Nike shares are down more than 1% today, despite the athletic giant's announcement that it's boosting its quarterly dividend from 18.5 cents to 23 cents. The boosted dividend payment is available to shareholders of record as of December 10. The footwear titan currently has about 498.7 million shares outstanding, and about 3% of that has been sold short.
In other Nike news, the firm recently divested itself of its Starter brand, selling the down-market label to Iconix for $60 million. The move represents the end of Nike's partnership with Wal-Mart Stores (WMT), which was a key Starter distributor, as NKE attempts to refocus its business toward higher price-point markets. Meanwhile, NKE suffered its own Chinese-goods recall earlier this month, when 235,000 football helmet chinstraps had to be recalled after they were found to be susceptible to breakage.
The shares of Nike have recently found support from their 10-week moving average, which is helping NKE to combat some resistance at the 64 level. The stock is also fighting overhead pressure from its descending 10-day moving average, which could compound its short-term struggle. Short sellers are betting the shares will decline; short interest jumped by nearly 37% during the latest reporting period.