NIKE (NYSE:NKE) Trading Down 2.9% – Should You Sell?

NIKE, Inc. (NYSE:NKE)’s share price fell 2.9% during trading on Tuesday . The company traded as low as $62.88 and last traded at $63.1080. 13,488,220 shares were traded during mid-day trading, a decline of 20% from the average session volume of 16,805,730 shares. The stock had previously closed at $64.99.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: BTIG reaffirmed a “buy” rating and a $100 price target on NKE, signaling strong upside from some sell‑side analysts and providing a counterweight to the negative headlines. BTIG Buy Rating
• Positive Sentiment: Insider buying noted in recent coverage (CEO/management purchases referenced by retail commentary) is supporting the view that leadership is confident in the turnaround, which can help investor sentiment. Is It a Buy?
• Neutral Sentiment: Value comparisons with peers (Adidas/ADDYY) are getting attention as investors reassess NKE’s valuation vs. competitors; these pieces frame NKE as either a relative value or show headroom depending on metrics used. ADDYY or NKE Value Comparison
• Neutral Sentiment: Fundamentals reminder: Nike beat consensus in its December quarter on EPS and revenue, but growth remains modest — the recent beat provides some support but hasn’t fully offset execution concerns. (Company quarterly results Dec. 18)
• Negative Sentiment: Nike is cutting roughly 775 U.S. distribution‑center jobs as it accelerates automation; while intended to boost long‑term margins, the layoffs raise short‑term disruption and execution risk and are weighing on sentiment. Reuters: 775 Jobs Cut
• Negative Sentiment: Coverage highlights the layoffs’ operational implications and investor nervousness — stories note the cuts affect Tennessee and Mississippi distribution centers and represent about 1% of the workforce. WSJ: Layoffs Coverage
• Negative Sentiment: Nike is investigating claims of a large data leak by a ransomware group; a potential breach raises near‑term legal, remediation and reputational costs and is adding to downside pressure. Reuters: Data Breach Investigation

Analysts Set New Price Targets

Several research firms have recently weighed in on NKE. Morgan Stanley set a $72.00 price objective on NIKE and gave the company a “positive” rating in a research report on Wednesday, October 1st. BTIG Research reiterated a “buy” rating and set a $100.00 target price on shares of NIKE in a research note on Tuesday. Robert W. Baird decreased their price target on shares of NIKE from $93.00 to $85.00 and set an “outperform” rating on the stock in a research report on Friday, December 19th. Daiwa Capital Markets dropped their price objective on shares of NIKE from $75.00 to $61.00 in a report on Tuesday, December 23rd. Finally, Deutsche Bank Aktiengesellschaft set a $67.00 target price on shares of NIKE in a research note on Thursday, January 8th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $74.65.

NIKE Price Performance

The stock has a market cap of $93.42 billion, a price-to-earnings ratio of 37.12, a price-to-earnings-growth ratio of 3.38 and a beta of 1.28. The company has a quick ratio of 1.40, a current ratio of 2.06 and a debt-to-equity ratio of 0.50. The company’s 50-day moving average is $63.96 and its 200-day moving average is $68.92.

NIKE (NYSE:NKE) last released its quarterly earnings data on Thursday, December 18th. The footwear maker reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.37 by $0.16. The company had revenue of $12.43 billion for the quarter, compared to the consensus estimate of $12.19 billion. NIKE had a return on equity of 18.43% and a net margin of 5.43%.The company’s quarterly revenue was up .6% on a year-over-year basis. During the same period in the previous year, the business earned $0.78 earnings per share. Equities research analysts expect that NIKE, Inc. will post 2.05 earnings per share for the current fiscal year.

NIKE Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 2nd. Stockholders of record on Monday, December 1st were paid a $0.41 dividend. The ex-dividend date was Monday, December 1st. This represents a $1.64 annualized dividend and a dividend yield of 2.6%. This is a boost from NIKE’s previous quarterly dividend of $0.40. NIKE’s dividend payout ratio is presently 96.47%.

Insiders Place Their Bets

In other news, Director Timothy D. Cook bought 50,000 shares of the company’s stock in a transaction that occurred on Monday, December 22nd. The stock was acquired at an average price of $58.97 per share, for a total transaction of $2,948,500.00. Following the transaction, the director directly owned 105,480 shares of the company’s stock, valued at $6,220,155.60. This trade represents a 90.12% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Robert Holmes Swan purchased 8,691 shares of NIKE stock in a transaction on Monday, December 22nd. The stock was purchased at an average price of $57.54 per share, for a total transaction of $500,080.14. Following the completion of the transaction, the director owned 43,293 shares of the company’s stock, valued at approximately $2,491,079.22. This represents a 25.12% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased 91,229 shares of company stock worth $5,452,640 in the last quarter. 0.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On NIKE

Large investors have recently bought and sold shares of the business. Mascoma Wealth Management LLC bought a new stake in shares of NIKE during the second quarter worth $26,000. Halbert Hargrove Global Advisors LLC lifted its position in NIKE by 952.6% during the 2nd quarter. Halbert Hargrove Global Advisors LLC now owns 400 shares of the footwear maker’s stock worth $28,000 after buying an additional 362 shares in the last quarter. Twin Peaks Wealth Advisors LLC bought a new stake in NIKE during the 2nd quarter worth about $31,000. Guerra Advisors Inc acquired a new stake in NIKE in the 3rd quarter valued at about $34,000. Finally, Gordian Capital Singapore Pte Ltd acquired a new stake in NIKE in the 3rd quarter valued at about $35,000. 64.25% of the stock is currently owned by institutional investors.

About NIKE

Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).