Stock Traders Purchase High Volume of NIKE Call Options (NYSE:NKE)

NIKE, Inc. (NYSE:NKE) saw some unusual options trading activity on Friday. Stock investors bought 182,729 call options on the stock. This represents an increase of 59% compared to the average daily volume of 115,283 call options.

Insider Activity

In other news, COO Venkatesh Alagirisamy sold 890 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total transaction of $37,024.00. Following the completion of the sale, the chief operating officer owned 74,820 shares of the company’s stock, valued at approximately $3,112,512. This represents a 1.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $42.05, for a total transaction of $204,657.35. Following the sale, the insider owned 57,436 shares in the company, valued at $2,415,183.80. This represents a 7.81% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 26,142 shares of company stock worth $1,169,380. Insiders own 1.10% of the company’s stock.

Institutional Trading of NIKE

A number of large investors have recently bought and sold shares of the business. California State Teachers Retirement System boosted its position in shares of NIKE by 4,052.9% during the 2nd quarter. California State Teachers Retirement System now owns 75,611,801 shares of the footwear maker’s stock valued at $3,103,864,000 after purchasing an additional 73,791,103 shares in the last quarter. J. Stern & Co. LLP increased its holdings in NIKE by 49,010.4% in the fourth quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker’s stock worth $3,061,555,000 after purchasing an additional 47,956,692 shares in the last quarter. Norges Bank acquired a new position in NIKE in the fourth quarter valued at approximately $829,956,000. Flossbach Von Storch SE bought a new position in shares of NIKE during the 2nd quarter worth approximately $488,714,000. Finally, Harris Associates L P bought a new position in shares of NIKE during the 2nd quarter worth approximately $621,525,000. 64.25% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Truist Financial set a $42.00 price target on NIKE and gave the stock a “hold” rating in a report on Wednesday. DZ Bank reiterated a “buy” rating on shares of NIKE in a research report on Tuesday, June 30th. Zacks Research raised NIKE from a “strong sell” rating to a “hold” rating in a research note on Wednesday, August 19th. Evercore set a $46.00 target price on shares of NIKE and gave the stock an “in-line” rating in a report on Tuesday, June 23rd. Finally, Guggenheim restated a “buy” rating and issued a $60.00 price target (down from $74.00) on shares of NIKE in a research note on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $52.94.

NIKE Trading Up 2.9%

Shares of NIKE stock traded up $1.13 during midday trading on Friday, reaching $39.57. The company had a trading volume of 28,380,666 shares, compared to its average volume of 21,726,090. The firm has a market cap of $58.70 billion, a PE ratio of 18.93, a P/E/G ratio of 1.71 and a beta of 1.11. The stock has a fifty day moving average price of $41.91 and a 200 day moving average price of $47.11. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36. NIKE has a fifty-two week low of $38.17 and a fifty-two week high of $79.13.

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

NIKE Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be issued a $0.41 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $1.64 annualized dividend and a yield of 4.1%. NIKE’s payout ratio is presently 78.47%.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Traders purchased 182,729 NKE call options, 59% above typical daily call volume. The activity may reflect increased bullish speculation, although options positioning does not guarantee sustained buying in the shares.
• Positive Sentiment: Grupo SBF extended its exclusive Nike distribution agreement in Brazil through 2034. The longer arrangement provides continued access to an important Latin American market and supports Nike’s regional distribution network. Grupo SBF Extends Exclusive Nike Distribution Deal in Brazil to 2034
• Neutral Sentiment: NIKE said it will release fiscal first-quarter 2027 results on October 1 after the market close, followed by a management conference call. Investors will look for evidence that the company’s turnaround is improving sales, inventory levels and margins. NIKE Announces First Quarter Fiscal 2027 Earnings and Conference Call
• Neutral Sentiment: NIKE appointed Walmart veteran Jane Ewing as chief commercial officer to help lead its comeback. The hire could strengthen execution and retail strategy, but investors are likely to want measurable results before assigning significant value to the turnaround. Nike Taps Walmart Veteran to Help Drive Comeback
• Negative Sentiment: Reports say Nike’s China business continues to shrink as domestic competitors gain market share and the brand struggles to remain locally relevant. China weakness threatens a key source of long-term growth. Why America’s Biggest Brands Keep Losing in China
• Negative Sentiment: Analysts and market commentary continue to cite soft consumer confidence, weaker traffic, excess legacy inventory and doubts about product innovation. These concerns reinforce expectations for a prolonged recovery and have contributed to reduced price targets and bearish sentiment.

About NIKE

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).