Evercore Has Lowered Expectations for NIKE (NYSE:NKE) Stock Price

Key Points

• Evercore cut NIKE’s price target from $46 to $34, implying roughly 3.9% downside from the stock’s $35.39 opening price. The broader analyst consensus remains “Hold,” with an average target of $46.77.
• NIKE’s latest quarterly results exceeded expectations, with EPS of $0.20 versus the $0.11 consensus and revenue of $10.97 billion, but revenue declined 1.1% year over year.
• Analyst opinions remain mixed: concerns include sales declines, weak China demand, competition, discounting and margin pressure, while some firms see potential for a turnaround under CEO Elliott Hill’s product-focused strategy.

NIKE (NYSE:NKE - Get Free Report) had its target price decreased by investment analysts at Evercore from $46.00 to $34.00 in a report released on Monday. Evercore's price objective would indicate a potential downside of 3.93% from the company's current price.

A number of other research analysts have also recently weighed in on the company. BNP Paribas Exane reaffirmed an "underperform" rating on shares of NIKE in a research report on Wednesday, July 22nd. Wells Fargo & Company reduced their target price on shares of NIKE from $45.00 to $40.00 and set an "equal weight" rating for the company in a report on Wednesday, July 1st. HSBC lowered their price target on shares of NIKE from $48.00 to $40.00 and set a "hold" rating on the stock in a report on Monday. Morgan Stanley set a $31.00 price target on shares of NIKE and gave the stock an "underweight" rating in a research report on Thursday, September 10th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of NIKE in a research note on Monday. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty-one have issued a Hold rating and seven have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $46.77.

NIKE Trading Down 1.0%

NYSE:NKE opened at $35.39 on Monday. NIKE has a one year low of $35.22 and a one year high of $76.97. The business has a fifty day moving average price of $39.58 and a 200-day moving average price of $43.48. The firm has a market capitalization of $52.50 billion, a price-to-earnings ratio of 16.93, a price-to-earnings-growth ratio of 1.84 and a beta of 1.10. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.09. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The business had revenue of $10.97 billion during the quarter, compared to analyst estimates of $10.85 billion. During the same quarter in the previous year, the company posted $0.14 earnings per share. NIKE's revenue for the quarter was down 1.1% on a year-over-year basis. Sell-side analysts forecast that NIKE will post 1.66 EPS for the current year.

Insider Activity at NIKE

In related news, insider Amy Montagne sold 4,867 shares of the company's stock in a transaction on Friday, August 7th. The shares were 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 approximately $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Philip McCartney sold 2,559 shares of the firm'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 $96,192.81. Following the transaction, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,974 shares of company stock worth $600,126 over the last ninety days. 1.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NIKE

Several institutional investors have recently added to or reduced their stakes in the company. State Street Corp boosted its position in shares of NIKE by 6.8% during the 2nd quarter. State Street Corp now owns 63,598,789 shares of the footwear maker's stock valued at $2,636,104,000 after acquiring an additional 4,052,428 shares during the last quarter. Capital World Investors grew its stake in shares of NIKE by 16.2% in the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock worth $3,126,246,000 after buying an additional 6,830,938 shares in the last quarter. J. Stern & Co. LLP raised its position in shares of NIKE by 49,010.4% during the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker's stock valued at $3,061,555,000 after buying an additional 47,956,692 shares in the last quarter. Flossbach Von Storch SE purchased a new position in NIKE in the second quarter worth about $488,714,000. Finally, Janus Henderson Group PLC increased its stake 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 acquiring an additional 874,662 shares during the last quarter. Hedge funds and other institutional investors own 64.25% of the company's stock.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Jefferies argues that NIKE is at “rock bottom” and that a stronger-than-expected earnings report or improved outlook could potentially allow the stock to double. Investors are watching for evidence that CEO Elliott Hill’s product-focused strategy, renewed wholesale relationships and reduced discounting are beginning to stabilize the business. Nike Stock Is at Rock Bottom. It Can Double From Here, Analyst Says.
• Positive Sentiment: Options markets imply an approximately 8.3% move in NKE following earnings, creating a significant potential catalyst. The depressed valuation and dividend yield may also attract bargain hunters if management provides credible evidence of a turnaround. Nike Stock Could Swing 8.3% on Q1 Earnings
• Neutral Sentiment: Several recent insider purchases, including purchases by CEO Elliott Hill and other directors, could signal confidence at current prices. However, other executives have sold shares, making the overall insider activity mixed.
• Neutral Sentiment: Goldman Sachs lowered its price target from $42 to $38 and maintained a neutral rating, while StoneX initiated coverage with a hold. These views suggest limited near-term conviction ahead of the earnings release. Goldman Sachs Cuts NIKE Price Target
• Negative Sentiment: Bank of America downgraded NIKE to underperform and cut its price target to $30, citing prolonged sales declines, competitive pressure from Adidas, weak China demand and the risk that the recovery will take longer than expected. Bank of America Just Cut Nike to $30
• Negative Sentiment: Recent reports highlight a 12% sales decline in China, margin pressure from tariffs and discounting, inventory concerns and the difficulty of rebuilding NIKE’s brand momentum. Analysts caution that even a quarterly earnings beat may not be enough to establish a durable recovery.

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.

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