Chipotle Mexican Grill Fell, Nike Rose 5.5% after Corporate Action

Top and bottom stocks

Stocks at the top of the SPDR S&P 500 ETF (SPY) on November 20 were Ross Stores (ROST), Gap Inc. (GPS), and Intuit (INTU). These stocks gained 10.0%, 7.5%, and 5.9%, respectively, on the day.

The stocks at the bottom of SPY on the day were Chipotle Mexican Grill (CMG), Southwestern Energy (SWN), and Allegheny Technologies (ATI). These stocks yielded -12.3%, -7.6%, and -7.2%, respectively, on November 20.

Chipotle Mexican Grill’s stock plunged after restaurants in six states were identified as a likely source of an E.coli outbreak, according to the Centers for Disease Control and Prevention (or CDC). Southwestern Energy’s stock fell due to declining oil prices, and Allegheny Technologies’ stock price target decreased from $25.00 to $21.83.

Chipotle Mexican Grill Fell, Nike Rose 5.5% after Corporate Action

Nike gains on dividend rise, stock split, and share buyback

The above graph compares the stock price performances of Nike (NKE) and its competitor Foot Locker (FL) since October 2015. Both companies are athletic shoe and apparel retailers.

Nike (NKE) rose 5.5% on the day after the company’s management approved $12 billion in share buybacks. The company also increased its dividend for the quarter by 14% and unveiled a two-for-one stock split.

NKE settled at $132.65 on November 20, well above its 100-day, 50-day, and 20-day moving averages. Its 100-day, 50-day, and 20-day moving averages are $119, $125, and $129, respectively. Analysts set the stock’s price target at $141.50, indicating an upward potential. The trailing one-year return of the stock as of November 20 was 36.2%. Nike’s trading volume soared to 9,532,375 stocks from 4,278,781 stocks on the previous day, after the company announced its corporate events.

Nike garnered 26 “buy” and six “hold” recommendations. NKE did not receive any “sell” recommendations. Standard & Poor’s rated the stock as AA- with a “stable” outlook.

In the final article in this series, we’ll look at the UK stock market as of November 20, 2015.