NIKE (NYSE:NKE) Given New $40.00 Price Target at HSBC

Key Points

• HSBC lowered NIKE’s price target to $40 from $48 and maintained a “hold” rating, implying roughly 13% upside from the previous close.
• Analyst sentiment remains cautious: NIKE has a consensus “hold” rating and average price target of $46.77, with 21 holds and seven sells among analysts tracked.
• NIKE shares opened at $35.39, near their 52-week low of $35.22. While the company beat quarterly earnings and revenue expectations, sales declined 1.1% year over year amid China weakness, discounting, competitive pressure and margin concerns.

NIKE (NYSE:NKE - Get Free Report) had its price objective dropped by research analysts at HSBC from $48.00 to $40.00 in a research report issued on Monday. The firm currently has a "hold" rating on the footwear maker's stock. HSBC's target price would suggest a potential upside of 13.03% from the company's previous close.

A number of other brokerages have also recently issued reports on NKE. Telsey Advisory Group set a $44.00 target price on shares of NIKE and gave the company a "market perform" rating in a research report on Tuesday, September 15th. BMO Capital Markets began coverage on shares of NIKE in a report on Tuesday, September 8th. They set an "underperform" rating and a $30.00 target price on the stock. Rothschild & Co Redburn cut their price target on NIKE from $45.00 to $37.00 and set a "sell" rating for the company in a research note on Friday, July 17th. Weiss Ratings upgraded NIKE from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, July 17th. Finally, DZ Bank reaffirmed a "buy" rating on shares of NIKE in a report on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty-one have assigned a Hold rating and seven have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $46.77.

NIKE Stock Performance

Shares of NKE stock opened at $35.39 on Monday. The company has a market capitalization of $52.50 billion, a price-to-earnings ratio of 16.93, a PEG ratio of 1.84 and a beta of 1.10. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. The company has a 50-day simple moving average of $39.58 and a 200 day simple moving average of $43.48. NIKE has a 52 week low of $35.22 and a 52 week high of $76.97.

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 for the quarter, beating the consensus estimate of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The firm had revenue of $10.97 billion for the quarter, compared to analysts' expectations of $10.85 billion. During the same period in the prior year, the firm earned $0.14 EPS. The business's revenue was down 1.1% on a year-over-year basis. On average, sell-side analysts predict that NIKE will post 1.66 earnings per share for the current year.

Insider Activity

In other NIKE news, EVP Philip McCartney sold 2,559 shares of the firm'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 trade represents a 3.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of NIKE stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $102,460.80. Following the completion of the transaction, the chief financial officer owned 82,165 shares in the company, valued at approximately $3,418,064. The trade was a 2.91% decrease in their position. 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. 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.

Institutional Trading of NIKE

Several institutional investors and hedge funds have recently modified their holdings of the business. Scarborough Advisors LLC acquired a new stake in NIKE in the first quarter valued at about $25,000. Cornerstone Financial Management LLC acquired a new position in NIKE during the fourth quarter worth about $26,000. Sankala Group LLC bought a new position in shares of NIKE in the fourth quarter worth about $26,000. Meeder Asset Management Inc. lifted its holdings in shares of NIKE by 108.4% in the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock worth $29,000 after acquiring an additional 285 shares during the last quarter. Finally, Atlas Wealth LLC acquired a new stake in shares of NIKE in the 1st quarter valued at approximately $31,000. 64.25% of the stock is currently owned by institutional investors.

Key NIKE News

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.

NIKE Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.