NIKE (NYSE:NKE) Hits New 12-Month Low – What’s Next?

NIKE, Inc. (NYSE:NKE) reached a new 52-week low during trading on Monday . The stock traded as low as $39.46 and last traded at $39.5090, with a volume of 9866331 shares trading hands. The stock had previously closed at $40.73.

Analyst Ratings Changes

Several equities analysts have recently weighed in on NKE shares. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $68.00 price target (down from $72.00) on shares of NIKE in a research note on Wednesday, July 29th. Wall Street Zen upgraded shares of NIKE from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Wells Fargo & Company decreased their target price on shares of NIKE from $45.00 to $40.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 1st. Evercore set a $46.00 price target on shares of NIKE and gave the company an “in-line” rating in a research note on Tuesday, June 23rd. Finally, Jefferies Financial Group cut their price target on shares of NIKE from $90.00 to $75.00 and set a “buy” rating on the stock in a research report on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eighteen have issued a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $53.53.

NIKE Trading Down 4.3%

The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. The firm has a fifty day moving average price of $42.90 and a 200 day moving average price of $48.61. The company has a market cap of $57.84 billion, a price-to-earnings ratio of 18.66, a P/E/G ratio of 1.81 and a beta of 1.11.

NIKE (NYSE:NKE) last issued its 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 net margin of 6.70% and a return on equity of 16.54%. The business had revenue of $10.97 billion for the quarter, compared to the consensus estimate of $10.85 billion. During the same period in the previous year, the company earned $0.14 earnings per share. The firm’s revenue for the quarter was down 1.1% on a year-over-year basis. As a group, equities analysts predict that NIKE, Inc. will post 1.74 EPS for the current fiscal year.

NIKE Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be paid a dividend of $0.41 per share. The ex-dividend date is Tuesday, September 1st. This represents a $1.64 annualized dividend and a dividend yield of 4.2%. NIKE’s payout ratio is currently 78.47%.

Insider Activity

In related news, EVP Philip Mccartney sold 17,398 shares of NIKE stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $46.18, for a total transaction of $803,439.64. Following the completion of the transaction, the executive vice president owned 53,133 shares in the company, valued at approximately $2,453,681.94. This trade represents a 24.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Matthew Friend sold 2,463 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the transaction, the chief financial officer directly owned 82,165 shares in the company, valued at approximately $3,418,064. This trade represents a 2.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 26,142 shares of company stock valued at $1,169,380 over the last quarter. 1.10% of the stock is currently owned by company insiders.

Institutional Trading of NIKE

Hedge funds have recently made changes to their positions in the business. Scarborough Advisors LLC acquired a new stake in NIKE during the 1st quarter valued at $25,000. Cornerstone Financial Management LLC bought a new position in shares of NIKE in the fourth quarter valued at about $26,000. Sankala Group LLC acquired a new stake in shares of NIKE during the 4th quarter worth about $26,000. Meeder Asset Management Inc. lifted its stake in shares of NIKE by 108.4% during the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock worth $29,000 after buying an additional 285 shares during the last quarter. Finally, J.Safra Asset Management Corp bought a new stake in shares of NIKE during the 4th quarter worth about $29,000. 64.25% of the stock is owned by institutional investors and hedge funds.

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).