NIKE (NYSE:NKE) Earns "Underperform" Rating from Bank of America

Key Points

• Bank of America reaffirmed its “Underperform” rating on NIKE and cut its price target from $47 to $30, implying 16.64% downside from the previous close.
• Analyst sentiment remains cautious: NIKE has a consensus “Hold” rating and an average price target of $47.91, while the stock was trading near its one-year low at $35.99.
• NIKE’s latest quarter exceeded earnings and revenue estimates, but revenue declined 1.1% year over year; ongoing concerns include excess inventory, promotional pressure and weak wholesale demand.

NIKE (NYSE:NKE - Get Free Report)'s stock had its "underperform" rating reaffirmed by investment analysts at Bank of America in a research note issued on Friday, Benzinga reports. They presently have a $30.00 price objective on the footwear maker's stock, down from their prior price objective of $47.00. Bank of America's target price would indicate a potential downside of 16.64% from the stock's previous close.

Other equities research analysts have also issued research reports about the stock. Berenberg Bank set a $49.00 price objective on shares of NIKE and gave the company a "hold" rating in a report on Friday, July 3rd. China Renaissance decreased their target price on shares of NIKE from $50.30 to $47.30 and set a "hold" rating on the stock in a report on Thursday, July 2nd. Wells Fargo & Company dropped their price target on shares of NIKE from $45.00 to $40.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 1st. BNP Paribas Exane restated an "underperform" rating on shares of NIKE in a report on Wednesday, July 22nd. Finally, Zacks Research raised shares of NIKE from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty-one have assigned a Hold rating and seven have assigned a Sell rating to the company. Based on data from MarketBeat, NIKE currently has a consensus rating of "Hold" and an average price target of $47.91.

NIKE Price Performance

NKE stock opened at $35.99 on Friday. NIKE has a 1 year low of $35.35 and a 1 year high of $76.97. 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 market capitalization of $53.39 billion, a PE ratio of 17.22, a price-to-earnings-growth ratio of 1.84 and a beta of 1.10. The business has a 50 day simple moving average of $39.74 and a 200-day simple moving average of $43.63.

NIKE (NYSE:NKE - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.11 by $0.09. The firm had revenue of $10.97 billion for the quarter, compared to the consensus estimate of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The firm's revenue was down 1.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.14 earnings per share. Equities research analysts anticipate that NIKE will post 1.67 earnings per share for the current fiscal year.

Insider Buying and Selling at NIKE

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of NIKE stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $137,992.89. Following the completion of the transaction, the chief operating officer directly owned 104,862 shares in the company, valued at approximately $3,941,762.58. This trade represents a 3.38% 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. Also, EVP Philip McCartney sold 2,559 shares of the business'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 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. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 14,974 shares of company stock worth $600,126. 1.10% of the stock is currently owned by insiders.

Institutional Trading of NIKE

A number of large investors have recently made changes to their positions in NKE. State Street Corp lifted its position in shares of NIKE by 2.2% during the 4th quarter. State Street Corp now owns 59,315,606 shares of the footwear maker's stock worth $3,802,807,000 after purchasing an additional 1,275,494 shares during the last quarter. Capital World Investors lifted its holdings in NIKE by 16.2% during 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 during the last quarter. J. Stern & Co. LLP boosted 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 worth $3,061,555,000 after acquiring an additional 47,956,692 shares in the last quarter. Geode Capital Management LLC boosted 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 acquiring an additional 233,925 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of NIKE in the 4th quarter valued at about $829,956,000. 64.25% of the stock is currently owned by hedge funds and other institutional investors.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: BTIG Research reaffirmed its Buy rating and maintained a $55 price target, implying significant upside from current levels. BTIG Research Reaffirms Buy Rating for NIKE
• Positive Sentiment: NIKE reportedly signed a roughly $200 million sponsorship agreement with the University of Miami. The deal could strengthen brand visibility, particularly in college sports, and support future apparel and footwear sales. NIKE Signs University of Miami Deal
• Positive Sentiment: Benchmark upgraded NIKE to Hold from a lower stance, while a major retail partner described the brand as “very strong,” providing some support for the long-term turnaround narrative.
• Neutral Sentiment: Options traders are pricing in an approximately 9% move around the October 1 earnings release, signaling elevated volatility rather than a clear directional expectation. NIKE Options Traders Expect Volatility
• Negative Sentiment: Analysts broadly expect fiscal first-quarter EPS and revenue to decline. Needham reiterated its Hold rating, reduced estimates, and warned of further downside; Barclays also cut its price target ahead of earnings.
• Negative Sentiment: NIKE lost football superstar Kylian Mbappé to On Holding, raising concerns about competitive pressure in global soccer and the company’s ability to retain high-profile athletes. On Holding Signs Kylian Mbappé
• Negative Sentiment: Commentary continues to highlight excess inventory, promotional activity, weak wholesale sell-through, and prolonged consumer-discretionary pressure. These issues could delay the expected sales and margin 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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