Baird Financial Group Inc. Sells 290,482 Shares of NIKE, Inc. $NKE

Key Points

• Baird Financial Group cut its NIKE stake by 46.7%, selling 290,482 shares during the second quarter and retaining 332,029 shares valued at approximately $13.63 million. Institutional investors and hedge funds own 64.25% of NIKE.
• NIKE shares opened at $36.81, near their one-year low of $36.55 and well below the $76.97 high. The company beat quarterly EPS and revenue expectations, but revenue declined 1.1% year over year.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and a $50.12 target price after several firms lowered their estimates. NIKE declared a quarterly dividend of $0.41 per share, equivalent to a 4.5% annualized yield.

Baird Financial Group Inc. cut its holdings in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 46.7% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 332,029 shares of the footwear maker's stock after selling 290,482 shares during the quarter. Baird Financial Group Inc.'s holdings in NIKE were worth $13,630,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of NKE. Scarborough Advisors LLC bought a new position in shares of NIKE in the 1st quarter valued at about $25,000. Cornerstone Financial Management LLC bought a new stake in NIKE during the fourth quarter worth about $26,000. Sankala Group LLC bought a new stake in NIKE during the fourth quarter worth about $26,000. Meeder Asset Management Inc. boosted its position in NIKE by 108.4% during the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock valued at $29,000 after purchasing an additional 285 shares during the last quarter. Finally, J.Safra Asset Management Corp acquired a new position in NIKE during the fourth quarter valued at approximately $29,000. 64.25% of the stock is currently owned by institutional investors and hedge funds.

NIKE Price Performance

Shares of NYSE NKE opened at $36.81 on Friday. The firm has a market cap of $54.62 billion, a P/E ratio of 17.61, a price-to-earnings-growth ratio of 1.80 and a beta of 1.10. The business's 50 day moving average is $41.04 and its 200-day moving average is $45.32. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40. NIKE, Inc. has a 1-year low of $36.55 and a 1-year high of $76.97.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) 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 business had revenue of $10.97 billion during the quarter, compared to the consensus estimate of $10.85 billion. During the same period in the previous year, the company posted $0.14 EPS. The firm's quarterly revenue was down 1.1% on a year-over-year basis. Equities research analysts predict that NIKE, Inc. will post 1.74 earnings per share for the current year.

NIKE Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.41 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.5%. NIKE's dividend payout ratio (DPR) is currently 78.47%.

Insider Buying and Selling at NIKE

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of the firm'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 $137,992.89. Following the transaction, the chief operating officer directly owned 104,862 shares of the company's stock, valued at approximately $3,941,762.58. This trade represents a 3.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through 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 NIKE stock in a transaction dated 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 sale, the insider owned 57,436 shares of the company's stock, valued at $2,415,183.80. This trade represents a 7.81% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 14,974 shares of company stock worth $600,126. Insiders own 1.10% of the company's stock.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Some analysts argue that NIKE’s core business remains viable despite weak sentiment. The depressed valuation and approximately 4.5% dividend yield could attract long-term investors if management can successfully restore growth. Nike Is Now Down 40% This Year
• Neutral Sentiment: NIKE shareholders approved an expanded employee stock purchase plan. The measure may help employee retention, although potential additional share issuance could dilute existing shareholders. Nike Shareholders Approve Expanded Employee Stock Purchase Plan
• Neutral Sentiment: NIKE’s latest quarterly results exceeded earnings and revenue expectations, but sales still declined year over year. Analysts currently expect about $1.74 in earnings per share for the full year, leaving the valuation dependent on a meaningful operational recovery.
• Negative Sentiment: Morgan Stanley warned that the selloff may continue, citing persistent operating weakness and disappointing performance. NIKE’s imminent removal from the S&P 100 may also reduce index-related demand and reinforce negative sentiment. Morgan Stanley Says the Pain May Not Be Over Yet
• Negative Sentiment: BMO Capital Markets issued a strongly bearish “Underperform”/“Strong Sell” view, adding to a series of negative Wall Street calls. Analysts continue to cite intense competition, shifting consumer preferences and broad product-market challenges. Nike Gains Another Bearish Call
• Negative Sentiment: Two senior executives sold shares worth approximately $234,000 combined under pre-arranged Rule 10b5-1 plans. The sales were relatively small and scheduled in advance, but they add to near-term caution among investors. NIKE Insider Selling

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on NKE shares. Rothschild & Co Redburn lowered their price target on NIKE from $45.00 to $37.00 and set a "sell" rating on the stock in a research report on Friday, July 17th. Wells Fargo & Company dropped their price objective on NIKE from $45.00 to $40.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 1st. The Goldman Sachs Group cut their price objective on NIKE from $46.00 to $42.00 and set a "neutral" rating for the company in a report on Wednesday, July 1st. UBS Group reissued a "neutral" rating on shares of NIKE in a research note on Wednesday. Finally, Piper Sandler lowered their target price on shares of NIKE from $50.00 to $45.00 and set a "neutral" rating on the stock in a report on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty have assigned a Hold rating and six have issued a Sell rating to the company. According to MarketBeat.com, NIKE has a consensus rating of "Hold" and a consensus target price of $50.12.

NIKE 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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