NIKE (NYSE:NKE) Hits New 52-Week Low – Should You Sell?

NIKE, Inc. (NYSE:NKE)’s stock price reached a new 52-week low during trading on Wednesday . The company traded as low as $38.60 and last traded at $38.5650, with a volume of 12108085 shares. The stock had previously closed at $39.48.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE is appointing a senior executive with Walmart experience as it seeks to improve sales execution and rebuild momentum. The leadership addition provides a potential catalyst, although investors will likely want evidence of stronger results before changing their outlook. Nike taps Walmart veteran to help drive comeback
• Positive Sentiment: Some valuation measures suggest NKE shares may be undervalued after the prolonged decline. However, discounted-cash-flow analysis indicates the stock may be closer to fairly valued, limiting the strength of the bullish argument. Nike stock valuation analysis
• Positive Sentiment: Recent insider activity includes purchases by CEO Elliott Hill and other executives, signaling that some insiders view the depressed share price as attractive. Institutional positioning was mixed, with some large investors adding shares while others reduced holdings. Nike stock opinions and trading activity
• Neutral Sentiment: NIKE’s latest quarterly results exceeded earnings and revenue estimates, but revenue still declined year over year, reinforcing the view that the company’s recovery remains incomplete.
• Negative Sentiment: Truist downgraded NKE to Hold after weakness at retail partner Dick’s Sporting Goods raised concerns about soft traffic, muted consumer demand and a potentially longer turnaround. Analysts have also lowered price targets, citing China-related challenges. Why Nike stock is falling
• Negative Sentiment: Commentary highlights continued market-share erosion, legacy inventory issues and negative reactions to some upcoming Air Jordan designs, raising questions about NIKE’s product innovation and brand relevance. Nike performance struggles
• Negative Sentiment: Investors are also assessing dividend sustainability: NIKE’s payout growth could become more difficult to maintain if earnings do not improve materially during the turnaround. Nike dividend sustainability

Wall Street Analysts Forecast Growth

NKE has been the subject of several research reports. Berenberg Bank set a $49.00 price target on NIKE and gave the stock a “hold” rating in a research note on Friday, July 3rd. Oppenheimer dropped their price objective on shares of NIKE from $120.00 to $60.00 and set an “outperform” rating on the stock in a report on Friday, June 26th. Zacks Research upgraded shares of NIKE from a “strong sell” rating to a “hold” rating in a research note on Wednesday, August 19th. Needham & Company LLC reissued a “hold” rating on shares of NIKE in a research report on Thursday, June 4th. Finally, Rothschild & Co Redburn cut their price objective on shares of NIKE from $45.00 to $37.00 and set a “sell” rating for the company in a report on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $52.94.

NIKE Stock Down 0.6%

The stock’s fifty day moving average price is $42.02 and its 200 day moving average price is $47.17. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40. The stock has a market cap of $56.88 billion, a P/E ratio of 18.34, a price-to-earnings-growth ratio of 1.71 and a beta of 1.11.

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 analysts’ consensus estimates of $0.11 by $0.09. The firm had revenue of $10.97 billion during the quarter, compared to analyst estimates of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The business’s quarterly revenue was down 1.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.14 earnings per share. As a group, research analysts forecast that NIKE, Inc. will post 1.74 earnings per share for the current fiscal year.

NIKE Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be given a $0.41 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $1.64 annualized dividend and a yield of 4.3%. NIKE’s dividend payout ratio (DPR) is currently 78.47%.

Insider Buying and Selling

In other news, EVP Philip Mccartney sold 17,398 shares of the business’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $46.18, for a total value of $803,439.64. Following the completion of the transaction, the executive vice president directly owned 53,133 shares of the company’s stock, valued at approximately $2,453,681.94. The trade was a 24.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Venkatesh Alagirisamy sold 890 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $37,024.00. Following the sale, the chief operating officer directly owned 74,820 shares in the company, valued at approximately $3,112,512. The trade was a 1.18% 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. Over the last ninety days, insiders sold 26,142 shares of company stock valued at $1,169,380. Insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Main Street Financial Solutions LLC grew its holdings in NIKE by 4.2% in the second quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker’s stock worth $244,000 after purchasing an additional 139 shares during the last quarter. ANB Bank lifted its holdings in shares of NIKE by 0.7% during the 4th quarter. ANB Bank now owns 25,451 shares of the footwear maker’s stock valued at $1,621,000 after purchasing an additional 165 shares during the last quarter. Cornerstone Wealth Management LLC lifted its holdings in shares of NIKE by 4.4% during the 4th quarter. Cornerstone Wealth Management LLC now owns 3,970 shares of the footwear maker’s stock valued at $253,000 after purchasing an additional 169 shares during the last quarter. Caldwell Sutter Capital Inc. boosted its position in shares of NIKE by 7.6% in the 4th quarter. Caldwell Sutter Capital Inc. now owns 2,402 shares of the footwear maker’s stock worth $153,000 after purchasing an additional 170 shares in the last quarter. Finally, Activest Wealth Management boosted its position in shares of NIKE by 27.4% in the 4th quarter. Activest Wealth Management now owns 810 shares of the footwear maker’s stock worth $52,000 after purchasing an additional 174 shares in the last quarter. Hedge funds and other institutional investors own 64.25% of the company’s stock.

NIKE Company Profile

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).