NIKE (NYSE:NKE) Lowered to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of NIKE (NYSE:NKE) from a buy rating to a hold rating in a research note issued to investors on Tuesday, Zacks.com reports. Zacks Investment Research currently has $164.00 target price on the footwear maker’s stock.

According to Zacks, “NIKE’s shares rallied in the past three months on blowout fourth-quarter fiscal 2021 results and an upbeat view for fiscal 2022 and beyond, the stock may be affected by the ongoing supply chain headwinds in the near term. NIKE has been facing increased uncertainty from manufacturing disruptions in Vietnam due to a new wave of COVID-19 outbreaks in the region, along with industry-wide supply-chain disruptions. Continued impacts from the adverse market dynamics in Greater China and higher SG&A expense also remain headwinds. However, strong customer connections through compelling brand experiences across NIKE Jordan and Converse, product innovation and expanding digital advantage have been key drivers. The return of sports activity, reopening of stores, wholesale business strength and digital growth have been aiding results.”

A number of other research firms have also recently weighed in on NKE. BMO Capital Markets raised their price target on NIKE from $160.00 to $174.00 and gave the company an outperform rating in a research note on Friday, June 25th. UBS Group set a $185.00 price target on NIKE in a research note on Thursday, September 9th. Oppenheimer raised their price target on NIKE from $150.00 to $195.00 and gave the company an outperform rating in a research note on Friday, July 23rd. Piper Sandler lifted their target price on NIKE from $170.00 to $174.00 and gave the stock an overweight rating in a research report on Friday, June 25th. Finally, Stifel Nicolaus reiterated a buy rating and set a $213.00 target price on shares of NIKE in a research report on Friday, September 17th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and twenty-nine have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of Buy and a consensus price target of $173.56.

NYSE:NKE opened at $155.02 on Tuesday. The firm has a market cap of $245.21 billion, a PE ratio of 43.55, a price-to-earnings-growth ratio of 2.49 and a beta of 0.87. The stock has a fifty day moving average price of $165.28 and a 200 day moving average price of $147.38. NIKE has a 12-month low of $112.85 and a 12-month high of $174.38. The company has a current ratio of 2.72, a quick ratio of 2.01 and a debt-to-equity ratio of 0.74.

NIKE (NYSE:NKE) last posted its quarterly earnings results on Wednesday, June 23rd. The footwear maker reported $0.93 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.51 by $0.42. NIKE had a return on equity of 51.41% and a net margin of 12.86%. The company had revenue of $12.30 billion for the quarter, compared to analysts’ expectations of $11.02 billion. During the same period last year, the firm earned ($0.51) earnings per share. NIKE’s quarterly revenue was up 94.8% on a year-over-year basis. Equities analysts forecast that NIKE will post 4.3 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, October 1st. Investors of record on Monday, August 30th will be paid a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a yield of 0.71%. The ex-dividend date of this dividend is Friday, August 27th. NIKE’s payout ratio is currently 30.90%.

In other NIKE news, CAO Hilary K. Krane sold 21,500 shares of the business’s stock in a transaction on Friday, June 25th. The stock was sold at an average price of $153.16, for a total value of $3,292,940.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Matthew Friend sold 43,000 shares of the company’s stock in a transaction on Tuesday, August 3rd. The stock was sold at an average price of $170.00, for a total value of $7,310,000.00. The disclosure for this sale can be found here. Insiders sold a total of 379,671 shares of company stock valued at $60,634,427 over the last quarter. 3.70% of the stock is currently owned by insiders.

A number of institutional investors have recently made changes to their positions in NKE. FFT Wealth Management LLC purchased a new stake in NIKE during the 2nd quarter worth $26,000. Princeton Global Asset Management LLC boosted its position in NIKE by 39.8% in the 2nd quarter. Princeton Global Asset Management LLC now owns 246 shares of the footwear maker’s stock valued at $38,000 after buying an additional 70 shares during the last quarter. Rockbridge Investment Management LCC boosted its position in NIKE by 43.9% in the 2nd quarter. Rockbridge Investment Management LCC now owns 246 shares of the footwear maker’s stock valued at $38,000 after buying an additional 75 shares during the last quarter. Financial Insights Inc. purchased a new position in NIKE in the 2nd quarter valued at about $38,000. Finally, Okabena Investment Services Inc. purchased a new position in NIKE in the 2nd quarter valued at about $38,000. 64.45% of the stock is owned by hedge funds and other institutional investors.

NIKE Company Profile

NIKE, Inc engages in the design, development, marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. It operates through the following segments: North America; Europe, Middle East & Africa; Greater China; Asia Pacific & Latin America; Global Brand Divisions; Converse; and Corporate.

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