NIKE (NYSE:NKE) Downgraded by Wells Fargo & Company to “Hold”

Wells Fargo & Company cut shares of NIKE (NYSE:NKE) from a strong-buy rating to a hold rating in a research report sent to investors on Friday,Zacks.com reports.

A number of other research analysts have also recently weighed in on the stock. Jefferies Financial Group dropped their price objective on shares of NIKE from $110.00 to $90.00 and set a “buy” rating for the company in a research note on Wednesday, April 1st. Royal Bank Of Canada reissued a “buy” rating on shares of NIKE in a research note on Wednesday, April 1st. Bank of America reissued a “neutral” rating and set a $55.00 price objective (down from $73.00) on shares of NIKE in a research note on Wednesday, April 1st. Berenberg Bank reissued a “neutral” rating on shares of NIKE in a research note on Wednesday. Finally, UBS Group decreased their target price on shares of NIKE from $58.00 to $54.00 and set a “neutral” rating on the stock in a research report on Wednesday, April 1st. Sixteen research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $62.04.

NIKE Trading Down 0.7%

Shares of NKE opened at $44.10 on Friday. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.14 and a quick ratio of 1.45. The firm has a 50 day simple moving average of $50.16 and a 200-day simple moving average of $59.14. NIKE has a 1-year low of $42.09 and a 1-year high of $80.17. The stock has a market cap of $65.31 billion, a price-to-earnings ratio of 29.21, a price-to-earnings-growth ratio of 2.36 and a beta of 1.12.

NIKE (NYSE:NKE) last issued its quarterly earnings data on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.29 by $0.06. NIKE had a net margin of 4.84% and a return on equity of 16.41%. The business had revenue of $11.28 billion during the quarter, compared to analysts’ expectations of $11.23 billion. During the same period last year, the company posted $0.54 EPS. The company’s revenue was up .1% on a year-over-year basis. Equities analysts forecast that NIKE will post 1.51 EPS for the current fiscal year.

NIKE Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be issued a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date is Monday, June 1st. NIKE’s dividend payout ratio (DPR) is 108.61%.

Insider Activity at NIKE

In related news, Director Robert Holmes Swan purchased 11,781 shares of the firm’s stock in a transaction on Tuesday, April 7th. The shares were bought at an average price of $42.44 per share, for a total transaction of $499,985.64. Following the acquisition, the director directly owned 55,074 shares in the company, valued at $2,337,340.56. This trade represents a 27.21% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, Director John W. Rogers, Jr. purchased 4,000 shares of the firm’s stock in a transaction on Thursday, April 9th. The stock was bought at an average price of $43.34 per share, for a total transaction of $173,360.00. Following the acquisition, the director owned 41,022 shares in the company, valued at $1,777,893.48. The trade was a 10.80% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased 64,441 shares of company stock worth $2,734,204 in the last 90 days. Company insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On NIKE

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Main Street Financial Solutions LLC lifted its holdings in shares of NIKE by 4.2% during the 2nd quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker’s stock valued at $244,000 after acquiring an additional 139 shares in the last quarter. Diligent Investors LLC lifted its holdings in shares of NIKE by 4.3% during the 4th quarter. Diligent Investors LLC now owns 3,719 shares of the footwear maker’s stock valued at $237,000 after acquiring an additional 153 shares in the last quarter. CVA Family Office LLC lifted its holdings in shares of NIKE by 8.0% during the 3rd quarter. CVA Family Office LLC now owns 2,113 shares of the footwear maker’s stock valued at $147,000 after acquiring an additional 156 shares in the last quarter. Naples Global Advisors LLC lifted its holdings in shares of NIKE by 1.9% during the 3rd quarter. Naples Global Advisors LLC now owns 8,514 shares of the footwear maker’s stock valued at $597,000 after acquiring an additional 159 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA lifted its holdings in shares of NIKE by 4.3% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 3,978 shares of the footwear maker’s stock valued at $253,000 after acquiring an additional 163 shares in the last quarter. Institutional investors and hedge funds own 64.25% of the company’s stock.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Negative Sentiment: Wells Fargo downgraded NIKE to Equal Weight from Overweight and cut its price target to $45 from $55, saying a GLP-1-driven shift in consumer behavior could become a new headwind for athletic wear demand. Article Title
• Negative Sentiment: Reuters reported that bets against NIKE have surged, adding to pressure on CEO Elliott Hill to stabilize performance and restore investor confidence. Article Title
• Negative Sentiment: NIKE is also facing ongoing scrutiny over weak earnings, revenue pressure, and restructuring costs as it moves ahead with nearly 1,400 job cuts tied to its “Win Now” overhaul. Article Title
• Neutral Sentiment: NIKE’s board declared a quarterly dividend of $0.41 per share, which supports the company’s shareholder-return story but does not offset the broader concerns around growth and execution. Article Title
• Neutral Sentiment: Several articles note increased investor attention and valuation-reset chatter, but these appear to be more reflective of market interest than a clear fundamental catalyst. Article Title

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).