NIKE (NYSE:NKE) Receives Buy Rating from BTIG Research

Key Points

• BTIG Research reiterated a “Buy” rating on NIKE and set a $55 price target, implying approximately 52% upside from the stock’s $36.09 price.
• Analyst sentiment remains mixed: NIKE has a consensus “Hold” rating and an average price target of $48.65, with 21 analysts at Hold compared with nine Buys and six Sells.
• NIKE recently exceeded quarterly earnings and revenue expectations, but revenue declined 1.1% year over year, while ongoing competitive pressure and concerns about promotions and margins continue to weigh on the turnaround.

NIKE (NYSE:NKE - Get Free Report)'s stock had its "buy" rating reiterated by stock analysts at BTIG Research in a note issued to investors on Wednesday, Marketbeat reports. They currently have a $55.00 price objective on the footwear maker's stock. BTIG Research's price target would indicate a potential upside of 52.38% from the company's current price.

Several other analysts have also recently weighed in on the stock. Barclays reissued an "overweight" rating and issued a $48.00 price target on shares of NIKE in a research note on Wednesday. Oppenheimer reduced their price target on shares of NIKE from $120.00 to $60.00 and set an "outperform" rating on the stock in a research report on Friday, June 26th. Weiss Ratings upgraded NIKE from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, July 17th. CICC Research cut their target price on NIKE from $58.00 to $44.80 and set a "neutral" rating for the company in a research note on Thursday, July 2nd. Finally, Jefferies Financial Group restated a "buy" rating on shares of NIKE in a research report on Tuesday, August 25th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty-one have assigned a Hold rating and six have issued a Sell rating to the company. According to data from MarketBeat, NIKE presently has a consensus rating of "Hold" and a consensus target price of $48.65.

NIKE Price Performance

NKE stock opened at $36.09 on Wednesday. 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 $53.55 billion, a PE ratio of 17.27, 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 $40.04 and a 200-day simple moving average of $43.93.

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. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The firm had revenue of $10.97 billion for the quarter, compared to the consensus estimate of $10.85 billion. During the same quarter last year, the business posted $0.14 earnings per share. The firm's revenue was down 1.1% compared to the same quarter last year. Equities research analysts anticipate that NIKE will post 1.67 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of the business's stock in a transaction on Wednesday, September 9th. The shares were 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 in the company, 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 document filed with the SEC, which is accessible 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 the firm's 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 sale, the chief financial officer owned 82,165 shares in the company, valued at approximately $3,418,064. This represents a 2.91% decrease in their ownership of the stock. 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. 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 company insiders.

Hedge Funds Weigh In On NIKE

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp boosted its holdings 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 buying an additional 4,052,428 shares in the last quarter. Capital World Investors lifted its position in NIKE by 16.2% in the fourth quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock valued at $3,126,246,000 after acquiring an additional 6,830,938 shares during the last quarter. J. Stern & Co. LLP boosted its stake in NIKE by 49,010.4% in the fourth quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker's stock valued at $3,061,555,000 after acquiring an additional 47,956,692 shares in the last quarter. Geode Capital Management LLC boosted its stake in NIKE by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker's stock valued at $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 during the fourth quarter worth about $829,956,000. 64.25% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: JD Sports’ finance chief said Nike is taking the right steps and that a turnaround is “only a matter of time,” offering support for the brand’s long-term recovery prospects. Britain's JD Sports says Nike turnaround is only a matter of time
• Positive Sentiment: Nike is rebuilding its wholesale marketplace, reducing promotions and emphasizing full-price sales, which could improve profitability if execution strengthens. NIKE's Marketplace Strategy: Balancing Reach and Profitability?
• Positive Sentiment: The stock’s depressed valuation and elevated dividend yield are attracting value- and income-oriented investors, while a potential $300 million World Cup-related sales benefit could help upcoming results.
• Neutral Sentiment: Investors are focused on whether stronger performance categories and improving margins can offset soft lifestyle demand when Nike reports on October 1. Last quarter, Nike exceeded EPS and revenue expectations, but revenue still declined year over year. Nike Wall Street Tests Whether the Turnaround Can Outrun Weak Demand
• Neutral Sentiment: Alexandre Arnault’s appointment to Nike’s board adds luxury-brand and consumer-marketing expertise, although it has not yet changed the company’s near-term earnings outlook.
• Negative Sentiment: Stifel lowered its price target to $40 from $45 and kept a Hold rating, citing greater promotional activity, weak product demand and a tougher gross-margin comparison. The firm also cut its fiscal first-quarter expectations. Nike Faces $300M World Cup Boost But Stifel Sees a Bigger Margin Squeeze
• Negative Sentiment: Competitive pressure remains elevated: adidas is showing stronger sales momentum and faster direct-to-consumer growth, while On is gaining visibility after signing soccer star Kylian Mbappé, who ended his long Nike relationship.
• Negative Sentiment: Converse, Nike’s owned brand, pulled an advertisement after backlash over alleged Ku Klux Klan imagery, creating an additional reputational risk, though the incident is unlikely to be a primary earnings driver.

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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