Nike's 2-1 Stock Split Is Now In Effect

Nike Inc NKE stock split is now in play for the Dow Jones Industrial Average. Shares hit an all-time high this week, but recently traded at $62.91, down 2.2 percent on the day.

Nike became one of the DJI's best-performing stock after the company delivered second-quarter fiscal 2016 earnings results that beat Wall Street estimates.

Time Seymour also is enthusiastic about Nike's growth potential.

Seymour believes in not selling Nike stock. He expressed that recent analyst upgrades and a large volume on Wednesday are positive signs for Nike.

With the stock split, Nike will increase its number of outstanding shares while at the same time, lower the price. This makes the stock more favorable to smaller investors looking to own Nike.

The global athletic footwear giant's shares have significantly been higher, up to 37 percent in 2015, thanks to Nike's profit margin improvements, and higher-than-expected second-quarter demand in both apparel and footwear.

Nike announced last month that its board of directors approved the $12 billion, four-year buyback plan.

Shares of the athletic apparel and footwear retailer were up more than 5 percent in November after it approved a 2-for-1 stock split of both its class A and class B common shares.

Nike's 2-1 stock split lowered the company's weighting in the blue-chip index and the consumer discretionary sector last November. Nike's quarterly dividend was also raised, by 14 percent to $0.32 per share.