Nike shares close lower on Tuesday, company pulls shoes featuring “Betsy Ross” flag following Kaepernick complaint

According to a report by the Wall Street Journal, citing sources with knowledge of the matter, Nike Inc (NKE) is to pull sneakers that feature an early American flag, after Colin Kaepernick, former NFL football player, contacted the company saying it was inappropriate to sell a shoe considered offensive by him and others.

Nike shares closed lower for the fifth time in the past eleven trading sessions in New York on Tuesday. The stock went down 0.53% ($0.45) to $84.96, after touching an intraday low at $84.22, or a price level not seen since June 28th ($82.67).

Shares of Nike Inc have risen 14.59% so far in 2019 compared with an 18.60% gain for the benchmark index, S&P 500 (SPX).

In 2018, Nike Inc’s stock went up 18.53%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

In a complaint, Kaepernick told Nike officials that the “Betsy Ross” flag, which has 13 stars in a circle and is visualized on the backside of the sneakers, was associated with a period of slavery in the American history.

Following that complaint, the athletic apparel maker requested that retailers returned the sneakers after they had been shipped. The shoes are no longer available on the companys apps and websites.

“Nike has chosen not to release the Air Max 1 Quick Strike Fourth of July as it featured an old version of the American flag,” Nike Inc said in a statement, cited by CNBC.

According to CNN Money, the 27 analysts, offering 12-month forecasts regarding Nike Incs stock price, have a median target of $96.00, with a high estimate of $103.00 and a low estimate of $70.00. The median estimate represents a 12.99% upside compared to the closing price of $84.96 on July 2nd.

The same media also reported that 20 out of 30 surveyed investment analysts had rated Nike Incs stock as “Buy”, while 6 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Nike Inc (NKE) are presented as follows:

Central Pivot Point – $84.32
R1 – $86.48
R2 – $89.01
R3 – $91.17
R4 – $93.33

S1 – $81.79
S2 – $79.63
S3 – $77.10
S4 – $74.57