Wall Street Zen lowered shares of NIKE (NYSE:NKE – Free Report) from a hold rating to a sell rating in a research note issued to investors on Saturday morning.
Other research analysts also recently issued research reports about the stock. The Goldman Sachs Group reissued a “neutral” rating and set a $52.00 target price (down from $76.00) on shares of NIKE in a research report on Wednesday, April 1st. HSBC downgraded shares of NIKE from a “buy” rating to a “hold” rating and cut their target price for the company from $90.00 to $48.00 in a research report on Monday, April 13th. Piper Sandler reissued a “neutral” rating and set a $50.00 target price (down from $60.00) on shares of NIKE in a research report on Friday, April 10th. DZ Bank reissued a “buy” rating on shares of NIKE in a research report on Thursday, April 2nd. Finally, Jefferies Financial Group cut their target price on shares of NIKE from $110.00 to $90.00 and set a “buy” rating on the stock in a research report on Wednesday, April 1st. Seventeen equities research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, NIKE has a consensus rating of “Hold” and an average target price of $62.34.
NIKE Trading Up 1.0%
NIKE (NYSE:NKE – Get Free Report) last posted its earnings results on Tuesday, March 31st. The footwear maker reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.29 by $0.06. The business had revenue of $11.28 billion for the quarter, compared to the consensus estimate of $11.23 billion. NIKE had a net margin of 4.84% and a return on equity of 16.41%. The company’s revenue for the quarter was up .1% on a year-over-year basis. During the same quarter last year, the firm posted $0.54 EPS. Equities analysts forecast that NIKE will post 1.52 EPS for the current fiscal year.
NIKE Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Monday, March 2nd were given a $0.41 dividend. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $1.64 dividend on an annualized basis and a dividend yield of 3.5%. NIKE’s payout ratio is presently 108.61%.
Insider Activity
In other news, Director Robert Holmes Swan acquired 11,781 shares of the business’s stock in a transaction dated Tuesday, April 7th. The shares were purchased at an average price of $42.44 per share, with a total value of $499,985.64. Following the transaction, the director directly owned 55,074 shares in the company, valued at approximately $2,337,340.56. This represents a 27.21% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Elliott Hill acquired 23,660 shares of the business’s stock in a transaction dated Monday, April 13th. The stock was purchased at an average cost of $42.27 per share, for a total transaction of $1,000,108.20. Following the transaction, the chief executive officer owned 265,247 shares in the company, valued at approximately $11,211,990.69. The trade was a 9.79% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought 64,441 shares of company stock worth $2,734,204 in the last quarter. 0.80% of the stock is currently owned by corporate insiders.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in NIKE by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 116,993,541 shares of the footwear maker’s stock worth $7,453,658,000 after purchasing an additional 1,702,342 shares in the last quarter. State Street Corp boosted its stake in NIKE by 2.2% in the 4th quarter. State Street Corp now owns 59,315,606 shares of the footwear maker’s stock worth $3,802,807,000 after purchasing an additional 1,275,494 shares in the last quarter. Capital World Investors boosted its stake in NIKE by 16.2% in the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker’s stock worth $3,126,246,000 after purchasing an additional 6,830,938 shares in the last quarter. J. Stern & Co. LLP boosted its stake in NIKE by 49,010.4% in the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker’s stock worth $3,061,555,000 after purchasing an additional 47,956,692 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in NIKE by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker’s stock worth $1,677,251,000 after purchasing an additional 233,925 shares in the last quarter. Hedge funds and other institutional investors own 64.25% of the company’s stock.
Key Stories Impacting NIKE
Here are the key news stories impacting NIKE this week:
- Positive Sentiment: Company insiders, including the CEO, have recently bought shares — a sign of management confidence that has provided near-term support for the stock. Insider Trades: Nike Sees More CEO Buys, Aehr Sold on 300% Gain
- Positive Sentiment: Multiple outlets highlighted sizable insider purchases as a vote of confidence; that coverage helped lift the stock in short-term trading. Nike Insiders Bet Big on the Stock — Should You Follow?
- Neutral Sentiment: Feature pieces outline a potential multi-year turnaround: Nike is seen as cheaply valued by some long-term investors, but recovery will take time and execution. Just Fix It: Nike’s stock is down 70% — but there’s hope for a comeback
- Neutral Sentiment: Analyst and editorial takes underscore that Nike could be a value play if management proves demand and margin stabilization. Nike Looks Cheap, But You Have to Believe the Shoemaker can “Just Do It”
- Neutral Sentiment: S&P Global’s forecast reset highlights scale and strategy but says proof of sustainable demand/profits is still missing — a mixed signal for investors weighing long-term upside vs execution risk. S&P Global resets Nike’s stock forecast
- Negative Sentiment: Inventory cleanup is underway, but heavy discounting and poor product mix continue to pressure margins; analysts say profitability hasn’t meaningfully rebounded yet. Are NIKE’s Inventory Fixes Boosting Global Profitability Yet? Are NIKE’s Inventory Fixes Boosting Global Profitability Yet? (Zacks)
- Negative Sentiment: Columnists and analysts are raising the possibility of a dividend cut if margins don’t recover, creating concern about cash returns to shareholders. Is a Dividend Cut Inevitable for Nike?
- Negative Sentiment: High-profile skeptics (e.g., Jim Cramer) and negative opinion pieces warn the turnaround isn’t yet convincing, which can sap investor enthusiasm. Jim Cramer Isn’t Convinced About Nike’s (NKE) Turnaround Nike: Please Just Don’t Do It
- Negative Sentiment: Brand risk: a local Boston ad sparked backlash and a quick removal/apology, reminding investors that marketing missteps can amplify reputational concerns during a turnaround. Nike Boston Ad Backlash Raises Fresh Questions For Brand And Investors
About NIKE
Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.
The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).
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