Nike Inc (NKE) Signs Lifetime Deal With Lebron James – What’s The Total Value?

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Nike Inc (NYSE:NKE) has just announced that they have signed a lifetime advertising deal with Cleveland Cavaliers star Lebron James. At this point in time the terms of the deal have yet to sneak out, however you can be assured that it’s in the hundreds of millions of dollars, if not billions.

We all know that Michael Jordan has made hundreds of millions of dollars selling shoes for Nike Inc (NYSE:NKE), and recently Kevin Durrant signed a deal worth $30 million a year. According to an undisclosed source this deal is worth “multiple times” that. Considering the fact that Lebron has sold $340 million in shoes for Nike over the last year, this deal could approach $1 billion over his Lifetime, if not greater. The stock decreased 0.29% or $0.38 during the last trading session, hitting $131.63. Approximately 2.49 million shares traded hands. NKE shares have risen 31.24% since May 4, 2015 and are currently uptrending. It has outperformed the S&P500 by 32.32%.

From a total of 25 analysts covering Nike Inc. (NYSE:NKE) stock, 21 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 84% of the ratings are positive. The highest target price is $150.0 while the lowest target price is $109.0. The mean of all analyst targets is $137.54 which is 4.49% above today’s ($131.63) stock price. Nike Inc. was the topic of 43 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. Goldman Sachs downgraded shares on December 2 to a “Buy” rating. S&P Research maintained shares with a”Buy” rating and a $136 target share price in their report from a September 28. BB&T Capital upgraded NKE stock in a recent report from October 19 to a “Buy” rating. Credit Suisse maintained the rating on September 25. Credit Suisse has a “Outperform” rating and a $126 price target on shares. Finally, Argus Research maintained the stock with a “Buy” rating in a report they issued on an October 16.

The institutional sentiment increased to 1.05 in Q2 2015. It’s up 0.06, from 0.99 in 2015Q1. The ratio improved, as 37 funds sold all their Nike Inc shares they owned while 432 reduced their positions. 123 funds bought stakes while 368 increased their total positions. Institutions now own 547.84 million shares which is 11.65% less than the previous share count of 620.05 million in 2015Q1.

Mcdonald Capital Investors Inc Ca holds 14.73% of its total portfolio in Nike Inc, equating to 1.39 million shares. Mader & Shannon Wealth Management Inc. owns 92,098 shares representing 11.36% of their total US portfolio. Moreover, Jasper Ridge Partners L.P. has 8.77% of their total portfolio invested in the company, equating to 1.17 million shares. The United Kingdom-based Lansdowne Partners (Uk) Llp has a total of 7.69% of their portfolio invested in the stock. Polen Capital Management Llc, a Florida-based fund reported 3.38 million shares owned.

Since March 6, 2015, the stock had 0 buys, and 18 sales for a total of $114.43 million in net activity. Sprunk Eric D sold 91,282 shares worth $12.09 million. Jackson Jeanne P sold 12,500 shares worth $1.60M. Cook Timothy D sold 8,000 shares worth $996,722. Krane Hilary K sold 25,000 shares worth $3.13M. The insider Slusher John F sold 28,000 shares worth $3.41M.

NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The company has a market cap of $112.77 billion. The Firm sells its products to retail accounts, through NIKE-owned retail stores and Internet Websites , and through a mix of independent distributors and licensees throughout the world. It has 33.23 P/E ratio. The Firm focuses its NIKE Brand product offerings in eight key categories: Running, Basketball, Football (Soccer), Men’s Training, Women’s Training, Action Sports, Sportswear (the Company’s sports-inspired lifestyle products) and Golf.

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