NIKE, Inc. (NYSE:NKE – Get Free Report)’s stock price shot up 1.8% on Monday. The stock traded as high as $35.35 and last traded at $35.3210. 23,052,507 shares were traded during mid-day trading, a decline of 7% from the average daily volume of 24,683,068 shares. The stock had previously closed at $34.71.
NIKE News Roundup
Here are the key news stories impacting NIKE this week:
- Positive Sentiment: Management is attempting to improve Nike’s customer value proposition as part of its broader strategic reset, which could support demand and profitability if the initiatives succeed. What’s Going on With Nike Stock?
- Neutral Sentiment: From a valuation perspective, Nike is being discussed as a potentially undervalued footwear and apparel stock. However, comparisons with Carter’s suggest investors are weighing Nike’s lower valuation against its weaker near-term operating outlook. CRI vs. NKE: Which Stock Is the Better Value Option?
- Negative Sentiment: Nike’s latest fiscal-quarter revenue fell about 4% year over year, while Greater China revenue declined 22%. The top-line pressure makes it more difficult for the company to expand earnings, despite quarterly EPS exceeding analysts’ expectations. Nike Is Down 80% From Its High. Here’s the Only Number That Matters.
- Negative Sentiment: Disappointing forward guidance has added to bearish sentiment. Investors are concerned that Nike’s recovery may take longer than expected, with commentary suggesting that operating conditions could worsen before improving. Why Is Everyone Talking About Nike Stock?
- Negative Sentiment: Bank of America downgraded Nike to Underperform after the latest results, reversing its earlier view that the stock already reflected the negative news. The downgrade reinforces concerns about prolonged revenue weakness and execution risk. BofA Turns Bearish on Nike: What’s Behind the Downgrade?
Analysts Set New Price Targets
Several research firms have issued reports on NKE. Barclays set a $37.00 price target on shares of NIKE and gave the stock an “overweight” rating in a research report on Monday, October 5th. BMO Capital Markets reiterated an “underperform” rating and issued a $25.00 price target on shares of NIKE in a research note on Friday, October 2nd. CICC Research decreased their price objective on shares of NIKE from $58.00 to $44.80 and set a “neutral” rating for the company in a research report on Thursday, July 2nd. Rothschild & Co Redburn lowered their price objective on shares of NIKE from $45.00 to $37.00 and set a “sell” rating on the stock in a research note on Friday, July 17th. Finally, Weiss Ratings cut shares of NIKE from a “sell (d+)” rating to a “sell (d)” rating in a report on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twenty-one have issued a Hold rating and ten have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of $41.07.
NIKE Trading Down 0.1%
The business has a 50 day moving average of $37.81 and a two-hundred day moving average of $41.87. The firm has a market cap of $52.42 billion, a P/E ratio of 16.97, a PEG ratio of 3.11 and a beta of 1.09. The company has a current ratio of 2.07, a quick ratio of 1.39 and a debt-to-equity ratio of 0.39.
NIKE (NYSE:NKE – Get Free Report) last released its quarterly earnings data on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.05. The firm had revenue of $11.21 billion during the quarter, compared to analysts’ expectations of $11.32 billion. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The company’s revenue for the quarter was down 4.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.49 earnings per share. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. Analysts predict that NIKE, Inc. will post 1.26 earnings per share for the current year.
NIKE Announces Dividend
The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st were paid a dividend of $0.41 per share. The ex-dividend date was Tuesday, September 1st. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.6%. NIKE’s dividend payout ratio (DPR) is 78.85%.
Insider Transactions at NIKE
In other NIKE news, insider Amy Montagne sold 4,867 shares of the 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 transaction, the insider owned 57,436 shares in the company, valued at $2,415,183.80. This trade represents a 7.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Matthew Friend sold 2,463 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the transaction, the chief financial officer owned 82,165 shares in the company, valued at $3,418,064. The trade was a 2.91% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On NIKE
Several institutional investors and hedge funds have recently modified their holdings of NKE. OMERS ADMINISTRATION Corp increased its stake in NIKE by 77.9% in the fourth quarter. OMERS ADMINISTRATION Corp now owns 2,526,179 shares of the footwear maker’s stock valued at $160,943,000 after acquiring an additional 1,106,499 shares during the last quarter. OneDigital Investment Advisors LLC lifted its stake in NIKE by 32.8% during the second quarter. OneDigital Investment Advisors LLC now owns 244,296 shares of the footwear maker’s stock worth $10,028,000 after purchasing an additional 60,375 shares during the last quarter. Douglas Lane & Associates LLC lifted its stake in NIKE by 57.7% during the third quarter. Douglas Lane & Associates LLC now owns 1,521,611 shares of the footwear maker’s stock worth $53,865,000 after purchasing an additional 556,798 shares during the last quarter. Quantitative Investment Management LLC bought a new stake in NIKE during the second quarter worth $2,459,000. Finally, Deutsche Bank AG boosted its holdings in shares of NIKE by 8.0% in the 2nd quarter. Deutsche Bank AG now owns 3,566,634 shares of the footwear maker’s stock valued at $146,410,000 after purchasing an additional 264,576 shares in the last quarter. 64.25% of the stock is currently owned by institutional investors and hedge funds.
NIKE Company Profile
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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