NIKE, Inc. (NYSE:NKE) Stock Has Average Target Price of $47.91

Key Points

• Analyst consensus is “Hold”: 38 firms give NIKE an average 12-month price target of $47.91, compared with shares opening at $35.77. Ratings include 7 sells, 21 holds, 9 buys and 1 strong buy.
• NIKE exceeded quarterly expectations with adjusted EPS of $0.20 versus a $0.11 consensus and revenue of $10.97 billion, although sales declined 1.1% year over year. The company also declared a quarterly dividend of $0.41, representing a 4.6% annualized yield.
• Turnaround risks remain significant: Bank of America downgraded the stock to Underperform and cut its price target to $30, citing weak wholesale demand, excess China inventory, softer consumer trends and product-innovation concerns. Investors will focus on the October 1 earnings report for signs of demand and inventory improvement.

Shares of NIKE, Inc. (NYSE:NKE - Get Free Report) have been assigned an average rating of "Hold" from the thirty-eight research firms that are presently covering the firm, Marketbeat Ratings reports. Seven analysts have rated the stock with a sell recommendation, twenty-one have given a hold recommendation, nine have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $47.91.

Several equities research analysts recently issued reports on the company. DZ Bank reiterated a "buy" rating on shares of NIKE in a research note on Tuesday, June 30th. Morgan Stanley set a $31.00 price objective on NIKE and gave the stock an "underweight" rating in a research note on Thursday, September 10th. BMO Capital Markets started coverage on NIKE in a report on Tuesday, September 8th. They issued an "underperform" rating and a $30.00 price objective for the company. UBS Group set a $42.00 target price on NIKE and gave the company a "neutral" rating in a research report on Thursday, September 17th. Finally, Deutsche Bank Aktiengesellschaft increased their target price on NIKE from $43.00 to $45.00 and gave the stock a "hold" rating in a report on Friday, July 17th.

Insider Activity

In other NIKE news, COO Venkatesh Alagirisamy sold 3,671 shares of the stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total transaction of $137,992.89. Following the sale, the chief operating officer directly owned 104,862 shares in the company, valued at $3,941,762.58. This represents a 3.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the firm's stock in a transaction dated Friday, August 7th. The shares were 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 approximately $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 14,974 shares of company stock worth $600,126. 1.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in NKE. State Street Corp boosted its position in NIKE by 2.2% during the fourth quarter. State Street Corp now owns 59,315,606 shares of the footwear maker's stock valued at $3,802,807,000 after acquiring an additional 1,275,494 shares during the last quarter. Capital World Investors raised its position in shares of NIKE by 16.2% in the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock worth $3,126,246,000 after acquiring an additional 6,830,938 shares in the last quarter. J. Stern & Co. LLP lifted its stake in shares of NIKE by 49,010.4% in the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker's stock valued at $3,061,555,000 after purchasing an additional 47,956,692 shares during the period. Geode Capital Management LLC lifted its stake in shares of NIKE by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker's stock valued at $1,677,251,000 after purchasing an additional 233,925 shares during the period. Finally, Norges Bank bought a new stake in shares of NIKE during the 4th quarter valued at about $829,956,000. 64.25% of the stock is owned by institutional investors.

NIKE Price Performance

Shares of NIKE stock opened at $35.77 on Friday. NIKE has a twelve month low of $35.22 and a twelve month high of $76.97. 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 50-day simple moving average of $39.58 and a two-hundred day simple moving average of $43.57. The stock has a market capitalization of $53.06 billion, a price-to-earnings ratio of 17.11, a price-to-earnings-growth ratio of 1.84 and a beta of 1.10.

NIKE (NYSE:NKE - Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The firm had revenue of $10.97 billion during the quarter, compared to the consensus estimate of $10.85 billion. During the same quarter in the previous year, the firm posted $0.14 EPS. The business's revenue for the quarter was down 1.1% compared to the same quarter last year. Analysts forecast that NIKE will post 1.67 EPS for the current year.

NIKE Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date of this dividend is Tuesday, September 1st. NIKE's payout ratio is 78.47%.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: BTIG reaffirmed a Buy rating, providing a counterpoint to the more cautious analyst views. NIKE also recently signed a reported $200 million partnership with the University of Miami, potentially supporting its college-sports presence. BTIG Research Reaffirms Buy Rating for NIKE Nike University of Miami Partnership
• Neutral Sentiment: NIKE is scheduled to report fiscal first-quarter results on October 1. Investors will look for evidence of improving demand, inventory normalization and progress in China; options markets imply a potentially significant post-earnings move. Nike Earnings Expectations
• Negative Sentiment: Bank of America downgraded NIKE to Underperform from Neutral and cut its price target to $30 from $47. The firm now expects sales to keep falling through May, pushing the anticipated recovery back by roughly a year—potentially to fiscal 2028—and eliminating hopes for a near-term “spring inflection.” Bank of America Nike Downgrade
• Negative Sentiment: The bearish view reflects pressure on wholesale sales and distribution channels, weak demand and excess inventory in China, softer consumer trends, and concerns about product innovation. Bank of America also reduced its valuation multiple, while other analysts have trimmed earnings estimates ahead of the report. Nike Channel and China Pressures

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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