NIKE (NYSE:NKE) Stock Falls 2.4% Following Analyst Downgrade

Shares of NIKE, Inc. (NYSE:NKE) traded down 2.4% on Friday after Royal Bank Of Canada lowered their price target on the stock from $40.00 to $39.00. Royal Bank Of Canada currently has a sector perform rating on the stock. NIKE traded as low as $37.96 and last traded at $38.6110. 20,414,855 shares traded hands during mid-day trading, a decline of 17% from the average session volume of 24,677,490 shares. The stock had previously closed at $39.56.

A number of other equities research analysts have also recently issued reports on the company. Raymond James Financial reaffirmed a “market perform” rating on shares of NIKE in a research report on Tuesday, September 29th. Williams Trading lowered shares of NIKE from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 2nd. Telsey Advisory Group set a $35.00 price objective on shares of NIKE and gave the stock a “market perform” rating in a research note on Friday, October 2nd. DZ Bank cut shares of NIKE from a “strong-buy” rating to a “strong sell” rating in a research note on Friday, October 2nd. Finally, JPMorgan Chase & Co. decreased their price objective on shares of NIKE from $40.00 to $33.00 and set an “underweight” rating for the company in a report on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twenty have issued a Hold rating and twelve have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $40.91.

Insider Activity

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total transaction of $137,992.89. Following the completion of the sale, the chief operating officer owned 104,862 shares in the company, valued at $3,941,762.58. This represents a 3.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Philip McCartney sold 2,559 shares of the firm’s stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $96,192.81. Following the completion of the sale, 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. 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. 1.10% of the stock is currently owned by insiders.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Recent gains in performance categories and North America have helped drive a 13.9% rally over the past month. Nike’s planned $2.5 billion in “Pace” savings could also support longer-term profitability, though the benefits may take time to emerge. Read More.
• Neutral Sentiment: Royal Bank of Canada trimmed its price target to $39 from $40 and maintained a “sector perform” rating, implying limited upside from the recently quoted share price. Read More.
• Negative Sentiment: Truist downgraded Nike from “hold” to “sell” and set a $29 target, citing portfolio risks and valuation. UBS also warned that recovery may lag expectations, maintaining a “neutral” rating with a $34 target. Read More. Read More.
• Negative Sentiment: Turnaround progress is clouded by weak sales and earnings expectations, a steep decline in China sales, and shrinking Jordan and Dunk demand. Analysts have also raised concerns that Nike’s valuation remains high relative to its near-term growth outlook. Read More. Read More.

Institutional Investors Weigh In On NIKE

Several hedge funds and other institutional investors have recently modified their holdings of NKE. State Street Corp grew its position in 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 last quarter. Flossbach Von Storch SE acquired a new position in shares of NIKE during the second quarter valued at about $488,714,000. Amundi raised its position in shares of NIKE by 59.4% during the second quarter. Amundi now owns 6,460,398 shares of the footwear maker’s stock valued at $265,199,000 after buying an additional 2,406,609 shares during the last quarter. Van ECK Associates Corp lifted its stake in shares of NIKE by 4.8% in the second quarter. Van ECK Associates Corp now owns 6,257,863 shares of the footwear maker’s stock valued at $256,885,000 after buying an additional 286,395 shares during the period. Finally, Swiss National Bank lifted its stake in shares of NIKE by 7.3% in the first quarter. Swiss National Bank now owns 3,496,700 shares of the footwear maker’s stock valued at $184,696,000 after buying an additional 237,600 shares during the period. Institutional investors and hedge funds own 64.25% of the company’s stock.

NIKE Trading Down 2.4%

The firm has a market cap of $57.35 billion, a P/E ratio of 18.56, a PEG ratio of 4.73 and a beta of 1.01. The company’s 50 day moving average is $36.90 and its two-hundred day moving average is $45.76. The company has a debt-to-equity ratio of 0.39, a current ratio of 2.07 and a quick ratio of 1.39.

NIKE (NYSE:NKE) last issued its quarterly earnings results on Thursday, October 1st. The footwear maker reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.05. The firm had revenue of $11.21 billion for the quarter, compared to analyst estimates of $11.32 billion. NIKE had a return on equity of 15.94% and a net margin of 6.74%. The company’s quarterly revenue was down 4.3% compared to the same quarter last year. During the same period in the previous year, the company posted $0.49 earnings per share. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. On average, sell-side analysts predict that NIKE, Inc. will post 1.22 earnings per share for the current year.

NIKE Company Profile

NIKE, Inc designs, develops, markets and sells athletic footwear, apparel, equipment and accessories for sports and fitness, as well as lifestyle products. Its portfolio includes the Nike and Jordan brands, and it owns Converse, which sells casual footwear, apparel and accessories.

The company sells products worldwide through wholesale partners and its own retail stores and digital platforms. Its offerings serve customers across a range of sports and activities, including running, basketball, soccer and training.

NIKE traces its roots to Blue Ribbon Sports, founded in 1964 by Phil Knight and Bill Bowerman.