NIKE (NYSE:NKE) Stock Rating Lowered by Berenberg Bank

NIKE (NYSE:NKE) was downgraded by stock analysts at Berenberg Bank from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday, Zacks reports.

Other equities analysts also recently issued research reports about the stock. The Goldman Sachs Group reiterated a “neutral” rating and issued a $30.00 price target (down from $38.00) on shares of NIKE in a report on Friday, October 2nd. DZ Bank downgraded shares of NIKE from a “strong-buy” rating to a “strong sell” rating in a report on Friday, October 2nd. Zacks Research downgraded shares of NIKE from a “hold” rating to a “strong sell” rating in a report on Thursday, October 1st. Rothschild & Co Redburn cut their price objective on shares of NIKE from $45.00 to $37.00 and set a “sell” rating on the stock in a research note on Friday, July 17th. Finally, Jefferies Financial Group set a $60.00 target price on shares of NIKE in a report on Friday, October 2nd. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twenty-one have issued a Hold rating and ten have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $41.19.

NIKE Stock Down 0.7%

NIKE stock opened at $34.36 on Tuesday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.39 and a current ratio of 2.07. The business’s 50-day simple moving average is $38.37 and its two-hundred day simple moving average is $42.38. The company has a market cap of $50.98 billion, a PE ratio of 16.52, a PEG ratio of 3.04 and a beta of 1.09. NIKE has a fifty-two week low of $31.97 and a fifty-two week high of $70.44.

NIKE (NYSE:NKE) last announced its quarterly earnings data on Thursday, October 1st. The footwear maker reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.05. NIKE had a return on equity of 15.94% and a net margin of 6.74%.The firm had revenue of $11.21 billion during the quarter, compared to analysts’ expectations of $11.32 billion. During the same period last year, the business posted $0.49 earnings per share. The company’s revenue for the quarter was down 4.3% compared to the same quarter last year. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. Equities analysts anticipate that NIKE will post 1.26 EPS for the current year.

Insider Activity

In other news, CFO Matthew Friend sold 2,463 shares of NIKE stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total transaction of $102,460.80. Following the completion of the transaction, the chief financial officer directly owned 82,165 shares of the company’s stock, valued at $3,418,064. The trade was a 2.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Venkatesh Alagirisamy sold 3,671 shares of the business’s stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total transaction of $137,992.89. Following the completion of the transaction, the chief operating officer owned 104,862 shares of the company’s stock, valued at approximately $3,941,762.58. This represents a 3.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,974 shares of company stock worth $600,126 over the last 90 days. Company insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of NKE. State Street Corp increased its stake in shares of NIKE by 2.2% in the 4th quarter. State Street Corp now owns 59,315,606 shares of the footwear maker’s stock valued at $3,802,807,000 after purchasing an additional 1,275,494 shares in the last quarter. J. Stern & Co. LLP boosted its position in NIKE by 49,010.4% during the fourth quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker’s stock worth $3,061,555,000 after purchasing an additional 47,956,692 shares in the last quarter. Janus Henderson Group PLC boosted its position in NIKE by 12.5% during the fourth quarter. Janus Henderson Group PLC now owns 7,887,609 shares of the footwear maker’s stock worth $502,537,000 after purchasing an additional 874,662 shares in the last quarter. Flossbach Von Storch SE acquired a new stake in NIKE in the second quarter valued at approximately $488,714,000. Finally, Van ECK Associates Corp grew its holdings in NIKE by 3.2% in the fourth quarter. Van ECK Associates Corp now owns 5,487,642 shares of the footwear maker’s stock valued at $349,618,000 after purchasing an additional 172,080 shares during the period. Institutional investors and hedge funds own 64.25% of the company’s stock.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Profitability showed improvement. Fiscal Q1 earnings were $0.48 per share, ahead of the $0.43 consensus estimate. Profit margins rose despite a 4.3% year-over-year revenue decline, suggesting tighter inventory, lower discounting and supply-chain improvements are beginning to help. Nike Latest Earnings
• Positive Sentiment: Performance categories are a potential bright spot. Running and basketball products are reportedly gaining traction, while management continues to emphasize higher-quality products and a more disciplined supply chain. This could support a longer-term recovery if momentum expands beyond performance footwear. Nike Is Improving
• Neutral Sentiment: The elevated dividend yield is attracting turnaround investors but raises sustainability concerns. Nike’s yield has reached a record 4.8% as the stock has declined. Investors view the payout and depressed valuation as potential upside catalysts, but the yield could also reflect expectations for prolonged earnings weakness. Nike Dividend Yield Analysis
• Neutral Sentiment: A possible Formula One return is a speculative brand opportunity. Nike could return to Formula One after a 24-year absence, potentially creating marketing and licensing benefits, though no confirmed deal or material financial impact has been announced. Nike Formula One Return
• Negative Sentiment: Revenue and the outlook remain the main problems. The earnings beat was overshadowed by revenue below expectations, declining demand and weak forward guidance. China remains pressured by local “guochao” brands, while North American growth has not fully offset weakness in Nike Direct and major lifestyle franchises. Investors Weigh Nike Following Q1 Results
• Negative Sentiment: Analyst and media sentiment has deteriorated. Berenberg downgraded Nike to “strong sell” and cut its price target from $49 to $27.50, arguing that competitive and market-structure pressures may be difficult to reverse. Commentators also question whether the stock is cheap enough and warn that the turnaround could take years. Nike Stock Downgrade

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.