BTIG Research Reaffirms "Buy" Rating for NIKE (NYSE:NKE)

Key Points

• BTIG Research reaffirmed its Buy rating on NIKE and maintained a $50 price target, implying approximately 33% upside from the reported share price of $37.51.
• Analyst sentiment remains mixed: MarketBeat reports an average rating of “Reduce” and an average target price of $40.93, with most analysts rating the stock Hold and several issuing Sell recommendations.
• NIKE beat quarterly earnings estimates with $0.48 in EPS versus $0.43 expected, but revenue fell 4.3% year over year to $11.21 billion, underscoring ongoing challenges in its turnaround.

NIKE (NYSE:NKE - Get Free Report)'s stock had its "buy" rating reissued by BTIG Research in a research note issued on Thursday, Benzinga reports. They presently have a $50.00 target price on the footwear maker's stock. BTIG Research's price objective suggests a potential upside of 33.29% from the company's current price.

Several other equities analysts have also recently commented on the stock. Zacks Research cut shares of NIKE from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 1st. Royal Bank Of Canada cut their target price on shares of NIKE from $45.00 to $40.00 and set a "sector perform" rating for the company in a research note on Tuesday, September 29th. Piper Sandler set a $28.00 price objective on shares of NIKE and gave the company a "neutral" rating in a research note on Friday, October 2nd. Telsey Advisory Group set a $35.00 price objective on shares of NIKE and gave the stock a "market perform" rating in a report on Friday, October 2nd. Finally, China Renaissance reduced their price objective on shares of NIKE from $50.30 to $47.30 and set a "hold" rating on the stock in a research note on Thursday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twenty-one have assigned a Hold rating and eleven have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $40.93.

NIKE Price Performance

NYSE:NKE opened at $37.51 on Thursday. The stock has a market cap of $55.72 billion, a P/E ratio of 18.04, a PEG ratio of 4.44 and a beta of 1.09. NIKE has a one year low of $31.97 and a one year high of $70.44. The company has a fifty day moving average price of $37.25 and a 200 day moving average price of $41.35. The company has a debt-to-equity ratio of 0.39, a current ratio of 2.07 and a quick ratio of 1.39.

NIKE (NYSE:NKE - Get Free Report) last released its earnings results on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, beating the consensus estimate of $0.43 by $0.05. The firm had revenue of $11.21 billion during the quarter, compared to analysts' expectations of $11.32 billion. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The business's quarterly revenue was down 4.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.49 EPS. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. Analysts anticipate that NIKE will post 1.22 earnings per share for the current year.

Insider Buying and Selling at NIKE

In other NIKE news, COO Venkatesh Alagirisamy sold 3,671 shares of the business's stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total transaction of $137,992.89. Following the completion of the transaction, the chief operating officer owned 104,862 shares of the company's stock, valued at approximately $3,941,762.58. The trade was a 3.38% 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 the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the business's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $42.05, for a total value of $204,657.35. Following the sale, the insider owned 57,436 shares in the company, valued at approximately $2,415,183.80. This trade represents a 7.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 14,974 shares of company stock worth $600,126. Insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. State Street Corp boosted its holdings 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 worth $2,636,104,000 after buying an additional 4,052,428 shares in the last quarter. Flossbach Von Storch SE purchased a new position in NIKE in the second quarter valued at approximately $488,714,000. Amundi grew its stake in shares of NIKE by 59.4% during the 2nd quarter. Amundi now owns 6,460,398 shares of the footwear maker's stock worth $265,199,000 after acquiring an additional 2,406,609 shares during the period. Van ECK Associates Corp grew its stake in shares of NIKE by 4.8% during the 2nd quarter. Van ECK Associates Corp now owns 6,257,863 shares of the footwear maker's stock worth $256,885,000 after acquiring an additional 286,395 shares during the period. Finally, Swiss National Bank boosted its stake in NIKE by 7.3% in the 1st quarter. Swiss National Bank now owns 3,496,700 shares of the footwear maker's stock worth $184,696,000 after purchasing an additional 237,600 shares during the period. Institutional investors and hedge funds own 64.25% of the company's stock.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: BTIG reaffirms Buy rating: BTIG Research maintained its Buy rating and set a $50 price target, implying roughly 33% upside from the current share price. This signals confidence that Nike’s brand and turnaround efforts can eventually restore growth.
• Positive Sentiment: Dividend appeal remains strong: Nike has increased its dividend for nearly 25 years and now offers a forward yield of about 4.4%. The income stream may attract value-oriented investors, although the company has kept the dividend unchanged despite deteriorating operating results. All It Takes Is 1,220 Shares of Nike Stock to Generate $2,000 a Year in Dividends. Is It Worth It?
• Positive Sentiment: Additional analyst support: Argus Research also issued a Buy rating, adding to the case that Nike’s depressed valuation could offer substantial upside if its brand reset and wholesale recovery gain traction. Nike Gets a Buy from Argus Research
• Neutral Sentiment: Q2 estimates are being updated: Analysts have issued new forecasts for Nike’s fiscal second-quarter earnings, but the available report does not identify a significant estimate change or new company guidance. Analysts Issue Forecasts for NIKE's Q2 Earnings
• Negative Sentiment: Turnaround remains unproven: Analysts and market commentary point to stagnant sales, weak recent results, restructuring costs and layoffs. Nike expects fiscal 2027 sales to decline, while investors are waiting for clearer evidence that its portfolio reset and brand strategy can reignite growth. Nike Restructuring And Layoffs Put Pressure On Turnaround And Portfolio Reset

NIKE Company Profile

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

NIKE's product portfolio includes athletic and casual footwear, performance and lifestyle apparel, sports equipment, accessories and digital fitness-related offerings. The company distributes its products through company-owned retail stores, digital platforms and wholesale partners, while also operating direct-to-consumer and membership programs.

The company traces its origins to 1964, when Phil Knight and Bill Bowerman founded Blue Ribbon Sports.