NIKE (NYSE:NKE) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded NIKE to “Sell” from “Hold,” while the broader analyst consensus remains “Hold” with a $42.12 target price.
• NIKE’s fiscal Q1 EPS of $0.48 exceeded expectations, but revenue fell 4.3% year over year to $11.21 billion, pressured by weakness in China, Sportswear and Jordan.
• Management expects fiscal 2027 revenue to decline by a high-single-digit percentage and forecasts EPS of $1.15–$1.35; the company is also pursuing a $2.5 billion restructuring program that is expected to include additional job cuts.

NIKE (NYSE:NKE - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday, Wall Street Zen reports.

NKE has been the topic of a number of other research reports. Deutsche Bank Aktiengesellschaft dropped their price objective on NIKE from $45.00 to $37.00 and set a "hold" rating on the stock in a report on Monday, September 28th. KeyCorp reissued a "sector weight" rating on shares of NIKE in a research report on Friday. UBS Group reiterated a "neutral" rating and issued a $34.00 target price (down from $42.00) on shares of NIKE in a report on Friday. Truist Financial set a $29.00 price target on NIKE and gave the stock a "hold" rating in a report on Friday. Finally, JPMorgan Chase & Co. cut their price objective on shares of NIKE from $40.00 to $33.00 and set an "underweight" rating for the company in a research report on Friday. One equities 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 seven have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $42.12.

NIKE Trading Down 3.6%

NYSE:NKE opened at $33.88 on Friday. 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 stock has a market cap of $50.27 billion, a PE ratio of 16.29, a price-to-earnings-growth ratio of 2.42 and a beta of 1.09. The stock's 50-day moving average is $38.88 and its two-hundred day moving average is $42.88. NIKE has a fifty-two week low of $31.97 and a fifty-two week high of $74.78.

NIKE (NYSE:NKE - Get Free Report) last announced its quarterly earnings data on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.05. NIKE had a net margin of 6.74% and a return on equity of 16.18%. The firm had revenue of $11.21 billion for the quarter, compared to the consensus estimate of $11.32 billion. During the same period in the previous year, the firm posted $0.49 earnings per share. The firm's revenue was down 4.3% on a year-over-year basis. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. As a group, equities research analysts forecast that NIKE will post 1.61 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Amy Montagne sold 4,867 shares of NIKE stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $42.05, for a total value 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. The trade was a 7.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Matthew Friend sold 2,463 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the chief financial officer directly owned 82,165 shares in the company, valued at $3,418,064. The trade was a 2.91% 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. Insiders have sold 14,974 shares of company stock valued at $600,126 in the last ninety days. 1.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On NIKE

Hedge funds and other institutional investors have recently bought and sold shares of the business. Westerkirk Capital Inc. lifted its position in NIKE by 52.4% during the 4th quarter. Westerkirk Capital Inc. now owns 131,220 shares of the footwear maker's stock worth $8,360,000 after buying an additional 45,100 shares in the last quarter. OMERS ADMINISTRATION Corp increased its position in NIKE by 77.9% in the 4th quarter. OMERS ADMINISTRATION Corp now owns 2,526,179 shares of the footwear maker's stock valued at $160,943,000 after acquiring an additional 1,106,499 shares in the last quarter. OneDigital Investment Advisors LLC raised its stake in shares of NIKE by 32.8% in the second quarter. OneDigital Investment Advisors LLC now owns 244,296 shares of the footwear maker's stock worth $10,028,000 after acquiring an additional 60,375 shares during the last quarter. Quantitative Investment Management LLC bought a new position in shares of NIKE in the second quarter worth about $2,459,000. Finally, Deutsche Bank AG lifted its position in shares of NIKE by 8.0% during the second quarter. Deutsche Bank AG now owns 3,566,634 shares of the footwear maker's stock worth $146,410,000 after purchasing an additional 264,576 shares in the last quarter. 64.25% of the stock is owned by institutional investors and hedge funds.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE reported fiscal Q1 EPS of $0.48, above the $0.43 analyst consensus. The company also retains a strong balance sheet, with approximately $8.4 billion in cash and short-term investments, while its dividend yield is approaching 5%. NIKE Posts Earnings Results
• Positive Sentiment: Some analysts see the selloff as an opportunity. Freedom Broker upgraded NKE from “sell” to “buy” with a $51 price target, while BTIG maintained a “buy” rating with a $50 target. Bernstein called the stock “de-risked” following the earnings release. Bernstein says Nike stock is de-risked
• Neutral Sentiment: NIKE is launching the Pace restructuring program, targeting approximately $2.5 billion in savings. Management said the plan is intended to simplify operations and support performance categories, but implementation will include further job cuts likely extending into 2027. NIKE fiscal 2027 first-quarter results
• Neutral Sentiment: The company’s dividend appears supported by its liquidity and history of 24 consecutive years of increases, although a higher yield also reflects the stock’s substantial decline and investors’ concerns about future earnings.
• Negative Sentiment: Fiscal Q1 revenue fell 4.3% year over year to $11.21 billion, below the $11.32 billion consensus estimate. Weakness in Greater China, Sportswear and Jordan continued to weigh on sales, while competition and changing consumer preferences are pressuring the brand. Nike plans more job cuts and forecasts revenue drop
• Negative Sentiment: Management expects fiscal 2027 revenue to decline by a high-single-digit percentage and provided EPS guidance of $1.15–$1.35, well below the roughly $1.66 analyst consensus. The outlook suggests Nike’s turnaround may take longer and be more costly than investors expected. Nike shares fall after weak outlook and layoffs
• Negative Sentiment: Several firms reduced price targets, including Citi to $32 and JPMorgan to $33, with neutral or underweight ratings. Zacks also placed NKE on its Strong Sell list, reinforcing concerns about margin pressure, China weakness and delayed recovery.

NIKE Company Profile

NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.

The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.

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