NIKE, Inc. (NYSE:NKE – Get Free Report) was up 5.3% during mid-day trading on Thursday. The stock traded as high as $37.73 and last traded at $37.1850. Approximately 46,330,478 shares traded hands during mid-day trading, an increase of 87% from the average daily volume of 24,796,975 shares. The stock had previously closed at $35.30.
Key NIKE News
Here are the key news stories impacting NIKE this week:
- Positive Sentiment: Investor rotation away from AI-related stocks lifted Nike and other heavily sold consumer names as traders sought relatively lower-valued opportunities. Nike, Moderna, Walmart Get a Lift as Traders Flee AI Stocks
- Positive Sentiment: Options activity was unusually bullish in volume terms, with traders buying 181,646 call options—about 27% above the typical daily call volume—suggesting increased speculative interest in a rebound. However, options activity does not guarantee sustained buying in the shares.
- Positive Sentiment: Some investors view Nike’s depressed valuation and ongoing turnaround efforts as an opportunity, while management is working to improve the company’s customer value proposition and reshape the business. What’s Going on With Nike Stock?
- Neutral Sentiment: The rally was broad across consumer discretionary stocks, including Lululemon, indicating that Nike’s move may reflect sector-wide bargain hunting rather than company-specific news. Nike Climbs as Beaten-Down Consumer Names Catch a Bid
- Negative Sentiment: Nike’s underlying operating picture remains difficult: the latest quarter showed revenue down about 4% year over year, with Greater China revenue down 22%, while management’s guidance has disappointed investors. Nike Is Down 80% From Its High
- Negative Sentiment: Restructuring reflects efforts to repair the business but also highlights declining sales and rising costs. The turnaround could take time and may pressure profitability before benefits appear. Nike Is Restructuring the Business
- Negative Sentiment: Investors are also questioning the sustainability of Nike’s dividend growth after 24 consecutive annual increases, because free cash flow reportedly no longer fully covers the payout. Nike Has Raised Its Dividend for 24 Straight Years
Wall Street Analysts Forecast Growth
A number of analysts recently weighed in on the stock. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $45.00 price objective on shares of NIKE in a report on Friday, October 2nd. Williams Trading lowered shares of NIKE from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 2nd. HSBC cut their price target on NIKE from $48.00 to $40.00 and set a “hold” rating on the stock in a report on Monday, September 28th. Stifel Nicolaus cut their price target on NIKE from $40.00 to $36.00 and set a “hold” rating on the stock in a report on Friday, October 2nd. Finally, UBS Group reiterated a “neutral” rating and set a $34.00 price objective (down from $42.00) on shares of NIKE in a research report on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty-one have given a Hold rating and ten have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average price target of $41.07.
Read Our Latest Stock Report on NKE
NIKE Trading Up 5.3%
The business’s 50 day moving average price is $37.66 and its two-hundred day moving average price is $41.75. The company has a market capitalization of $55.23 billion, a price-to-earnings ratio of 17.88, a price-to-earnings-growth ratio of 3.99 and a beta of 1.09. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.39 and a current ratio of 2.07.
NIKE (NYSE:NKE – Get Free Report) last posted its quarterly earnings data on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.43 by $0.05. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The business had revenue of $11.21 billion for the quarter, compared to analyst estimates of $11.32 billion. During the same quarter last year, the business earned $0.49 earnings per share. The business’s revenue for the quarter was down 4.3% on a year-over-year basis. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. Equities analysts forecast that NIKE, Inc. will post 1.26 earnings per share for the current fiscal year.
NIKE Dividend Announcement
The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 1st were paid a dividend of $0.41 per share. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $1.64 annualized dividend and a yield of 4.4%. NIKE’s dividend payout ratio (DPR) is currently 78.85%.
Insider Transactions at NIKE
In other news, insider Amy Montagne sold 4,867 shares of the business’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $42.05, for a total transaction of $204,657.35. Following the sale, the insider directly owned 57,436 shares of the company’s stock, valued at $2,415,183.80. The trade was a 7.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Philip McCartney sold 2,559 shares of the company’s 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 completion of the sale, the executive vice president owned 78,121 shares of the company’s stock, valued at approximately $2,936,568.39. This trade represents a 3.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,974 shares of company stock valued at $600,126 in the last three months. 1.10% of the stock is currently owned by insiders.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently modified their holdings of the business. Scarborough Advisors LLC bought a new stake in shares of NIKE in the first quarter valued at about $25,000. Sankala Group LLC bought a new position in NIKE during the fourth quarter valued at about $26,000. Meeder Asset Management Inc. increased its stake in NIKE by 108.4% during the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock valued at $29,000 after acquiring an additional 285 shares during the period. Atlas Wealth LLC acquired a new position in NIKE in the 1st quarter valued at approximately $31,000. Finally, University of Texas Texas AM Investment Management Co. acquired a new position in NIKE in the 2nd quarter valued at approximately $33,000. Hedge funds and other institutional investors own 64.25% of the company’s stock.
About NIKE
NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.
The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.
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