CEO John Donahoe is stepping down in October
Nike Inc (NYSE:NKE) stock is up 5.5% at $85.42 at last glance, after news that CEO John Donahoe is retiring in October and will be replaced by former executive Elliott Hill, who is coming out of retirement for the role after working 32 years at the company. Donahoe's stint at the helm has been rocky, and investors are optimistic about the change.
The stock has yet to recover from June 28, when it dropped 22.4% for its worst day ever after mixed earnings results and a guidance warning. Still, today's pop has the shares pushing closer to $93, where they resided before the bear gap. Year to date, the equity is down 21.3%.
Options bulls are chiming in on the buzz, with 111,000 calls exchanged so far in comparison to 58,000 puts. Overall, NKE has already seen more than double its average daily options volume. Expiring at the end of the day, the September 85 call is the most popular by far, where new positions are opening.
Several analysts raised their price targets on Nike stock today as well, citing the positive change. The 12-month consensus price target of $92.25 is a slim 7.8% premium to current levels, so more bull notes could be on the way if the stock continues to rise on the charts.