NIKE (NYSE:NKE) Upgraded at BMO Capital Markets

Key Points

• BMO Capital Markets rated NIKE “Strong Sell,” adding to mixed analyst sentiment; MarketBeat’s consensus rating remains “Hold” with an average price target of $50.12.
• NIKE shares opened at $36.57, near their 52-week low of $36.55 and well below the 52-week high of $76.97. Analysts cite operating weakness, shifting consumer preferences and intense competition as ongoing challenges.
• The company beat quarterly expectations with adjusted earnings of $0.20 per share versus $0.11 expected and revenue of $10.97 billion, though sales declined 1.1% year over year.

NIKE (NYSE:NKE - Get Free Report) was upgraded by stock analysts at BMO Capital Markets to a "strong sell" rating in a note issued to investors on Tuesday, Zacks reports.

A number of other equities research analysts have also recently commented on the company. Argus raised NIKE to a "strong-buy" rating in a report on Wednesday, July 15th. UBS Group reiterated a "neutral" rating on shares of NIKE in a research report on Wednesday. Morgan Stanley set a $31.00 target price on NIKE and gave the stock an "underweight" rating in a research report on Thursday. Telsey Advisory Group set a $47.00 price target on NIKE and gave the stock a "market perform" rating in a report on Wednesday, July 1st. Finally, Bank of America lowered their price target on NIKE from $55.00 to $47.00 and set a "neutral" rating on the stock in a report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty have given a Hold rating and six have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $50.12.

NIKE Stock Performance

Shares of NYSE NKE opened at $36.57 on Tuesday. The stock has a market cap of $54.25 billion, a PE ratio of 17.50, a price-to-earnings-growth ratio of 1.83 and a beta of 1.10. NIKE has a 1 year low of $36.55 and a 1 year high of $76.97. The firm has a fifty day moving average price of $41.19 and a 200-day moving average price of $45.38. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36.

NIKE (NYSE:NKE - Get Free Report) last released its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. The company had revenue of $10.97 billion for the quarter, compared to analysts' expectations of $10.85 billion. NIKE had a net margin of 6.70% and a return on equity of 16.54%. NIKE's revenue for the quarter was down 1.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.14 EPS. Equities analysts anticipate that NIKE will post 1.74 earnings per share for the current fiscal year.

Insider Transactions at NIKE

In other news, COO Venkatesh Alagirisamy sold 3,671 shares of NIKE stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $137,992.89. Following the sale, the chief operating officer directly 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 document filed with the SEC, which can be accessed through this hyperlink. 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 stock was sold at an average price of $37.59, for a total value of $96,192.81. Following the completion of the sale, the executive vice president owned 78,121 shares in the company, valued at $2,936,568.39. This represents a 3.17% 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. 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 company insiders.

Institutional Trading of NIKE

Hedge funds have recently modified their holdings of the company. Cornerstone Financial Management LLC bought a new position in NIKE during the fourth quarter valued at $26,000. Sankala Group LLC bought a new stake in shares of NIKE in the 4th quarter worth about $26,000. J.Safra Asset Management Corp purchased a new stake in shares of NIKE during the 4th quarter valued at about $29,000. Kemnay Advisory Services Inc. purchased a new stake in shares of NIKE during the 4th quarter valued at about $30,000. Finally, Scarborough Advisors LLC bought a new position in shares of NIKE in the 1st quarter valued at about $25,000. 64.25% of the stock is owned by hedge funds and other institutional investors.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Neutral Sentiment: Shareholders approved an expanded employee stock purchase plan adopted by NIKE’s board in July. The plan could support employee retention, although the potential for additional share issuance may limit its benefit to existing investors. Nike Shareholders Approve Expanded Employee Stock Purchase Plan
• Neutral Sentiment: Some commentary argues that NIKE’s underlying business is not fundamentally broken and that its depressed valuation and dividend yield could appeal to long-term investors, though a turnaround remains necessary. Nike: The Sentiment Is Bleak, But The Underlying Business Is Not Broken
• Negative Sentiment: Morgan Stanley warned that the pain may not be over, citing persistent operating weakness, disappointing share performance and NIKE’s imminent removal from the S&P 100. Morgan Stanley Says the Pain May Not Be Over Yet
• Negative Sentiment: BMO initiated coverage with an Underperform rating, pointing to challenges facing NIKE and the broader athletic-apparel market. The new bearish call adds to pressure on the stock. BMO Says Sell Nike Stock
• Negative Sentiment: NIKE is set to lose its S&P 100 membership after nearly 18 years, a high-profile consequence of its severe decline that could reduce index-related demand and reinforce negative sentiment. Nike Loses Its S&P 100 Membership
• Negative Sentiment: Analysts continue to cite shifting consumer preferences, intense competition and NIKE’s broad product and market exposure as structural challenges, leaving investors concerned that a recovery could take time. Shifting Consumer Preferences Continue to Impact Nike and Lululemon

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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