NIKE (NYSE:NKE) Stock Rating Cut to “Strong Sell” at Zacks Research

Zacks Research lowered shares of NIKE (NYSE:NKE) from a hold rating to a strong sell rating in a report issued on Thursday morning,Zacks reports.

A number of other analysts have also recently commented on NKE. Freedom Broker upgraded shares of NIKE from a “sell” rating to a “buy” rating and dropped their price target for the company from $54.00 to $51.00 in a research note on Friday. BNP Paribas Exane set a $19.00 target price on shares of NIKE and gave the company an “underperform” rating in a report on Friday. China Renaissance dropped their target price on NIKE from $50.30 to $47.30 and set a “hold” rating on the stock in a research report on Thursday, July 2nd. Raymond James Financial reaffirmed a “market perform” rating on shares of NIKE in a report on Tuesday. Finally, Bank of America reiterated an “underperform” rating and set a $24.00 price objective (down from $30.00) on shares of NIKE in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-two have issued a Hold rating and eight have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $42.12.

NIKE Trading Down 3.6%

Shares of NKE opened at $33.88 on Thursday. The business has a 50-day moving average of $38.88 and a 200 day moving average of $42.88. NIKE has a fifty-two week low of $31.97 and a fifty-two week high of $74.78. The firm has a market cap of $50.27 billion, a P/E ratio of 16.29, a price-to-earnings-growth ratio of 2.42 and a beta of 1.09. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96.

NIKE (NYSE:NKE) last released its quarterly earnings data on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, beating the consensus estimate of $0.43 by $0.05. The business had revenue of $11.21 billion for the quarter, compared to the consensus estimate of $11.32 billion. NIKE had a net margin of 6.74% and a return on equity of 16.18%. The company’s revenue was down 4.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.49 earnings per share. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. As a group, research analysts forecast that NIKE will post 1.61 EPS for the current year.

NIKE Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 1st were given a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 4.8%. The ex-dividend date was Tuesday, September 1st. NIKE’s payout ratio is presently 78.47%.

Insiders Place Their Bets

In other NIKE news, COO Venkatesh Alagirisamy sold 3,671 shares of the firm’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 sale, the chief operating officer owned 104,862 shares of the company’s stock, valued at $3,941,762.58. This trade represents a 3.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Philip McCartney sold 2,559 shares of NIKE stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $96,192.81. Following the sale, the executive vice president owned 78,121 shares of the company’s stock, valued at approximately $2,936,568.39. This trade represents a 3.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,974 shares of company stock valued at $600,126 over the last 90 days. 1.10% of the stock is owned by insiders.

Hedge Funds Weigh In On NIKE

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Scarborough Advisors LLC purchased a new position in NIKE in the first quarter worth $25,000. Cornerstone Financial Management LLC bought a new stake in NIKE during the fourth quarter worth about $26,000. Sankala Group LLC purchased a new position in shares of NIKE in the 4th quarter worth about $26,000. Meeder Asset Management Inc. boosted its holdings in shares of NIKE by 108.4% in the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock worth $29,000 after purchasing an additional 285 shares in the last quarter. Finally, Atlas Wealth LLC bought a new position in shares of NIKE during the 1st quarter valued at about $31,000. Hedge funds and other institutional investors own 64.25% of the company’s stock.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE reported fiscal Q1 EPS of $0.48, above the $0.43 analyst consensus. The company also retains a strong balance sheet, with approximately $8.4 billion in cash and short-term investments, while its dividend yield is approaching 5%. NIKE Posts Earnings Results
• Positive Sentiment: Some analysts see the selloff as an opportunity. Freedom Broker upgraded NKE from “sell” to “buy” with a $51 price target, while BTIG maintained a “buy” rating with a $50 target. Bernstein called the stock “de-risked” following the earnings release. Bernstein says Nike stock is de-risked
• Neutral Sentiment: NIKE is launching the Pace restructuring program, targeting approximately $2.5 billion in savings. Management said the plan is intended to simplify operations and support performance categories, but implementation will include further job cuts likely extending into 2027. NIKE fiscal 2027 first-quarter results
• Neutral Sentiment: The company’s dividend appears supported by its liquidity and history of 24 consecutive years of increases, although a higher yield also reflects the stock’s substantial decline and investors’ concerns about future earnings.
• Negative Sentiment: Fiscal Q1 revenue fell 4.3% year over year to $11.21 billion, below the $11.32 billion consensus estimate. Weakness in Greater China, Sportswear and Jordan continued to weigh on sales, while competition and changing consumer preferences are pressuring the brand. Nike plans more job cuts and forecasts revenue drop
• Negative Sentiment: Management expects fiscal 2027 revenue to decline by a high-single-digit percentage and provided EPS guidance of $1.15–$1.35, well below the roughly $1.66 analyst consensus. The outlook suggests Nike’s turnaround may take longer and be more costly than investors expected. Nike shares fall after weak outlook and layoffs
• Negative Sentiment: Several firms reduced price targets, including Citi to $32 and JPMorgan to $33, with neutral or underweight ratings. Zacks also placed NKE on its Strong Sell list, reinforcing concerns about margin pressure, China weakness and delayed recovery.

About NIKE

NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.

The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.