HSBC Has Lowered Expectations for NIKE (NYSE:NKE) Stock Price

NIKE (NYSE:NKE) had its target price cut by stock analysts at HSBC from $48.00 to $40.00 in a note issued to investors on Monday, MarketBeat Ratings reports. The firm presently has a “hold” rating on the footwear maker’s stock. HSBC’s price target indicates a potential upside of 11.56% from the company’s previous close.

Several other brokerages also recently weighed in on NKE. Guggenheim reissued a “buy” rating and issued a $60.00 target price (down from $74.00) on shares of NIKE in a research note on Wednesday, July 1st. Jefferies Financial Group reaffirmed a “buy” rating on shares of NIKE in a research note on Monday. Robert W. Baird set a $44.00 price target on shares of NIKE and gave the stock a “neutral” rating in a report on Monday, September 14th. Royal Bank Of Canada reissued a “neutral” rating on shares of NIKE in a research report on Tuesday, September 22nd. Finally, Stifel Nicolaus set a $40.00 price objective on shares of NIKE and gave the company a “hold” rating in a research note on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-one have assigned a Hold rating and seven have assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $46.62.

NIKE Price Performance

Shares of NYSE:NKE opened at $35.86 on Monday. The business’s fifty day moving average price is $39.29 and its two-hundred day moving average price is $43.20. The stock has a market cap of $53.19 billion, a PE ratio of 17.16, a price-to-earnings-growth ratio of 2.03 and a beta of 1.10. 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 one year low of $35.22 and a one year high of $76.97.

NIKE (NYSE:NKE) last released its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share 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 company had revenue of $10.97 billion during the quarter, compared to analysts’ expectations of $10.85 billion. During the same period in the previous year, the firm posted $0.14 earnings per share. The business’s revenue for the quarter was down 1.1% compared to the same quarter last year. On average, analysts forecast that NIKE will post 1.65 EPS for the current fiscal year.

Insider Transactions at NIKE

In related news, insider Amy Montagne sold 4,867 shares of NIKE stock in a transaction on Friday, August 7th. The stock was sold at an average price of $42.05, for a total value of $204,657.35. Following the transaction, the insider 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Philip McCartney sold 2,559 shares of the business’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $96,192.81. Following the sale, the executive vice president directly owned 78,121 shares of the company’s stock, valued at approximately $2,936,568.39. This trade represents a 3.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 14,974 shares of company stock valued at $600,126. Corporate insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On NIKE

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

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Jefferies expects Nike to deliver a first-quarter earnings beat, citing stabilization in North America and wholesale, better inventory levels and earlier gross-margin improvement. The firm also sees November’s investor day as a possible turnaround catalyst. Nike set for Q1 beat as margins improve, Jefferies says
• Positive Sentiment: New footwear launches and Nike’s “Sport Offense” strategy could help rebuild Sportswear momentum, although digital weakness and discounting remain obstacles. Will New Footwear Launches Help Nike Rebuild Sportswear Momentum?
• Positive Sentiment: Some bullish investors argue that the stock’s steep decline has already priced in substantial problems, creating potential long-term upside if management successfully restores growth, margins and brand momentum. Options positioning was also described as relatively optimistic ahead of earnings. Nike Stock Is at Rock Bottom. It Can Double From Here, Analyst Says.
• Neutral Sentiment: Investors are focused on Thursday’s earnings report, with the size of the implied move elevated because the results and management’s guidance could reset expectations for the turnaround. Key items include China sales, wholesale demand, inventories, promotions and gross margins. Here’s How Much Nike Stock Is Expected to Move After Earnings
• Neutral Sentiment: Nike’s appointment of Alexandre Arnault, a senior LVMH executive, to its board adds luxury-brand and international consumer expertise, but the financial impact is uncertain. Nike Brings Alexandre Arnault Onto Its Board
• Negative Sentiment: Analysts continue cutting targets ahead of earnings: RBC lowered its target to $40, while Evercore cut to $34, Deutsche Bank to $37, HSBC to $40 and Piper Sandler to $38. The revisions reflect expectations for a slower recovery and leave many firms at neutral or hold ratings.
• Negative Sentiment: Weak Chinese demand, retailer order pullbacks and intense competition are weighing on sales. Nike is overhauling its China strategy to reduce discounting and rebuild its premium positioning, but the market remains a major turnaround risk. Nike Overhauls Its China Strategy
• Negative Sentiment: Shares have fallen sharply and are near a 12- to 13-year low, while analysts warn that promotional pressure, digital weakness, margin compression and a shrinking competitive advantage could make the recovery more prolonged. Nike Stock Hovers Near Annual Lows Amid Analyst Downgrades

About NIKE

NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.

The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.