NIKE (NYSE:NKE) Shares Gap Down After Analyst Downgrade

NIKE, Inc. (NYSE:NKE) shares gapped down prior to trading on Friday after Bank of America lowered their price target on the stock from $84.00 to $73.00. The stock had previously closed at $65.63, but opened at $59.20. Bank of America currently has a buy rating on the stock. NIKE shares last traded at $59.4820, with a volume of 19,209,855 shares.

Other research analysts have also recently issued research reports about the stock. BTIG Research reiterated a “buy” rating and set a $100.00 price target on shares of NIKE in a research note on Friday, December 12th. Stifel Nicolaus set a $68.00 target price on NIKE and gave the company a “hold” rating in a research report on Wednesday, October 1st. Piper Sandler set a $75.00 price target on NIKE and gave the stock an “overweight” rating in a research report on Friday. Telsey Advisory Group decreased their price objective on NIKE from $75.00 to $72.00 and set a “market perform” rating on the stock in a research note on Friday. Finally, Morgan Stanley set a $72.00 price objective on NIKE and gave the company a “positive” rating in a research report on Wednesday, October 1st. Three analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating and ten have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $77.90.

Insider Activity

In related news, Chairman Mark G. Parker sold 86,078 shares of the business’s stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of $64.80, for a total value of $5,577,854.40. Following the transaction, the chairman directly owned 647,615 shares of the company’s stock, valued at approximately $41,965,452. The trade was a 11.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Treasure Heinle sold 4,300 shares of the stock in a transaction that occurred on Monday, October 6th. The shares were sold at an average price of $71.27, for a total transaction of $306,461.00. Following the sale, the executive vice president directly owned 29,396 shares of the company’s stock, valued at approximately $2,095,052.92. This trade represents a 12.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.80% of the company’s stock.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Q2 beat on revenue and EPS: Nike posted revenue of about $12.4B and EPS of $0.53, topping consensus — evidence the turnaround has traction in parts of the business. Press Release
• Positive Sentiment: North America and wholesale strength: North America sales rose (~9%) and wholesale grew (~8%), and running product continued strong double?digit growth — positives for recovery in core categories. CNBC: Earnings Coverage
• Neutral Sentiment: Management: “Middle innings” messaging — Nike says the turnaround is still early and outlined steps to reduce tariff impact over time; that suggests progress but not immediate relief. MarketWatch
• Negative Sentiment: Margin pressure and tariff headwinds: Gross margin fell ~300 bps (to ~40.6%) due to discounting and tariffs; company expects further gross?margin contraction next quarter, and has cited substantial tariff costs — a key reason investors sold off. Blockonomi: Margin Pressure
• Negative Sentiment: China weakness: Greater China revenue plunged (reported ~mid-to-high teens decline, footwear worse), and Nike’s direct digital sales in China fell sharply — undermining growth assumptions for a major market. Reuters: China Conundrum
• Negative Sentiment: Lower guidance and analyst reaction: Nike warned of low?single digit revenue decline next quarter and margin contraction; several analysts trimmed price targets and cut forecasts, amplifying downside sentiment. Benzinga: Analyst Cuts

Institutional Trading of NIKE

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its holdings in shares of NIKE by 1.3% during the 3rd quarter. Vanguard Group Inc. now owns 115,291,199 shares of the footwear maker’s stock valued at $8,039,255,000 after purchasing an additional 1,467,414 shares during the last quarter. State Street Corp lifted its position in shares of NIKE by 2.8% in the second quarter. State Street Corp now owns 59,154,159 shares of the footwear maker’s stock worth $4,225,441,000 after buying an additional 1,590,603 shares in the last quarter. Capital World Investors lifted its position in shares of NIKE by 0.7% in the third quarter. Capital World Investors now owns 42,239,013 shares of the footwear maker’s stock worth $2,945,326,000 after buying an additional 286,615 shares in the last quarter. Invesco Ltd. boosted its stake in NIKE by 3.3% during the third quarter. Invesco Ltd. now owns 12,561,334 shares of the footwear maker’s stock valued at $875,902,000 after buying an additional 404,136 shares during the last quarter. Finally, Jennison Associates LLC grew its holdings in NIKE by 42.3% during the 3rd quarter. Jennison Associates LLC now owns 11,838,528 shares of the footwear maker’s stock valued at $825,501,000 after buying an additional 3,518,666 shares in the last quarter. 64.25% of the stock is currently owned by institutional investors.

NIKE Price Performance

The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.45 and a current ratio of 2.19. The firm has a fifty day simple moving average of $65.18 and a two-hundred day simple moving average of $69.41. The firm has a market cap of $88.60 billion, a PE ratio of 30.79, a PEG ratio of 2.32 and a beta of 1.29.

NIKE (NYSE:NKE) last posted its earnings results on Thursday, December 18th. The footwear maker reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.16. NIKE had a return on equity of 21.16% and a net margin of 6.23%.The firm had revenue of $12.43 billion during the quarter, compared to the consensus estimate of $12.19 billion. During the same period in the prior year, the company earned $0.78 EPS. The company’s quarterly revenue was up .6% compared to the same quarter last year. Equities analysts predict that NIKE, Inc. will post 2.05 EPS for the current fiscal year.

NIKE Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 2nd. Shareholders of record on Monday, December 1st will be paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Monday, December 1st. This is an increase from NIKE’s previous quarterly dividend of $0.40. NIKE’s dividend payout ratio is 84.10%.

About NIKE

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.