JPMorgan Chase & Co. Reiterates Sell Rating for NIKE (NYSE:NKE)

NIKE (NYSE:NKE)‘s stock had its “sell” rating restated by stock analysts at JPMorgan Chase & Co. in a report issued on Monday.

A number of other analysts also recently issued reports on NKE. UBS Group set a $48.00 price objective on NIKE and gave the stock a “neutral” rating in a research report on Wednesday, July 1st. The Goldman Sachs Group reduced their price target on shares of NIKE from $46.00 to $42.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 1st. DZ Bank restated a “buy” rating on shares of NIKE in a report on Tuesday, June 30th. Berenberg Bank set a $49.00 price objective on shares of NIKE and gave the stock a “hold” rating in a research report on Friday, July 3rd. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of NIKE in a research report on Tuesday, August 25th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $52.94.

NIKE Stock Down 2.4%

NYSE:NKE traded down $0.94 during mid-day trading on Monday, hitting $38.12. 22,007,793 shares of the company’s stock traded hands, compared to its average volume of 21,713,518. The company has a fifty day moving average of $41.82 and a 200 day moving average of $46.84. 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 has a twelve month low of $37.97 and a twelve month high of $76.97. The company has a market capitalization of $56.55 billion, a P/E ratio of 18.24, a P/E/G ratio of 1.76 and a beta of 1.11.

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

Insider Buying and Selling at NIKE

In other NIKE news, COO Venkatesh Alagirisamy sold 890 shares of the business’s stock in a transaction 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 in the company, valued at $3,112,512. The trade was a 1.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total transaction of $102,460.80. Following the sale, the chief financial officer directly owned 82,165 shares in the company, valued at $3,418,064. This trade represents a 2.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 26,142 shares of company stock worth $1,169,380. Company insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On NIKE

Institutional investors have recently made changes to their positions in the stock. Cornerstone Financial Management LLC acquired a new position in NIKE in the 4th quarter valued at $26,000. Sankala Group LLC bought a new stake in shares of NIKE during the fourth quarter valued at about $26,000. J.Safra Asset Management Corp bought a new stake in shares of NIKE during the fourth quarter valued at about $29,000. Kemnay Advisory Services Inc. purchased a new stake in shares of NIKE in the fourth quarter worth about $30,000. Finally, Scarborough Advisors LLC purchased a new stake in shares of NIKE in the first quarter worth about $25,000. 64.25% of the stock is owned by institutional investors.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s inventory cleanup is intended to reduce excess products and reliance on discounting. New footwear launches and supply-chain initiatives could improve product mix and margins over the longer term. NIKE’s Inventory Cleanup: Short-Term Pain, Long-Term Gain Ahead?
• Positive Sentiment: The company reinstated its chief commercial officer role and appointed Walmart veteran Jane Ewing, potentially strengthening its commercial execution. NIKE also announced a Foot Locker partnership for The Crenshaw Rec retail and community venue in Los Angeles. Nike Reinstates Chief Commercial Officer Role
• Neutral Sentiment: NIKE recently exceeded quarterly earnings and revenue expectations, but sales still declined year over year, underscoring the challenge of returning to sustained growth.
• Negative Sentiment: J.P. Morgan maintained a Sell rating and lowered its fiscal 2027 earnings outlook, citing downside risk to consensus estimates, weaker conditions in China and intensifying competition. The revision reinforces concerns that the turnaround may take longer than expected. JPMorgan Cuts Nike 2027 Earnings Outlook, Flags China, Rising Competition
• Negative Sentiment: The inventory reduction is likely to create short-term pain through markdowns and weaker margins before excess stock is cleared, weighing on near-term profitability.
• Negative Sentiment: NIKE underperformed the broader market in the latest session, adding to investor caution amid ongoing concerns about demand, competition and the company’s turnaround. Nike Suffers a Larger Drop Than the General Market: Key Insights

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).