Banco BTG Pactual S.A. Invests $6.32 Million in NIKE, Inc. $NKE

Key Points

• Banco BTG Pactual S.A. opened a new NIKE position in the fourth quarter, buying 99,190 shares valued at about $6.32 million. NIKE now makes up roughly 1.1% of the firm’s portfolio.
• Institutional ownership of NIKE remains high, with hedge funds and asset managers continuing to add or hold large stakes. The article notes that institutions own about 64.25% of the company.
• NIKE is facing a mixed Wall Street backdrop: analysts have recently cut price targets and issued hold/neutral views, citing a slower-than-expected turnaround and limited near-term catalysts. At the same time, the company reported earnings that beat estimates and recently announced a $0.41 quarterly dividend.

Banco BTG Pactual S.A. purchased a new position in shares of NIKE, Inc. (NYSE:NKE - Free Report) during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 99,190 shares of the footwear maker's stock, valued at approximately $6,319,000. NIKE makes up approximately 1.1% of Banco BTG Pactual S.A.'s investment portfolio, making the stock its 24th biggest position.

Other hedge funds have also made changes to their positions in the company. Norges Bank purchased a new position in NIKE in the fourth quarter worth approximately $829,956,000. Harris Associates L P purchased a new position in NIKE in the second quarter worth approximately $621,525,000. Capital World Investors lifted its stake in NIKE by 16.2% in the fourth 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 during the last quarter. Capital International Investors lifted its stake in NIKE by 83.3% in the fourth quarter. Capital International Investors now owns 7,642,382 shares of the footwear maker's stock worth $486,895,000 after acquiring an additional 3,472,515 shares during the last quarter. Finally, Ameriprise Financial Inc. lifted its stake in NIKE by 129.4% in the second quarter. Ameriprise Financial Inc. now owns 5,849,636 shares of the footwear maker's stock worth $411,951,000 after acquiring an additional 3,299,155 shares during the last quarter. Institutional investors and hedge funds own 64.25% of the company's stock.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE should get an attention boost from the World Cup, which gives the company a high-profile stage to promote its brand and compete more directly with Adidas. Nike's World Cup play: take on Adidas and revitalize the brand
• Neutral Sentiment: Recent valuation commentary suggests the stock has had mixed performance, with short-term gains offset by weakness over the longer term, keeping investor sentiment cautious. A Look At Nike (NKE) Valuation As Recent Share Performance Remains Mixed
• Negative Sentiment: RBC Capital downgraded NIKE to Sector Perform/Hold and cut its price target, saying the company’s turnaround is taking longer than expected and near-term catalysts look limited. Nike Could Get a World Cup Boost. But Stay Behind the Touchline, Analysts Say.
• Negative Sentiment: Citigroup also lowered its price target on NIKE and kept a neutral view, adding to concerns about margins, brand reset progress, and the credibility of management’s financial targets. Citigroup adjusts Nike's PT to 47 from 53, maintains Neutral rating
• Negative Sentiment: Commentary from analysts and media outlets echoed the same theme: NIKE’s operational turnaround and brand reset are progressing more slowly than hoped, keeping pressure on the shares. Analyst Downgrade Puts Nike Turnaround Pace And Profit Goals In Focus

Wall Street Analysts Forecast Growth

NKE has been the subject of a number of recent research reports. Piper Sandler reiterated a "neutral" rating and issued a $50.00 price target (down from $60.00) on shares of NIKE in a research note on Friday, April 10th. DZ Bank reiterated a "buy" rating on shares of NIKE in a research note on Tuesday, April 21st. Sanford C. Bernstein reiterated a "buy" rating on shares of NIKE in a research note on Monday, May 11th. Robert W. Baird decreased their price target on shares of NIKE from $85.00 to $70.00 and set an "outperform" rating for the company in a research note on Wednesday, April 1st. Finally, The Goldman Sachs Group reiterated a "neutral" rating and issued a $52.00 price target on shares of NIKE in a research note on Friday, June 5th. Fifteen research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $60.89.

Insider Buying and Selling at NIKE

In other NIKE news, Director Robert Holmes Swan bought 11,781 shares of the business's stock in a transaction dated Tuesday, April 7th. The shares were acquired at an average cost of $42.44 per share, with a total value of $499,985.64. Following the acquisition, the director directly owned 55,074 shares of the company's stock, valued at $2,337,340.56. The trade was a 27.21% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Timothy D. Cook bought 25,000 shares of the business's stock in a transaction dated Friday, April 10th. The stock was acquired at an average cost of $42.43 per share, for a total transaction of $1,060,750.00. Following the completion of the acquisition, the director directly owned 130,480 shares in the company, valued at approximately $5,536,266.40. This trade represents a 23.70% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders acquired 64,441 shares of company stock valued at $2,734,204. Insiders own 0.80% of the company's stock.

NIKE Stock Up 4.4%

NKE stock opened at $45.91 on Friday. The company has a current ratio of 2.14, a quick ratio of 1.45 and a debt-to-equity ratio of 0.50. NIKE, Inc. has a twelve month low of $41.35 and a twelve month high of $80.17. The company's 50 day moving average is $44.26 and its two-hundred day moving average is $55.52. The stock has a market cap of $67.99 billion, a P/E ratio of 30.41, a PEG ratio of 1.90 and a beta of 1.12.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings data on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.06. NIKE had a net margin of 4.84% and a return on equity of 16.41%. The company had revenue of $11.28 billion for the quarter, compared to analysts' expectations of $11.23 billion. During the same quarter last year, the company earned $0.54 earnings per share. The firm's revenue for the quarter was up .1% on a year-over-year basis. Research analysts expect that NIKE, Inc. will post 1.49 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be issued a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date of this dividend is Monday, June 1st. NIKE's payout ratio is presently 108.61%.

NIKE Company Profile

Nike, Inc NYSE: NKE is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).

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