NIKE (NYSE:NKE) Sets New 1-Year Low After Analyst Downgrade

NIKE, Inc. (NYSE:NKE) hit a new 52-week low during mid-day trading on Tuesday after Robert W. Baird downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $36.45 and last traded at $36.3660, with a volume of 2654744 shares changing hands. The stock had previously closed at $37.05.

Other analysts have also recently issued reports about the stock. Citigroup cut shares of NIKE from a “neutral” rating to a “negative” rating in a research note on Monday. Bank of America dropped their target price on shares of NIKE from $55.00 to $47.00 and set a “neutral” rating for the company in a report on Wednesday, July 1st. BMO Capital Markets assumed coverage on NIKE in a research note on Tuesday, September 8th. They issued an “underperform” rating and a $30.00 price target for the company. Telsey Advisory Group set a $47.00 price target on NIKE and gave the stock a “market perform” rating in a research note on Wednesday, July 1st. Finally, Stifel Nicolaus set a $45.00 price target on NIKE and gave the company a “hold” rating in a report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-one have issued a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $49.09.

Insider Activity at NIKE

In related news, insider Amy Montagne sold 4,867 shares of the company’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $42.05, for a total transaction of $204,657.35. Following the completion of the transaction, the insider owned 57,436 shares in the company, valued at approximately $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Philip McCartney sold 2,559 shares of the firm’s stock in a transaction on Wednesday, September 9th. The shares were 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 of the company’s stock, valued at $2,936,568.39. The trade was a 3.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,974 shares of company stock worth $600,126 over the last ninety days. 1.10% of the stock is owned by corporate insiders.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Some investors see potential upside if Nike’s turnaround gains traction. Analyst price targets remain widely dispersed, including a $75 bull-case target, while the company’s roughly 4% dividend yield may provide support for income-oriented shareholders. Will Nike’s Stock Price Sink to $23? Here Are the Bear, Base, and Bull Cases Over the Next Year
• Positive Sentiment: Nike’s next earnings report, expected early next month, could provide a near-term catalyst if management shows improving demand, progress in China or better margins. The latest quarter’s $0.20 adjusted earnings per share surpassed the $0.11 consensus estimate.
• Neutral Sentiment: Recent insider activity is mixed: CEO Elliott Hill and other investors bought shares, but several executives have sold stock. Chief Legal Officer Robert Leinwand sold 3,646 shares worth approximately $137,000, a transaction representing about 4% of his prior stake. Nike’s Chief Legal Officer Sells 3,646 Shares as the Stock Falls to a 52-Week Low
• Negative Sentiment: Robert W. Baird downgraded NIKE (NKE) from “strong buy” to “hold,” adding to the negative analyst momentum.
• Negative Sentiment: Citigroup lowered its price target from $45 to $39 and maintained a “neutral” rating, signaling reduced confidence in the pace of recovery. Citigroup lowers Nike price target
• Negative Sentiment: Market commentary highlights persistent weak demand, China headwinds and broader Wall Street concern over Nike’s turnaround, all of which are weighing on investor sentiment. NKE Stock Slips Premarket: Nike Hits Historic Low As Turnaround Struggles Mount

Institutional Investors Weigh In On NIKE

Several large investors have recently made changes to their positions in NKE. Westerkirk Capital Inc. raised its holdings in shares of NIKE by 52.4% in the 4th quarter. Westerkirk Capital Inc. now owns 131,220 shares of the footwear maker’s stock valued at $8,360,000 after purchasing an additional 45,100 shares during the period. OMERS ADMINISTRATION Corp increased its position in NIKE by 77.9% during the fourth quarter. OMERS ADMINISTRATION Corp now owns 2,526,179 shares of the footwear maker’s stock worth $160,943,000 after buying an additional 1,106,499 shares during the last quarter. OneDigital Investment Advisors LLC raised its stake in NIKE by 32.8% in the second quarter. OneDigital Investment Advisors LLC now owns 244,296 shares of the footwear maker’s stock valued at $10,028,000 after buying an additional 60,375 shares during the period. Deutsche Bank AG raised its stake in NIKE by 8.0% in the second quarter. Deutsche Bank AG now owns 3,566,634 shares of the footwear maker’s stock valued at $146,410,000 after buying an additional 264,576 shares during the period. Finally, Nomura Asset Management Co. Ltd. boosted its stake in shares of NIKE by 17.2% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 731,159 shares of the footwear maker’s stock worth $46,582,000 after acquiring an additional 107,282 shares during the period. 64.25% of the stock is owned by institutional investors.

NIKE Price Performance

The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. The business has a fifty day moving average of $40.92 and a two-hundred day moving average of $45.00. The firm has a market capitalization of $54.04 billion, a price-to-earnings ratio of 17.40, a price-to-earnings-growth ratio of 1.80 and a beta of 1.10.

NIKE (NYSE:NKE) last issued its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.09. The company had revenue of $10.97 billion for the quarter, compared to analyst estimates of $10.85 billion. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The company’s revenue was down 1.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.14 earnings per share. As a group, research analysts predict that NIKE, Inc. will post 1.74 EPS for the current fiscal year.

NIKE Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 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 4.5%. The ex-dividend date is Tuesday, September 1st. NIKE’s dividend payout ratio is presently 78.47%.

About NIKE

NIKE, Inc is a global athletic footwear, apparel and equipment company headquartered near Beaverton, Oregon. The company designs, develops and markets products under the NIKE, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE’s offerings include athletic and casual footwear, sportswear, apparel, accessories and athletic equipment. The company distributes its products through company-owned retail stores, digital platforms, wholesale partners and independent distributors.