“We raise our PT to $78 from $70 to reflect 1) our continued confidence on Nike’s innovation pipeline impact on revenue acceleration, 2) continued GM improvement, and 3) continued strength in International combined with an expected inflection in NA revenue. Total revenue beat our expectations in 3Q, driven by a 19% increase in reported Int’l revenue, an acceleration from 2Q (+14%). Total Nike, Inc. revenue grew 7% (+3% in cc) to $9.0bn, $173mn above our estimate. EMEA (+19% reported; +9% in CC), Greater China (+24% reported; +19% in CC), and APLA (+13% reported; +11% in CC) revenue all were better than expected as NKE continues to display strong Int’l growth, showcasing the power of NKE’s Consumer Direct Offense. In particular, we highlight the strength in China and note favorable macro trends including acceleration in consumer spending/sports participation. Nike Basketball was strong in 3Q growing +DD in Footwear/Apparel across geographies.”,” the firm’s analyst commented.
NKE has been the subject of a number of other reports. Goldman Sachs set a $59.00 price target on Nike and gave the company a neutral rating in a research note on Thursday, December 14th. HSBC lowered Nike from a buy rating to a hold rating and increased their price target for the company from $58.95 to $62.00 in a research note on Tuesday, November 28th. Buckingham Research began coverage on Nike in a research note on Sunday, December 31st. They set a buy rating and a $72.00 price target for the company. B. Riley increased their price target on Nike from $53.00 to $61.00 and gave the company a neutral rating in a research note on Friday, December 22nd. Finally, Deutsche Bank set a $76.00 price target on Nike and gave the company a buy rating in a research note on Thursday, December 14th. Three equities research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and twenty-three have given a buy rating to the stock. Nike currently has an average rating of Hold and an average price target of $68.07.
Nike (NYSE:NKE) last announced its quarterly earnings results on Thursday, March 22nd. The footwear maker reported $0.68 EPS for the quarter, beating analysts’ consensus estimates of $0.53 by $0.15. Nike had a return on equity of 31.81% and a net margin of 5.11%. The company had revenue of $8.98 billion during the quarter, compared to analyst estimates of $8.85 billion. During the same period in the prior year, the company earned $0.68 earnings per share. The firm’s revenue was up 6.5% on a year-over-year basis. sell-side analysts predict that Nike will post 2.25 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 2nd. Shareholders of record on Monday, March 5th will be issued a dividend of $0.20 per share. The ex-dividend date is Friday, March 2nd. This represents a $0.80 annualized dividend and a yield of 1.24%. Nike’s payout ratio is currently 75.47%.
In other Nike news, insider Eric D. Sprunk sold 226,040 shares of the firm’s stock in a transaction on Wednesday, December 27th. The stock was sold at an average price of $63.10, for a total transaction of $14,263,124.00. Following the transaction, the insider now directly owns 165,591 shares in the company, valued at approximately $10,448,792.10. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP John F. Slusher sold 100,000 shares of the firm’s stock in a transaction on Tuesday, January 2nd. The stock was sold at an average price of $63.09, for a total value of $6,309,000.00. Following the transaction, the executive vice president now owns 268,169 shares in the company, valued at $16,918,782.21. The disclosure for this sale can be found here. Insiders have sold a total of 912,802 shares of company stock worth $58,993,107 over the last 90 days. 3.90% of the stock is currently owned by company insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Capital Research Global Investors increased its holdings in Nike by 10.4% during the 2nd quarter. Capital Research Global Investors now owns 24,135,396 shares of the footwear maker’s stock worth $1,423,988,000 after purchasing an additional 2,274,869 shares during the period. Capital World Investors increased its holdings in Nike by 58.7% during the 2nd quarter. Capital World Investors now owns 21,779,409 shares of the footwear maker’s stock worth $1,284,985,000 after purchasing an additional 8,058,601 shares during the period. Janus Henderson Group PLC boosted its position in Nike by 4,252.6% during the 2nd quarter. Janus Henderson Group PLC now owns 16,619,387 shares of the footwear maker’s stock valued at $980,539,000 after acquiring an additional 16,237,557 shares in the last quarter. Geode Capital Management LLC boosted its position in Nike by 2.4% during the 4th quarter. Geode Capital Management LLC now owns 14,472,375 shares of the footwear maker’s stock valued at $903,432,000 after acquiring an additional 336,633 shares in the last quarter. Finally, Edgewood Management LLC boosted its position in Nike by 15.7% during the 3rd quarter. Edgewood Management LLC now owns 14,245,826 shares of the footwear maker’s stock valued at $738,646,000 after acquiring an additional 1,936,811 shares in the last quarter. Institutional investors own 65.65% of the company’s stock.
NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. It offers NIKE brand products in nine categories: running, NIKE basketball, the Jordan brand, football, men's training, women's training, action sports, sportswear, and golf.
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