NIKE (NYSE:NKE – Get Free Report) had its price objective lowered by Royal Bank Of Canada from $45.00 to $40.00 in a research report issued on Tuesday, Benzinga reports. The brokerage presently has a “sector perform” rating on the footwear maker’s stock. Royal Bank Of Canada’s target price would indicate a potential upside of 9.90% from the stock’s previous close.
Several other equities research analysts also recently weighed in on NKE. Stifel Nicolaus set a $40.00 target price on NIKE and gave the stock a “hold” rating in a research report on Monday, September 21st. The Goldman Sachs Group dropped their target price on NIKE from $42.00 to $38.00 and set a “neutral” rating on the stock in a report on Friday. BNP Paribas Exane reissued an “underperform” rating on shares of NIKE in a research report on Wednesday, July 22nd. Barclays restated an “overweight” rating and issued a $48.00 price target (down from $52.00) on shares of NIKE in a report on Wednesday, September 23rd. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of NIKE in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty-one have given a Hold rating and seven have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $46.62.
Read Our Latest Research Report on NKE
NIKE Stock Performance
NIKE (NYSE:NKE – Get Free Report) last announced its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate 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 firm earned $0.14 EPS. The firm’s quarterly revenue was down 1.1% compared to the same quarter last year. As a group, equities research analysts expect that NIKE will post 1.66 earnings per share for the current fiscal year.
Insiders Place Their Bets
In other NIKE news, 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 completion of the sale, the chief financial officer owned 82,165 shares in the company, valued at $3,418,064. This trade represents a 2.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of NIKE stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $42.05, for a total value of $204,657.35. Following the sale, the insider owned 57,436 shares in the company, valued at $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 14,974 shares of company stock worth $600,126. Company insiders own 1.10% of the company’s stock.
Institutional Inflows and Outflows
A number of large investors have recently added to or reduced their stakes in the stock. QRG Capital Management Inc. raised its stake in shares of NIKE by 8.5% in the 2nd quarter. QRG Capital Management Inc. now owns 106,883 shares of the footwear maker’s stock valued at $4,388,000 after purchasing an additional 8,338 shares in the last quarter. Envestnet Portfolio Solutions Inc. grew its stake in NIKE by 214.0% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 32,596 shares of the footwear maker’s stock worth $1,338,000 after purchasing an additional 22,215 shares in the last quarter. Envestnet Asset Management Inc. grew its stake in NIKE by 98.4% in the second quarter. Envestnet Asset Management Inc. now owns 2,202,581 shares of the footwear maker’s stock worth $90,416,000 after purchasing an additional 1,092,282 shares in the last quarter. State Street Corp increased its holdings in NIKE by 6.8% in the second quarter. State Street Corp now owns 63,598,789 shares of the footwear maker’s stock valued at $2,636,104,000 after buying an additional 4,052,428 shares during the last quarter. Finally, The Manufacturers Life Insurance Company increased its holdings in NIKE by 1.9% in the second quarter. The Manufacturers Life Insurance Company now owns 640,889 shares of the footwear maker’s stock valued at $26,308,000 after buying an additional 11,884 shares during the last quarter. 64.25% of the stock is currently owned by institutional investors.
Key Stories Impacting NIKE
Here are the key news stories impacting NIKE this week:
- Positive Sentiment: Jefferies expects a potential first-quarter earnings beat, citing stabilization in North America and wholesale, better inventory positioning and earlier-than-expected gross-margin expansion. Nike set for Q1 beat as margins improve, Jefferies says
- Positive Sentiment: New footwear launches and Nike’s “Sport Offense” strategy could help rebuild Sportswear momentum, although the payoff may take time. Will New Footwear Launches Help NIKE Rebuild Sportswear Momentum?
- Positive Sentiment: Options traders remain relatively bullish ahead of the earnings release, while some analysts argue the depressed valuation already reflects significant turnaround risks. Ahead of Nike Earnings, Here’s What Barchart Data Says Comes Next for NKE Stock
- Neutral Sentiment: Nike appointed Alexandre Arnault of LVMH to its board, adding luxury-brand and European consumer-market experience, but the financial impact is uncertain. Nike Brings Alexandre Arnault Onto Its Board
- Negative Sentiment: Analysts are lowering expectations before earnings. Piper Sandler moved to Neutral with a $38 target, while Evercore cut its target to $34, Deutsche Bank to $37 and HSBC to $40. The revisions reflect a slower recovery and tougher promotional conditions.
- Negative Sentiment: China remains a major weakness, with demand deteriorating and sales previously falling 12%; retailer order reductions are adding to concerns about near-term revenue. Nike Stock Hovers Near Annual Lows Amid Wave of Analyst Downgrades
- Negative Sentiment: Investors worry Nike’s shift away from direct-to-consumer sales is compressing margins, while e-commerce and social-media competition have weakened its traditional brand and shelf-space advantages. Nike’s Win Now Plan Is For Patient Investors Willing To Win Later
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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