NIKE, Inc. (NYSE:NKE) Stock Rated "Reduce" by Sell-Side Brokerages

Key Points

• Analyst sentiment is cautious: Forty-one brokerages give NIKE an average “Reduce” rating, with 12 sells and 21 holds; the average one-year price target is $40.83.
• NIKE beat quarterly EPS estimates ($0.48 vs. $0.43), but revenue of $11.21 billion fell short of forecasts and declined 4.3% year over year.
• Recent coverage cites sluggish demand, weakness in China and margin pressure as headwinds; the stock was trading at $37.94, well below its 52-week high of $69.14.

Shares of NIKE, Inc. (NYSE:NKE - Get Free Report) have received an average rating of "Reduce" from the forty-one brokerages that are currently covering the firm, Marketbeat Ratings reports. Twelve equities research analysts have rated the stock with a sell recommendation, twenty-one have assigned a hold recommendation, seven have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year target price among brokers that have covered the stock in the last year is $40.83.

A number of equities research analysts have issued reports on the stock. Guggenheim reiterated a "buy" rating and issued a $50.00 target price on shares of NIKE in a research report on Thursday, October 22nd. Weiss Ratings lowered NIKE from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, October 6th. Truist Financial downgraded NIKE from a "hold" rating to a "sell" rating and set a $29.00 target price for the company. in a report on Thursday, November 5th. Raymond James Financial restated a "market perform" rating on shares of NIKE in a research report on Tuesday, September 29th. Finally, Williams Trading downgraded NIKE from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 2nd.

Insider Activity

In other NIKE news, EVP Philip McCartney sold 2,559 shares of NIKE stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $96,192.81. Following the sale, the executive vice president owned 78,121 shares of the company's stock, valued at approximately $2,936,568.39. The trade was a 3.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Venkatesh Alagirisamy sold 3,671 shares of the stock in a transaction on 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 owned 104,862 shares in the company, valued at approximately $3,941,762.58. This represents a 3.38% decrease in their position. 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. Insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Ankerstar Wealth LLC boosted its stake in NIKE by 28.2% during the third quarter. Ankerstar Wealth LLC now owns 9,319 shares of the footwear maker's stock valued at $333,000 after buying an additional 2,049 shares during the period. Entropy Technologies LP bought a new stake in shares of NIKE during the 3rd quarter valued at about $610,000. Acorns Advisers LLC boosted its position in shares of NIKE by 20.7% during the 3rd quarter. Acorns Advisers LLC now owns 16,453 shares of the footwear maker's stock valued at $582,000 after acquiring an additional 2,819 shares during the last quarter. L2 Asset Management LLC increased its position in shares of NIKE by 4.9% in the third quarter. L2 Asset Management LLC now owns 7,042 shares of the footwear maker's stock worth $249,000 after purchasing an additional 329 shares during the last quarter. Finally, FORA Capital LLC raised its stake in NIKE by 168.5% in the third quarter. FORA Capital LLC now owns 277,018 shares of the footwear maker's stock valued at $9,804,000 after purchasing an additional 173,844 shares in the last quarter. 64.25% of the stock is currently owned by hedge funds and other institutional investors.

NIKE Trading Up 0.5%

Shares of NKE traded up $0.18 during mid-day trading on Friday, hitting $37.94. The company had a trading volume of 12,177,696 shares, compared to its average volume of 22,455,494. The company has a quick ratio of 1.39, a current ratio of 2.07 and a debt-to-equity ratio of 0.39. NIKE has a 1-year low of $31.97 and a 1-year high of $69.14. The business's 50-day simple moving average is $36.88 and its 200-day simple moving average is $44.97. The stock has a market cap of $56.35 billion, a PE ratio of 18.24, a P/E/G ratio of 4.33 and a beta of 1.01.

NIKE (NYSE:NKE - Get Free Report) last posted its quarterly earnings data on Thursday, October 1st. The footwear maker reported $0.48 earnings per share for the quarter, beating analysts' consensus estimates of $0.43 by $0.05. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The company had revenue of $11.21 billion during the quarter, compared to analysts' expectations of $11.32 billion. During the same period in the prior year, the company posted $0.49 EPS. The firm's revenue for the quarter was down 4.3% on a year-over-year basis. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. Sell-side analysts forecast that NIKE will post 1.24 earnings per share for the current year.

Latest NIKE News

Investors following NKE have been watching these news items:

• Positive Sentiment: BTIG Research reaffirmed its “Buy” rating and set a $50 price target, about 31.8% above the cited $37.94 share price. The target signals confidence in potential recovery, though it is an analyst opinion rather than a company forecast. Read the report
• Neutral Sentiment: Cantor Fitzgerald began coverage of NIKE, but the supplied report details do not state its rating or price target. Read the report Analysts’ views are also described as mixed, without further specifics in the supplied summary. Read the article
• Negative Sentiment: Recent coverage says NIKE shares are down nearly 40% year to date amid sluggish demand, weakness in China and margin pressure. These concerns could limit the scope for a rebound unless operating trends improve. Read the article

NIKE Company Profile

NIKE, Inc. designs, develops, markets and sells athletic footwear, apparel, equipment and accessories for sports and fitness, as well as lifestyle products. Its portfolio includes the Nike and Jordan brands, and it owns Converse, which sells casual footwear, apparel and accessories. The company sells products worldwide through wholesale partners and its own retail stores and digital platforms. Its offerings serve customers across a range of sports and activities, including running, basketball, soccer and training.

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