NIKE (NYSE:NKE) Upgraded at BMO Capital Markets

BMO Capital Markets upgraded shares of NIKE (NYSE:NKE) to a strong sell rating in a report issued on Tuesday,Zacks reports.

Other equities research analysts have also issued research reports about the stock. Wells Fargo & Company decreased their target price on shares of NIKE from $45.00 to $40.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 1st. Citigroup reiterated a “neutral” rating on shares of NIKE in a report on Wednesday, July 22nd. Truist Financial set a $42.00 price objective on NIKE and gave the company a “hold” rating in a research report on Wednesday, August 26th. Morgan Stanley set a $31.00 price objective on NIKE and gave the company an “underweight” rating in a research report on Thursday. Finally, Argus upgraded NIKE to a “strong-buy” rating in a research note on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, twenty have issued a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $50.12.

NIKE Price Performance

Shares of NYSE:NKE opened at $36.57 on Tuesday. The company’s fifty day moving average is $41.19 and its two-hundred day moving average is $45.38. The company has a market cap of $54.25 billion, a P/E ratio of 17.50, a price-to-earnings-growth ratio of 1.83 and a beta of 1.10. NIKE has a 12-month low of $36.55 and a 12-month high of $76.97. The company has a quick ratio of 1.36, a current ratio of 1.96 and a debt-to-equity ratio of 0.40.

NIKE (NYSE:NKE) last issued its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping the consensus estimate of $0.11 by $0.09. The business had revenue of $10.97 billion during the quarter, compared to analysts’ expectations of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.NIKE’s revenue was down 1.1% compared to the same quarter last year. During the same quarter last year, the firm posted $0.14 earnings per share. Equities analysts expect that NIKE will post 1.74 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be paid a $0.41 dividend. This represents a $1.64 annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend is Tuesday, September 1st. NIKE’s dividend payout ratio (DPR) is 78.47%.

Insider Buying and Selling at NIKE

In other NIKE news, insider Amy Montagne sold 4,867 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the sale, the insider directly owned 57,436 shares in the company, valued at approximately $2,415,183.80. This trade represents a 7.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Venkatesh Alagirisamy sold 3,671 shares of the company’s stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $137,992.89. Following the transaction, the chief operating officer directly owned 104,862 shares of the company’s stock, valued at $3,941,762.58. This represents a 3.38% 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 90 days, insiders have sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is currently owned by company insiders.

Institutional Trading of NIKE

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Main Street Financial Solutions LLC increased its holdings in shares of NIKE by 4.2% in the second quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker’s stock valued at $244,000 after purchasing an additional 139 shares in the last quarter. ANB Bank boosted its position in shares of NIKE by 0.7% during the fourth quarter. ANB Bank now owns 25,451 shares of the footwear maker’s stock worth $1,621,000 after purchasing an additional 165 shares in the last quarter. Cornerstone Wealth Management LLC lifted its holdings in NIKE by 4.4% during the fourth quarter. Cornerstone Wealth Management LLC now owns 3,970 shares of the footwear maker’s stock worth $253,000 after acquiring an additional 169 shares in the last quarter. Blue Bell Private Wealth Management LLC grew its position in shares of NIKE by 14.1% in the 4th quarter. Blue Bell Private Wealth Management LLC now owns 1,416 shares of the footwear maker’s stock valued at $90,000 after purchasing an additional 175 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC boosted its holdings in shares of NIKE by 0.8% in the third quarter. Laird Norton Wetherby Wealth Management LLC now owns 23,293 shares of the footwear maker’s stock valued at $1,624,000 after buying an additional 181 shares during the period. 64.25% of the stock is owned by institutional investors.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s depressed valuation and approximately 4.5% dividend yield could attract long-term investors if management can successfully execute a turnaround. Some analysis argues that the underlying business remains viable despite weak sentiment. Nike: The Sentiment Is Bleak, But The Underlying Business Is Not Broken
• Neutral Sentiment: Shareholders approved an expanded employee stock purchase plan. The initiative may help employee retention, but potential future share issuance could dilute existing shareholders. Nike Shareholders Approve Expanded Employee Stock Purchase Plan
• Negative Sentiment: BMO Capital Markets initiated coverage with a “Strong Sell” or Underperform-equivalent view, adding to Wall Street pressure on the stock. Morgan Stanley also warned that NIKE’s weakness may persist, citing soft operations and a difficult recovery. BMO Says Sell Nike Stock
• Negative Sentiment: NIKE is set to lose its S&P 100 membership after nearly 18 years. The index demotion may reduce index-related demand and reinforces concerns about the company’s substantial market-value decline. Nike Loses Its S&P 100 Membership
• Negative Sentiment: Executives Philip McCartney and COO Venkatesh Alagirisamy each sold shares worth roughly $96,000 and $138,000, respectively. Both transactions were made under pre-arranged Rule 10b5-1 plans, reducing their negative signaling value, but the sales add to near-term caution. NIKE Insider Selling
• Negative Sentiment: Analysts continue to cite shifting consumer preferences, intense competition and broad product-market exposure as structural challenges that could delay a meaningful recovery. Shifting Consumer Preferences Continue to Impact Nike and Lululemon

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.