NIKE (NYSE:NKE) Lowered to “Hold” Rating by Wells Fargo & Company

NIKE (NYSE:NKE) was downgraded by investment analysts at Wells Fargo & Company from a “strong-buy” rating to a “hold” rating in a research note issued on Friday,Zacks.com reports.

Several other analysts have also issued reports on the company. Evercore reduced their target price on NIKE from $69.00 to $57.00 and set an “outperform” rating on the stock in a report on Wednesday, April 1st. Weiss Ratings lowered shares of NIKE from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday. The Goldman Sachs Group reiterated a “neutral” rating and set a $52.00 price target (down from $76.00) on shares of NIKE in a research report on Wednesday, April 1st. Robert W. Baird reduced their price target on shares of NIKE from $85.00 to $70.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 1st. Finally, DZ Bank reiterated a “buy” rating on shares of NIKE in a research report on Tuesday, April 21st. Sixteen analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $62.04.

NIKE Stock Performance

NKE opened at $44.10 on Friday. The firm has a market cap of $65.31 billion, a P/E ratio of 29.21, a price-to-earnings-growth ratio of 2.36 and a beta of 1.12. NIKE has a 52-week low of $42.09 and a 52-week high of $80.17. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.45 and a current ratio of 2.14. The business’s fifty day moving average is $50.16 and its 200-day moving average is $59.14.

NIKE (NYSE:NKE) last released its earnings results on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.06. The company had revenue of $11.28 billion for the quarter, compared to analyst estimates of $11.23 billion. NIKE had a return on equity of 16.41% and a net margin of 4.84%.NIKE’s quarterly revenue was up .1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.54 EPS. Sell-side analysts expect that NIKE will post 1.51 EPS for the current fiscal year.

Insider Buying and Selling at NIKE

In other NIKE news, Director Robert Holmes Swan purchased 11,781 shares of the business’s stock in a transaction dated Tuesday, April 7th. The shares were bought at an average price of $42.44 per share, for a total transaction of $499,985.64. Following the completion of the acquisition, the director owned 55,074 shares in the company, valued at approximately $2,337,340.56. This trade represents a 27.21% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Elliott Hill purchased 23,660 shares of the business’s stock in a transaction dated Monday, April 13th. The shares were acquired at an average price of $42.27 per share, for a total transaction of $1,000,108.20. Following the acquisition, the chief executive officer owned 265,247 shares of the company’s stock, valued at $11,211,990.69. This trade represents a 9.79% increase in their position. The SEC filing for this purchase provides additional information. Insiders have purchased a total of 64,441 shares of company stock worth $2,734,204 in the last three months. 0.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NIKE

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Scarborough Advisors LLC acquired a new position in shares of NIKE in the first quarter worth approximately $25,000. Cornerstone Financial Management LLC acquired a new position in shares of NIKE in the fourth quarter worth approximately $26,000. Sankala Group LLC acquired a new position in shares of NIKE in the fourth quarter worth approximately $26,000. Meeder Asset Management Inc. lifted its stake in shares of NIKE by 108.4% in the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock worth $29,000 after acquiring an additional 285 shares during the period. Finally, J.Safra Asset Management Corp acquired a new position in shares of NIKE in the fourth quarter worth approximately $29,000. 64.25% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Negative Sentiment: Wells Fargo downgraded NIKE to Equal Weight from Overweight and cut its price target to $45 from $55, saying a GLP-1-driven shift in consumer behavior could become a new headwind for athletic wear demand. Article Title
• Negative Sentiment: Reuters reported that bets against NIKE have surged, adding to pressure on CEO Elliott Hill to stabilize performance and restore investor confidence. Article Title
• Negative Sentiment: NIKE is also facing ongoing scrutiny over weak earnings, revenue pressure, and restructuring costs as it moves ahead with nearly 1,400 job cuts tied to its “Win Now” overhaul. Article Title
• Neutral Sentiment: NIKE’s board declared a quarterly dividend of $0.41 per share, which supports the company’s shareholder-return story but does not offset the broader concerns around growth and execution. Article Title
• Neutral Sentiment: Several articles note increased investor attention and valuation-reset chatter, but these appear to be more reflective of market interest than a clear fundamental catalyst. Article Title

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).