NIKE (NYSE:NKE) Upgraded by Benchmark to Hold Rating

Key Points

• Benchmark upgraded NIKE to a “Hold” rating, while the broader analyst consensus remains “Hold” with a $48.41 average price target. Ratings include 22 Holds, nine Buys, six Sells, and one Strong Buy.
• NIKE shares opened at $35.95, near their 52-week low of $35.35 and down from the $76.97 high. The stock has a market capitalization of approximately $53.3 billion and trades at a P/E ratio of 17.2.
• Despite revenue declining 1.1% year over year to $10.97 billion, NIKE beat quarterly earnings expectations with EPS of $0.20 versus the $0.11 consensus. Insiders sold 14,974 shares worth about $600,000 over the past 90 days, while institutional investors own 64.25% of the stock.

NIKE (NYSE:NKE - Get Free Report) was upgraded by analysts at Benchmark to a "hold" rating in a research note issued to investors on Tuesday, Zacks reports.

NKE has been the topic of a number of other research reports. Bank of America decreased their target price on shares of NIKE from $55.00 to $47.00 and set a "neutral" rating on the stock in a report on Wednesday, July 1st. Wells Fargo & Company cut their price target on shares of NIKE from $45.00 to $40.00 and set an "equal weight" rating for the company in a report on Wednesday, July 1st. China Renaissance reduced their price target on shares of NIKE from $50.30 to $47.30 and set a "hold" rating for the company in a research report on Thursday, July 2nd. BTIG Research reaffirmed a "buy" rating and issued a $55.00 price target on shares of NIKE in a report on Wednesday. Finally, Zacks Research upgraded NIKE from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-two have issued a Hold rating and six have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $48.41.

NIKE Stock Down 0.4%

Shares of NYSE NKE opened at $35.95 on Tuesday. NIKE has a 52 week low of $35.35 and a 52 week high of $76.97. The business has a 50-day simple moving average of $39.91 and a two-hundred day simple moving average of $43.78. The company has a quick ratio of 1.36, a current ratio of 1.96 and a debt-to-equity ratio of 0.40. The company has a market cap of $53.33 billion, a P/E ratio of 17.20, a P/E/G ratio of 1.84 and a beta of 1.10.

NIKE (NYSE:NKE - Get Free Report) last announced 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 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 analysts' expectations of $10.85 billion. During the same period in the prior year, the business posted $0.14 earnings per share. The company's revenue was down 1.1% on a year-over-year basis. Research analysts anticipate that NIKE will post 1.67 earnings per share for the current fiscal year.

Insider Activity at NIKE

In other NIKE news, COO Venkatesh Alagirisamy sold 3,671 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the chief operating officer owned 104,862 shares of the company's stock, valued at $3,941,762.58. The trade was a 3.38% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $42.05, for a total transaction of $204,657.35. Following the completion of the transaction, the insider directly owned 57,436 shares in the company, valued at $2,415,183.80. The trade was a 7.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 14,974 shares of company stock worth $600,126 in the last 90 days. 1.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in NKE. TCM Advisors LLC boosted its position in shares of NIKE by 1.8% during the fourth quarter. TCM Advisors LLC now owns 11,218 shares of the footwear maker's stock valued at $715,000 after buying an additional 200 shares during the period. FAS Wealth Partners Inc. raised its holdings in shares of NIKE by 4.2% in the first quarter. FAS Wealth Partners Inc. now owns 6,109 shares of the footwear maker's stock worth $323,000 after buying an additional 249 shares during the period. Elevation Wealth Partners LLC lifted its stake in shares of NIKE by 34.6% during the 2nd quarter. Elevation Wealth Partners LLC now owns 989 shares of the footwear maker's stock worth $41,000 after acquiring an additional 254 shares during the last quarter. Midwest Professional Planners LTD. lifted its stake in shares of NIKE by 1.5% during the 1st quarter. Midwest Professional Planners LTD. now owns 17,904 shares of the footwear maker's stock worth $946,000 after acquiring an additional 266 shares during the last quarter. Finally, Advance Capital Management Inc. boosted its holdings in NIKE by 7.1% during the 1st quarter. Advance Capital Management Inc. now owns 4,203 shares of the footwear maker's stock valued at $222,000 after acquiring an additional 279 shares during the period. 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: BTIG reaffirmed its Buy rating and set a $55 price target, implying substantial upside from recent trading levels. BTIG rating and Nike earnings preview
• Positive Sentiment: JD Sports’ finance chief said Nike remains a very strong brand and that its turnaround is likely a matter of time. The comments support confidence in Nike’s wholesale relationships and brand strength. JD Sports comments on Nike turnaround
• Positive Sentiment: Nike enters the earnings period with potential support from its prior earnings beat: the company exceeded consensus EPS and revenue expectations in its latest reported quarter. Investors are watching for further margin improvement and stronger performance categories.
• Neutral Sentiment: Analysts and investors are focused on channel inventory, promotional activity, wholesale sell-through, and whether Nike can rebuild demand without relying heavily on discounts. Nike athletic-apparel market analysis
• Neutral Sentiment: Nike’s low valuation and depressed share price may attract long-term investors, but the stock’s recovery depends on proving that gross margins and earnings estimates have bottomed. Nike gross-margin and earnings outlook
• Negative Sentiment: Barclays lowered its price target to $48 ahead of earnings, while Stifel reportedly cut its target to $40. The reductions reflect concerns that weak lifestyle demand could offset progress in performance products and margins. Barclays cuts Nike price target
• Negative Sentiment: Commentary indicates that accelerating growth may take longer than expected, keeping earnings estimates and investor confidence constrained. Nike growth outlook
• Negative Sentiment: Adidas is currently showing stronger sales momentum and faster direct-to-consumer growth, increasing competitive pressure on Nike. Nike versus Adidas comparison
• Negative Sentiment: Nike-owned Converse pulled an advertisement after backlash over alleged KKK imagery, creating a reputational risk, although the issue is separate from Nike’s core operating outlook. Converse advertisement controversy

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.

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