NIKE (NYSE:NKE) Stock Gets Downgrade from Truist Financial

Key Points

• Truist Financial downgraded NIKE from Hold to Sell and set a $29 price target, implying 28.37% downside from the stock’s current price.
• Analyst sentiment is broadly cautious: MarketBeat reports a consensus rating of “Reduce” and an average price target of $40.93, with 12 analysts rating the stock Sell and 20 rating it Hold.
• NIKE beat quarterly earnings estimates but missed revenue expectations; sales fell 4.3% year over year, underscoring continuing challenges in its recovery.

NIKE (NYSE:NKE - Get Free Report) was downgraded by stock analysts at Truist Financial from a "hold" rating to a "sell" rating in a research note issued to investors on Thursday, MarketBeat.com reports. They presently have a $29.00 price target on the footwear maker's stock. Truist Financial's price target indicates a potential downside of 28.37% from the company's current price.

A number of other brokerages have also recently commented on NKE. KeyCorp reiterated a "sector weight" rating on shares of NIKE in a research report on Friday, October 2nd. Raymond James Financial restated a "market perform" rating on shares of NIKE in a research report on Tuesday, September 29th. BMO Capital Markets reaffirmed an "underperform" rating on shares of NIKE in a research note on Thursday, October 22nd. Jefferies Financial Group set a $60.00 price objective on NIKE in a report on Friday, October 2nd. Finally, DZ Bank lowered NIKE from a "strong-buy" rating to a "strong sell" rating in a research note on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twenty have assigned a Hold rating and twelve have issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $40.93.

NIKE Stock Up 5.2%

Shares of NKE opened at $40.48 on Thursday. The firm has a market cap of $60.13 billion, a P/E ratio of 19.46, a P/E/G ratio of 4.49 and a beta of 1.01. The stock has a 50 day simple moving average of $36.88 and a two-hundred day simple moving average of $45.88. 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 has a 1 year low of $31.97 and a 1 year high of $69.14.

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

Insiders Place Their Bets

In other NIKE news, COO Venkatesh Alagirisamy sold 3,671 shares of the firm's stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $137,992.89. Following the sale, the chief operating officer owned 104,862 shares of the company's stock, valued at $3,941,762.58. This trade represents a 3.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total transaction of $96,192.81. Following the completion of the transaction, the executive vice president owned 78,121 shares in the company, valued at $2,936,568.39. The trade was a 3.17% decrease in their position. 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 a total of 11,097 shares of company stock valued at $438,843 in the last quarter. Insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of NKE. Scarborough Advisors LLC bought a new position in shares of NIKE in the first quarter worth about $25,000. Meeder Asset Management Inc. grew its position in shares of NIKE by 108.4% during the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock worth $29,000 after purchasing an additional 285 shares in the last quarter. Atlas Wealth LLC bought a new stake in NIKE during the 1st quarter valued at approximately $31,000. Main Street Group LTD bought a new stake in NIKE during the 1st quarter valued at approximately $36,000. Finally, Reyes Financial Architecture Inc. purchased a new position in NIKE in the 3rd quarter worth approximately $26,000. Hedge funds and other institutional investors own 64.25% of the company's stock.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: A market-wide rebound in beaten-down consumer stocks helped lift Nike alongside peers; the move appears driven more by improving sector sentiment than by a new Nike-specific announcement. Article: Nike Climbs as Dow Rally Lifts Consumer Stocks
• Neutral Sentiment: Nike’s Sport Offense reset, fresh product launches and focus on performance categories could help restore momentum and protect full-price sales. However, the strategy’s success remains unproven, and weakness in Sportswear is still a concern. Article: NIKE's Product Reset
• Neutral Sentiment: Stifel reiterated its Hold rating ahead of Investor Day, signaling limited conviction in the near-term upside. The event could provide investors with more detail on Nike’s turnaround plans. Article: Stifel Reiterates Hold Rating on Nike into Investor Day
• Negative Sentiment: Recent gains may have made the risk-reward less attractive, according to one analysis, despite Nike’s still-high dividend yield. That reflects ongoing concern that the recovery may take time. Article: Nike’s Dividend Yield Is Still Attractive, But I Can’t Say the Same About NKE Stock
• Negative Sentiment: Turnaround risks persist: coverage notes sales and near-term earnings pressure, with fiscal 2027 sales expected to decline. Product launches and restructuring may help, but investors are still waiting for evidence of a sustained recovery. Article: Will Product Reset Change Nike's Narrative

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.

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