NIKE’s (NKE) “Neutral” Rating Reaffirmed at Royal Bank Of Canada

Royal Bank Of Canada reaffirmed their neutral rating on shares of NIKE (NYSE:NKE) in a research note released on Tuesday morning.

A number of other equities analysts also recently commented on NKE. Sanford C. Bernstein reissued an “outperform” rating and issued a $68.00 price objective (down from $72.00) on shares of NIKE in a research note on Wednesday, July 29th. Robert W. Baird set a $44.00 target price on NIKE and gave the company a “neutral” rating in a research report on Monday, September 14th. Zacks Research upgraded NIKE from a “strong sell” rating to a “hold” rating in a report on Wednesday, August 19th. Morgan Stanley set a $31.00 price target on NIKE and gave the stock an “underweight” rating in a research report on Thursday, September 10th. Finally, JPMorgan Chase & Co. restated a “sell” rating on shares of NIKE in a research note on Monday, August 31st. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty-two have given a Hold rating and six have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $48.41.

NIKE Stock Down 0.7%

NYSE:NKE opened at $35.81 on Tuesday. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36. NIKE has a 1-year low of $35.35 and a 1-year high of $76.97. The company has a 50-day moving average of $39.91 and a 200 day moving average of $43.78. The firm has a market cap of $53.12 billion, a PE ratio of 17.17, a price-to-earnings-growth ratio of 1.84 and a beta of 1.10.

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 business had revenue of $10.97 billion during the quarter, compared to analyst estimates of $10.85 billion. During the same quarter in the previous year, the business posted $0.14 EPS. The company’s quarterly revenue was down 1.1% compared to the same quarter last year. As a group, research analysts anticipate that NIKE will post 1.67 EPS for the current fiscal year.

NIKE Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be given a $0.41 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.6%. NIKE’s dividend payout ratio (DPR) is presently 78.47%.

Insiders Place Their Bets

In other NIKE news, insider Amy Montagne sold 4,867 shares of the stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $42.05, for a total value of $204,657.35. Following the completion of the sale, the insider directly owned 57,436 shares in the company, valued at approximately $2,415,183.80. This trade represents a 7.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Matthew Friend sold 2,463 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the completion of the sale, the chief financial officer directly owned 82,165 shares of the company’s stock, valued at approximately $3,418,064. This represents a 2.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,974 shares of company stock valued at $600,126 in the last 90 days. Corporate insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On NIKE

Several hedge funds have recently modified their holdings of the stock. State Street Corp raised its holdings in shares of NIKE by 6.8% in the second quarter. State Street Corp now owns 63,598,789 shares of the footwear maker’s stock worth $2,636,104,000 after buying an additional 4,052,428 shares during the last quarter. Capital World Investors increased its position in shares of NIKE by 16.2% in the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker’s stock valued at $3,126,246,000 after acquiring an additional 6,830,938 shares during the period. J. Stern & Co. LLP raised its stake in NIKE by 49,010.4% in the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker’s stock worth $3,061,555,000 after acquiring an additional 47,956,692 shares during the last quarter. Geode Capital Management LLC raised its stake in NIKE by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker’s stock worth $1,677,251,000 after acquiring an additional 233,925 shares during the last quarter. Finally, Norges Bank acquired a new stake in NIKE during the 4th quarter worth about $829,956,000. Institutional investors and hedge funds own 64.25% of the company’s stock.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Turnaround support from a major retailer: JD Sports’ finance chief said Nike is taking the right steps and that a turnaround is ultimately a matter of time. This offers some reassurance that Nike’s brand remains strong among wholesale partners. Reuters article
• Positive Sentiment: Some analysts see substantial upside: BTIG reaffirmed its buy rating and assigned a $55 price target, implying significant appreciation from the current share price. Benchmark also upgraded Nike to hold, reducing the risk of further outright downgrades. Analyst and retail partner coverage
• Neutral Sentiment: Investors are awaiting earnings: Nike reports fiscal first-quarter results after the close on October 1. The report is expected to clarify whether improving gross margins and momentum in performance footwear can offset weakness in the lifestyle category. Benzinga earnings preview
• Negative Sentiment: Cautious earnings expectations: Analysts expect lower first-quarter revenue and earnings, while recent forecast changes include multiple price-target reductions. Barclays cut its target to $48, and Stifel reduced its target to $40, reflecting concerns about demand and the pace of recovery. Yahoo Finance earnings coverage
• Negative Sentiment: Competitive and brand risks: Kylian Mbappé ended his long-standing relationship with Nike and signed with On Holding, highlighting intensifying competition for high-profile athletes and football visibility. Insider Monkey article

NIKE Company Profile

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.