NIKE (NYSE:NKE) Sets New 1-Year Low After Analyst Downgrade

NIKE, Inc. (NYSE:NKE) reached a new 52-week low on Tuesday after Robert W. Baird downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $36.45 and last traded at $36.3660, with a volume of 2654744 shares. The stock had previously closed at $37.05.

A number of other research analysts have also recently commented on NKE. Jefferies Financial Group reissued a “buy” rating on shares of NIKE in a report on Tuesday, August 25th. Weiss Ratings raised NIKE from a “sell (d)” rating to a “sell (d+)” rating in a research note on Friday, July 17th. Wells Fargo & Company decreased their price target on shares of NIKE from $45.00 to $40.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 1st. Bank of America dropped their price target on shares of NIKE from $55.00 to $47.00 and set a “neutral” rating for the company in a research note on Wednesday, July 1st. Finally, Truist Financial set a $42.00 price target on shares of NIKE and gave the stock a “hold” rating in a report on Wednesday, August 26th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty-one have assigned a Hold rating and six have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $49.09.

Insiders Place Their Bets

In other NIKE news, CFO Matthew Friend sold 2,463 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the transaction, the chief financial officer directly owned 82,165 shares of the company’s stock, valued at approximately $3,418,064. The trade was a 2.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 business’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $42.05, for a total transaction of $204,657.35. Following the transaction, the insider owned 57,436 shares in the company, valued at $2,415,183.80. The trade was a 7.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 14,974 shares of company stock valued at $600,126. Company insiders own 1.10% of the company’s stock.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Some investors see potential upside if Nike’s turnaround gains traction. Analyst price targets remain widely dispersed, including a $75 bull-case target, while the company’s roughly 4% dividend yield may provide support for income-oriented shareholders. Will Nike’s Stock Price Sink to $23? Here Are the Bear, Base, and Bull Cases Over the Next Year
• Positive Sentiment: Nike’s next earnings report, expected early next month, could provide a near-term catalyst if management shows improving demand, progress in China or better margins. The latest quarter’s $0.20 adjusted earnings per share surpassed the $0.11 consensus estimate.
• Neutral Sentiment: Recent insider activity is mixed: CEO Elliott Hill and other investors bought shares, but several executives have sold stock. Chief Legal Officer Robert Leinwand sold 3,646 shares worth approximately $137,000, a transaction representing about 4% of his prior stake. Nike’s Chief Legal Officer Sells 3,646 Shares as the Stock Falls to a 52-Week Low
• Negative Sentiment: Robert W. Baird downgraded NIKE (NKE) from “strong buy” to “hold,” adding to the negative analyst momentum.
• Negative Sentiment: Citigroup lowered its price target from $45 to $39 and maintained a “neutral” rating, signaling reduced confidence in the pace of recovery. Citigroup lowers Nike price target
• Negative Sentiment: Market commentary highlights persistent weak demand, China headwinds and broader Wall Street concern over Nike’s turnaround, all of which are weighing on investor sentiment. NKE Stock Slips Premarket: Nike Hits Historic Low As Turnaround Struggles Mount

Institutional Investors Weigh In On NIKE

Several hedge funds and other institutional investors have recently made changes to their positions in NKE. Scarborough Advisors LLC purchased a new position in shares of NIKE during the first quarter valued at approximately $25,000. Cornerstone Financial Management LLC bought a new stake in NIKE in the fourth quarter worth about $26,000. Sankala Group LLC bought a new stake in shares of NIKE in the 4th quarter worth approximately $26,000. Meeder Asset Management Inc. lifted its position in shares of NIKE by 108.4% during the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock valued at $29,000 after buying an additional 285 shares during the last quarter. Finally, Atlas Wealth LLC bought a new stake in NIKE in the 1st quarter valued at about $31,000. 64.25% of the stock is owned by institutional investors.

NIKE Stock Down 1.7%

The company has a market capitalization of $54.04 billion, a PE ratio of 17.40, a PEG ratio of 1.80 and a beta of 1.10. The stock’s 50 day moving average is $40.92 and its 200 day moving average is $45.00. 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 posted its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.09. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The firm had revenue of $10.97 billion during the quarter, compared to analyst estimates of $10.85 billion. During the same period last year, the company earned $0.14 earnings per share. The business’s revenue for the quarter was down 1.1% on a year-over-year basis. On average, sell-side analysts anticipate that NIKE, Inc. will post 1.74 EPS for the current fiscal year.

NIKE Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be issued a $0.41 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $1.64 annualized dividend and a dividend yield of 4.5%. NIKE’s dividend payout ratio is presently 78.47%.

About NIKE

NIKE, Inc is a global athletic footwear, apparel and equipment company headquartered near Beaverton, Oregon. The company designs, develops and markets products under the NIKE, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE’s offerings include athletic and casual footwear, sportswear, apparel, accessories and athletic equipment. The company distributes its products through company-owned retail stores, digital platforms, wholesale partners and independent distributors.