Nike Stock Jumps on CEO Change-Up

CEO John Donahoe is stepping down in October

Nike Inc (NYSE:NKE) inventory is up 5.5% at $85.42 eventually look, after information that CEO John Donahoe is retiring in October and shall be changed by former government Elliott Hill, who’s popping out of retirement for the position after working 32 years on the firm. Donahoe’s stint on the helm has been rocky, and buyers are optimistic in regards to the change. 

The inventory has but to recuperate from June 28, when it dropped 22.4% for its worst day ever after blended earnings outcomes and a steerage warning. Nonetheless, as we speak’s pop has the shares pushing nearer to $93, the place they resided earlier than the bear hole. Yr up to now, the fairness is down 21.3%. 

Choices bulls are chiming in on the thrill, with 111,000 calls exchanged to this point compared to 58,000 places. Total, NKE has already seen greater than double its common day by day choices quantity. Expiring on the finish of the day, the September 85 name is the most well-liked by far, the place new positions are opening. 

A number of analysts raised their worth targets on Nike inventory as we speak as nicely, citing the constructive change. The 12-month consensus worth goal of $92.25 is a slim 7.8% premium to present ranges, so extra bull notes may very well be on the best way if the inventory continues to rise on the charts.