BMO Capital Markets Upgrades NIKE (NYSE:NKE) to “Strong Sell”

NIKE (NYSE:NKE) was upgraded by analysts at BMO Capital Markets to a “strong sell” rating in a research note issued on Tuesday, Zacks reports.

Several other equities research analysts have also issued reports on the stock. Deutsche Bank Aktiengesellschaft raised their target price on shares of NIKE from $43.00 to $45.00 and gave the stock a “hold” rating in a report on Friday, July 17th. Barclays cut their price target on shares of NIKE from $67.00 to $52.00 and set an “overweight” rating on the stock in a report on Wednesday, July 1st. Wall Street Zen raised shares of NIKE from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. China Renaissance decreased their price objective on shares of NIKE from $50.30 to $47.30 and set a “hold” rating for the company in a research note on Thursday, July 2nd. Finally, Sanford C. Bernstein restated an “outperform” rating and set a $68.00 target price (down from $72.00) on shares of NIKE in a research report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty have given a Hold rating and six have assigned a Sell rating to the stock. Based on data from MarketBeat, NIKE presently has a consensus rating of “Hold” and an average target price of $50.12.

NIKE Stock Performance

NYSE:NKE opened at $36.57 on Tuesday. The firm has a market capitalization of $54.25 billion, a PE ratio of 17.50, a PEG ratio of 1.83 and a beta of 1.10. The stock’s fifty day moving average is $41.19 and its 200 day moving average is $45.38. NIKE has a fifty-two week low of $36.55 and a fifty-two week high of $76.97. 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 (NYSE:NKE) last posted its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping the consensus estimate of $0.11 by $0.09. The company had revenue of $10.97 billion during the quarter, compared to analyst estimates of $10.85 billion. NIKE had a net margin of 6.70% and a return on equity of 16.54%. NIKE’s quarterly revenue was down 1.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.14 earnings per share. On average, sell-side analysts anticipate that NIKE will post 1.74 earnings per share for the current year.

Insider Activity at NIKE

In other NIKE news, 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 completion of the sale, the executive vice president directly owned 78,121 shares of the company’s stock, valued at $2,936,568.39. The trade was a 3.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the company’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $42.05, for a total transaction of $204,657.35. Following the completion of the transaction, the insider owned 57,436 shares in the company, valued at $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 14,974 shares of company stock worth $600,126. 1.10% of the stock is currently owned by corporate insiders.

Institutional Trading of NIKE

Several institutional investors and hedge funds have recently modified their holdings of NKE. California State Teachers Retirement System grew its stake in NIKE by 4,052.9% in the second quarter. California State Teachers Retirement System now owns 75,611,801 shares of the footwear maker’s stock worth $3,103,864,000 after purchasing an additional 73,791,103 shares in the last quarter. State Street Corp raised its position in NIKE by 2.2% during 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. Capital World Investors raised its position in NIKE by 16.2% during the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker’s stock valued at $3,126,246,000 after purchasing an additional 6,830,938 shares in the last quarter. J. Stern & Co. LLP lifted its holdings in shares of NIKE by 49,010.4% in the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker’s stock worth $3,061,555,000 after buying an additional 47,956,692 shares during the period. Finally, Geode Capital Management LLC grew its position in shares of NIKE by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker’s stock worth $1,677,251,000 after buying an additional 233,925 shares in the last quarter. Institutional investors own 64.25% of the company’s stock.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Neutral Sentiment: Shareholders approved an expanded employee stock purchase plan adopted by NIKE’s board in July. The plan could support employee retention, although the potential for additional share issuance may limit its benefit to existing investors. Nike Shareholders Approve Expanded Employee Stock Purchase Plan
• Neutral Sentiment: Some commentary argues that NIKE’s underlying business is not fundamentally broken and that its depressed valuation and dividend yield could appeal to long-term investors, though a turnaround remains necessary. Nike: The Sentiment Is Bleak, But The Underlying Business Is Not Broken
• Negative Sentiment: Morgan Stanley warned that the pain may not be over, citing persistent operating weakness, disappointing share performance and NIKE’s imminent removal from the S&P 100. Morgan Stanley Says the Pain May Not Be Over Yet
• Negative Sentiment: BMO initiated coverage with an Underperform rating, pointing to challenges facing NIKE and the broader athletic-apparel market. The new bearish call adds to pressure on the stock. BMO Says Sell Nike Stock
• Negative Sentiment: NIKE is set to lose its S&P 100 membership after nearly 18 years, a high-profile consequence of its severe decline that could reduce index-related demand and reinforce negative sentiment. Nike Loses Its S&P 100 Membership
• Negative Sentiment: Analysts continue to cite shifting consumer preferences, intense competition and NIKE’s broad product and market exposure as structural challenges, leaving investors concerned that a recovery could take time. Shifting Consumer Preferences Continue to Impact Nike and Lululemon

About NIKE

NIKE, Inc is a global athletic footwear, apparel and equipment company headquartered near Beaverton, Oregon. The company designs, develops and markets products under the NIKE, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE’s offerings include athletic and casual footwear, sportswear, apparel, accessories and athletic equipment. The company distributes its products through company-owned retail stores, digital platforms, wholesale partners and independent distributors.