NIKE (NYSE:NKE) Earns "Neutral" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its “Neutral” rating on Nike, while the broader analyst consensus remains “Hold” with an average price target of $48.41.
• Nike shares opened at $35.95, near their 52-week low of $35.35 and below both their 50-day and 200-day moving averages, reflecting continued stock-price weakness.
• Nike beat quarterly EPS and revenue expectations, but revenue declined 1.1% year over year; analysts expect full-year EPS of approximately $1.67, while recent insider transactions show net selling by executives.

NIKE (NYSE:NKE - Get Free Report)'s stock had its "neutral" rating reiterated by equities researchers at Royal Bank Of Canada in a report released on Tuesday.

A number of other research analysts also recently issued reports on NKE. Truist Financial set a $42.00 price objective on NIKE and gave the stock a "hold" rating in a report on Wednesday, August 26th. Zacks Research raised NIKE from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 19th. Bank of America cut their price objective on NIKE from $55.00 to $47.00 and set a "neutral" rating for the company in a research report on Wednesday, July 1st. Rothschild & Co Redburn dropped their price target on NIKE from $45.00 to $37.00 and set a "sell" rating on the stock in a research note on Friday, July 17th. Finally, Citigroup cut shares of NIKE from a "neutral" rating to a "negative" rating in a research note on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-two have assigned a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $48.41.

NIKE Stock Performance

Shares of NIKE stock opened at $35.95 on Tuesday. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36. The firm has a 50 day simple moving average of $39.91 and a 200 day simple moving average of $43.78. NIKE has a fifty-two week low of $35.35 and a fifty-two week high of $76.97. The firm has a market cap of $53.33 billion, a P/E ratio of 17.16, a P/E/G ratio of 1.84 and a beta of 1.10.

NIKE (NYSE:NKE - Get Free Report) last issued 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. The business had revenue of $10.97 billion for the quarter, compared to analyst estimates of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The firm's revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.14 earnings per share. Sell-side analysts predict that NIKE will post 1.67 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Matthew Friend sold 2,463 shares of NIKE stock in a transaction 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 owned 82,165 shares in the company, valued at approximately $3,418,064. This trade represents a 2.91% decrease in their position. The sale 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. Also, EVP Philip McCartney sold 2,559 shares of the company's stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $96,192.81. Following the sale, the executive vice president owned 78,121 shares of the company's stock, valued at approximately $2,936,568.39. This represents a 3.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is owned by insiders.

Hedge Funds Weigh In On NIKE

Institutional investors have recently added to or reduced their stakes in the stock. QRG Capital Management Inc. increased its holdings in shares of NIKE by 8.5% during the second quarter. QRG Capital Management Inc. now owns 106,883 shares of the footwear maker's stock worth $4,388,000 after buying an additional 8,338 shares in the last quarter. Envestnet Portfolio Solutions Inc. grew its position in NIKE by 214.0% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 32,596 shares of the footwear maker's stock worth $1,338,000 after acquiring an additional 22,215 shares during the last quarter. Envestnet Asset Management Inc. grew its holdings in NIKE by 98.4% during the 2nd quarter. Envestnet Asset Management Inc. now owns 2,202,581 shares of the footwear maker's stock worth $90,416,000 after acquiring an additional 1,092,282 shares during the last quarter. State Street Corp lifted its stake in shares of NIKE by 6.8% in 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 purchasing an additional 4,052,428 shares during the period. Finally, The Manufacturers Life Insurance Company grew its position in shares of NIKE by 1.9% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 640,889 shares of the footwear maker's stock worth $26,308,000 after buying an additional 11,884 shares during the period. 64.25% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Turnaround support from a major retailer: JD Sports’ finance chief said Nike is taking the right steps and that a turnaround is ultimately a matter of time. This offers some reassurance that Nike’s brand remains strong among wholesale partners. Reuters article
• Positive Sentiment: Some analysts see substantial upside: BTIG reaffirmed its buy rating and assigned a $55 price target, implying significant appreciation from the current share price. Benchmark also upgraded Nike to hold, reducing the risk of further outright downgrades. Analyst and retail partner coverage
• Neutral Sentiment: Investors are awaiting earnings: Nike reports fiscal first-quarter results after the close on October 1. The report is expected to clarify whether improving gross margins and momentum in performance footwear can offset weakness in the lifestyle category. Benzinga earnings preview
• Negative Sentiment: Cautious earnings expectations: Analysts expect lower first-quarter revenue and earnings, while recent forecast changes include multiple price-target reductions. Barclays cut its target to $48, and Stifel reduced its target to $40, reflecting concerns about demand and the pace of recovery. Yahoo Finance earnings coverage
• Negative Sentiment: Competitive and brand risks: Kylian Mbappé ended his long-standing relationship with Nike and signed with On Holding, highlighting intensifying competition for high-profile athletes and football visibility. Insider Monkey article

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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