NIKE (NYSE:NKE – Get Free Report) was upgraded by equities researchers at BMO Capital Markets to a “strong sell” rating in a research report issued on Tuesday, Zacks reports.
A number of other research firms have also weighed in on NKE. Barclays decreased their target price on NIKE from $67.00 to $52.00 and set an “overweight” rating on the stock in a report on Wednesday, July 1st. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $68.00 price objective (down from $72.00) on shares of NIKE in a research report on Wednesday, July 29th. Stifel Nicolaus set a $45.00 price objective on shares of NIKE and gave the company a “hold” rating in a research report on Wednesday, July 1st. BNP Paribas Exane restated an “underperform” rating on shares of NIKE in a research note on Wednesday, July 22nd. Finally, Jefferies Financial Group restated a “buy” rating on shares of NIKE in a research note on Tuesday, August 25th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, twenty have given a Hold rating and six have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $50.12.
Get Our Latest Analysis on NIKE
NIKE Stock Performance
NIKE (NYSE:NKE – Get Free Report) last issued its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The company had revenue of $10.97 billion for the quarter, compared to analysts’ expectations of $10.85 billion. During the same period in the prior year, the firm earned $0.14 EPS. NIKE’s quarterly revenue was down 1.1% compared to the same quarter last year. As a group, equities analysts forecast that NIKE will post 1.74 earnings per share for the current year.
Insider Buying and Selling at NIKE
In other NIKE news, EVP Philip McCartney sold 2,559 shares of the stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total transaction of $96,192.81. Following the transaction, the executive vice president owned 78,121 shares in the company, valued at $2,936,568.39. This represents a 3.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total transaction of $102,460.80. Following the transaction, the chief financial officer directly owned 82,165 shares in the company, valued at $3,418,064. This represents a 2.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 14,974 shares of company stock worth $600,126. 1.10% of the stock is currently owned by company insiders.
Institutional Trading of NIKE
Large investors have recently modified their holdings of the stock. The Manufacturers Life Insurance Company increased its position in shares of NIKE by 1.9% in the second quarter. The Manufacturers Life Insurance Company now owns 640,889 shares of the footwear maker’s stock worth $26,308,000 after purchasing an additional 11,884 shares during the period. MCF Advisors LLC raised its stake in NIKE by 48.4% in the second quarter. MCF Advisors LLC now owns 25,663 shares of the footwear maker’s stock valued at $1,060,000 after purchasing an additional 8,370 shares in the last quarter. National Pension Service lifted its position in NIKE by 8.7% during the second quarter. National Pension Service now owns 3,088,640 shares of the footwear maker’s stock worth $126,789,000 after purchasing an additional 247,230 shares during the period. WINTON GROUP Ltd grew its stake in NIKE by 63.0% during the second quarter. WINTON GROUP Ltd now owns 43,923 shares of the footwear maker’s stock worth $1,803,000 after buying an additional 16,978 shares in the last quarter. Finally, Cidel Asset Management Inc. grew its stake in NIKE by 33.4% during the second quarter. Cidel Asset Management Inc. now owns 15,948 shares of the footwear maker’s stock worth $655,000 after buying an additional 3,995 shares in the last quarter. 64.25% of the stock is owned by institutional investors and hedge funds.
NIKE News Roundup
Here are the key news stories impacting NIKE this week:
- Neutral Sentiment: Shareholders approved an expanded employee stock purchase plan adopted by NIKE’s board in July. The plan could support employee retention, although the potential for additional share issuance may limit its benefit to existing investors. Nike Shareholders Approve Expanded Employee Stock Purchase Plan
- Neutral Sentiment: Some commentary argues that NIKE’s underlying business is not fundamentally broken and that its depressed valuation and dividend yield could appeal to long-term investors, though a turnaround remains necessary. Nike: The Sentiment Is Bleak, But The Underlying Business Is Not Broken
- Negative Sentiment: Morgan Stanley warned that the pain may not be over, citing persistent operating weakness, disappointing share performance and NIKE’s imminent removal from the S&P 100. Morgan Stanley Says the Pain May Not Be Over Yet
- Negative Sentiment: BMO initiated coverage with an Underperform rating, pointing to challenges facing NIKE and the broader athletic-apparel market. The new bearish call adds to pressure on the stock. BMO Says Sell Nike Stock
- Negative Sentiment: NIKE is set to lose its S&P 100 membership after nearly 18 years, a high-profile consequence of its severe decline that could reduce index-related demand and reinforce negative sentiment. Nike Loses Its S&P 100 Membership
- Negative Sentiment: Analysts continue to cite shifting consumer preferences, intense competition and NIKE’s broad product and market exposure as structural challenges, leaving investors concerned that a recovery could take time. Shifting Consumer Preferences Continue to Impact Nike and Lululemon
About NIKE
NIKE, Inc is a global athletic footwear, apparel and equipment company headquartered near Beaverton, Oregon. The company designs, develops and markets products under the NIKE, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.
NIKE’s offerings include athletic and casual footwear, sportswear, apparel, accessories and athletic equipment. The company distributes its products through company-owned retail stores, digital platforms, wholesale partners and independent distributors.
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