercise a controlling influence over the board of directors due to the way share classes are structured.

Institutional investors own 66% of the company, making them a dominant force in shaping Nike's direction.

Here's a breakdown of the top institutional shareholders of Nike:

This concentration of ownership gives institutional investors a significant voice in Nike's decision-making process.

Nike's largest single shareholder, PHK, has personally owned and controlled a substantial majority of the NIKE Class A Common Stock since NIKE became a publicly traded company in 1980.

The shares of NIKE Class A Common Stock voting as a separate class generally have the ability to elect 75% of the Board of Directors of NIKE, so long as the Class A Shares represent at least 12.5% of all outstanding voting shares of NIKE.

PHK has agreed to contribute a substantial majority of outstanding shares of NIKE Class A Common Stock to the Company, which shares represent approximately 15% of the outstanding shares of all classes of voting stock of NIKE.

Here are some key facts about NIKE Class A Common Stock: