NIKE (NYSE:NKE) Given New $40.00 Price Target at HSBC

NIKE (NYSE:NKE) had its price objective lowered by HSBC from $48.00 to $40.00 in a report released on Monday morning, Marketbeat reports. The brokerage currently has a hold rating on the footwear maker’s stock.

A number of other research analysts also recently commented on the stock. BNP Paribas Exane reaffirmed an “underperform” rating on shares of NIKE in a report on Wednesday, July 22nd. Telsey Advisory Group set a $44.00 price target on NIKE and gave the company a “market perform” rating in a report on Tuesday, September 15th. Royal Bank Of Canada reiterated a “neutral” rating on shares of NIKE in a research report on Tuesday, September 22nd. BTIG Research restated a “buy” rating and issued a $55.00 target price on shares of NIKE in a report on Wednesday, September 23rd. Finally, Rothschild & Co Redburn cut their price target on shares of NIKE from $45.00 to $37.00 and set a “sell” rating on the stock in a report on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty-one have assigned a Hold rating and seven have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $46.77.

NIKE Price Performance

NYSE:NKE opened at $36.40 on Monday. The company has a market capitalization of $53.99 billion, a P/E ratio of 17.41, a P/E/G ratio of 1.84 and a beta of 1.10. NIKE has a 12 month low of $35.22 and a 12 month high of $76.97. The business’s 50-day moving average is $39.44 and its 200 day moving average is $43.34. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40.

NIKE (NYSE:NKE) last posted its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.09. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The firm had revenue of $10.97 billion during the quarter, compared to the consensus estimate of $10.85 billion. During the same period in the prior year, the company earned $0.14 EPS. The company’s quarterly revenue was down 1.1% compared to the same quarter last year. On average, equities research analysts forecast that NIKE will post 1.66 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date is Tuesday, September 1st. NIKE’s dividend payout ratio is currently 78.47%.

Insider Activity at NIKE

In other NIKE news, EVP Philip McCartney sold 2,559 shares of the firm’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total transaction of $96,192.81. Following the transaction, the executive vice president directly owned 78,121 shares in the company, valued at $2,936,568.39. This trade represents a 3.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of NIKE stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $102,460.80. Following the sale, the chief financial officer directly owned 82,165 shares of the company’s stock, valued at approximately $3,418,064. This trade represents a 2.91% decrease in their ownership of the stock. 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 three months, insiders sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. State Street Corp lifted its position in shares of NIKE by 6.8% in the 2nd quarter. State Street Corp now owns 63,598,789 shares of the footwear maker’s stock worth $2,636,104,000 after purchasing an additional 4,052,428 shares during the period. Capital World Investors increased its holdings in NIKE by 16.2% during the fourth quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker’s stock valued at $3,126,246,000 after buying an additional 6,830,938 shares during the period. J. Stern & Co. LLP raised its stake in NIKE by 49,010.4% in the fourth quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker’s stock worth $3,061,555,000 after buying an additional 47,956,692 shares in the last quarter. Flossbach Von Storch SE purchased a new stake in NIKE during the second quarter worth $488,714,000. Finally, Janus Henderson Group PLC lifted its holdings in NIKE by 12.5% during the fourth quarter. Janus Henderson Group PLC now owns 7,887,609 shares of the footwear maker’s stock worth $502,537,000 after buying an additional 874,662 shares during the period. Hedge funds and other institutional investors own 64.25% of the company’s stock.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Potential earnings improvement: Jefferies expects Nike to deliver a first-quarter beat, citing stabilization in North America and wholesale, healthier inventories, and earlier gross-margin expansion. Nike set for Q1 beat as margins improve, Jefferies says
• Positive Sentiment: Options market remains constructive: Options traders are reportedly bullish heading into the earnings release, suggesting some investors expect a favorable post-earnings move. Ahead of Nike Earnings, Here’s What Barchart Data Says Comes Next for NKE Stock
• Positive Sentiment: Brand-building expertise added to the board: Nike appointed Alexandre Arnault, a senior LVMH executive, bringing additional European consumer-market and luxury-brand experience to its governance team. Nike Brings Alexandre Arnault Onto Its Board
• Neutral Sentiment: Turnaround depends on product innovation: Nike is relying on new footwear launches and its Sport Offense strategy to rebuild sportswear momentum, but digital weakness and promotional activity remain obstacles. Will New Footwear Launches Help NIKE Rebuild Sportswear Momentum?
• Neutral Sentiment: Earnings are the key near-term catalyst: Investors are looking for management to provide evidence that North America, China, wholesale demand, margins, and inventory trends are improving. Retail investors are largely holding their positions ahead of the report.
• Negative Sentiment: Analyst sentiment has deteriorated: Evercore cut its price target to $34, HSBC to $40, Deutsche Bank to $37, Goldman Sachs to $38, and Piper Sandler moved to Neutral with a $38 target. The revisions reflect expectations for a slower recovery and heavier promotions.
• Negative Sentiment: China and the broader turnaround remain major risks: Nike’s once-important China business is weakening, with sales reportedly down 12% in the latest quarter. Analysts warn that brand rebuilding, innovation, and recovery may take longer than expected, raising the risk of another negative earnings reset. Nike stock is near a 12-year low

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.