NIKE (NYSE:NKE) Sees Strong Trading Volume on Insider Buying Activity

NIKE, Inc. (NYSE:NKE) saw unusually-strong trading volume on Wednesday following insider buying activity. Approximately 14,859,151 shares were traded during trading, a decline of 10% from the previous session’s volume of 16,465,594 shares.The stock last traded at $60.20 and had previously closed at $57.34.

Specifically, Director Robert Holmes Swan bought 8,691 shares of the firm’s stock in a transaction on Monday, December 22nd. The stock was acquired at an average cost of $57.54 per share, with a total value of $500,080.14. Following the transaction, the director directly owned 43,293 shares in the company, valued at approximately $2,491,079.22. This trade represents a 25.12% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Timothy D. Cook bought 50,000 shares of the business’s stock in a transaction on Monday, December 22nd. The shares were acquired at an average cost of $58.97 per share, for a total transaction of $2,948,500.00. Following the transaction, the director directly owned 105,480 shares in the company, valued at approximately $6,220,155.60. This trade represents a 90.12% increase in their position. The SEC filing for this purchase provides additional information.

Wall Street Analysts Forecast Growth

Several research firms have commented on NKE. Wells Fargo & Company set a $65.00 price target on shares of NIKE and gave the company an “overweight” rating in a research report on Friday. KeyCorp set a $90.00 price objective on NIKE and gave the company an “overweight” rating in a report on Thursday, October 2nd. Citigroup restated a “neutral” rating and set a $65.00 price objective (down previously from $70.00) on shares of NIKE in a report on Friday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of NIKE in a research report on Monday. Finally, The Goldman Sachs Group set a $77.00 price target on shares of NIKE in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, NIKE currently has an average rating of “Moderate Buy” and an average price target of $78.14.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Tim Cook (Nike director and Apple CEO) disclosed an open?market purchase of 50,000 shares (~$2.95M), a high?visibility vote of confidence that helped lift pre?market momentum. Read More.
• Positive Sentiment: Director Robert Holmes Swan bought 8,691 shares (~$500k), increasing his stake materially — another insider accumulation that reinforces the positive sentiment from Cook’s trade. Read More.
• Positive Sentiment: Media and pundit commentary (e.g., Jim Cramer) has highlighted a potential multi?quarter recovery scenario, which can amplify retail buying following the insider headlines. Read More.
• Neutral Sentiment: Market roundups and analyst notes summarize mixed fundamentals and context (some firms still rate NKE a buy while others are cautious) — useful background but not a single catalyst. Read More.
• Negative Sentiment: Recent analyst downgrades and reports flag structural issues: margin compression, elevated payout ratio and weak China sales — risks that could cap upside even with short?term buying. Read More.
• Negative Sentiment: Post?earnings weakness (China decline, softer guidance) has already pushed shares below technical support, creating the backdrop for the earlier selloff that insiders appear to be buying into. Read More.

NIKE Stock Performance

The company has a market cap of $88.99 billion, a price-to-earnings ratio of 35.46, a PEG ratio of 2.41 and a beta of 1.29. The firm’s 50 day simple moving average is $64.64 and its 200-day simple moving average is $69.41. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.40 and a current ratio of 2.06.

NIKE (NYSE:NKE) last announced its quarterly earnings data on Thursday, December 18th. The footwear maker reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.16. NIKE had a net margin of 5.43% and a return on equity of 18.43%. The company had revenue of $12.43 billion during the quarter, compared to analysts’ expectations of $12.19 billion. During the same quarter in the prior year, the company earned $0.78 EPS. NIKE’s revenue was up .6% compared to the same quarter last year. On average, sell-side analysts predict that NIKE, Inc. will post 2.05 EPS for the current year.

NIKE Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, January 2nd. Shareholders of record on Monday, December 1st will be paid a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a yield of 2.7%. This is a positive change from NIKE’s previous quarterly dividend of $0.40. The ex-dividend date is Monday, December 1st. NIKE’s payout ratio is currently 96.47%.

Hedge Funds Weigh In On NIKE

Several institutional investors have recently bought and sold shares of NKE. Mascoma Wealth Management LLC acquired a new stake in shares of NIKE in the 2nd quarter valued at about $26,000. Halbert Hargrove Global Advisors LLC raised its position in NIKE by 952.6% in the 2nd quarter. Halbert Hargrove Global Advisors LLC now owns 400 shares of the footwear maker’s stock valued at $28,000 after purchasing an additional 362 shares during the last quarter. Saudi Central Bank purchased a new stake in shares of NIKE in the first quarter valued at about $30,000. Matrix Trust Co increased its stake in shares of NIKE by 53.1% during the second quarter. Matrix Trust Co now owns 441 shares of the footwear maker’s stock worth $31,000 after acquiring an additional 153 shares during the period. Finally, Twin Peaks Wealth Advisors LLC purchased a new stake in NIKE in the 2nd quarter valued at approximately $31,000. 64.25% of the stock is owned by institutional investors and hedge funds.

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).