BlackRock Inc. Sells 9,984,473 Shares of NIKE, Inc. $NKE

Key Points

• BlackRock reduced its NIKE stake by 10.9% in the second quarter, selling 9.98 million shares and retaining 81.8 million shares worth approximately $3.36 billion. Institutional investors and hedge funds collectively own 64.25% of NIKE.
• NIKE’s latest quarterly results exceeded expectations, with earnings of $0.20 per share and revenue of $10.97 billion, although revenue declined 1.1% year over year. The company declared a quarterly dividend of $0.41 per share, equivalent to a 4.1% annual yield.
• Investor sentiment remains mixed: analysts assign NIKE a consensus “Hold” rating with an average price target of $53.53, while concerns persist over weak digital and direct-to-consumer sales, China-related pressure and the prolonged turnaround.

BlackRock Inc. reduced its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 10.9% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 81,814,490 shares of the footwear maker's stock after selling 9,984,473 shares during the period. BlackRock Inc. owned 5.51% of NIKE worth $3,358,485,000 at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. Scarborough Advisors LLC acquired a new stake in NIKE in the 1st quarter worth about $25,000. Cornerstone Financial Management LLC bought a new position in shares of NIKE in the 4th quarter valued at $26,000. Sankala Group LLC acquired a new position in NIKE during the fourth quarter worth about $26,000. Meeder Asset Management Inc. increased its position in NIKE by 108.4% during the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock worth $29,000 after purchasing an additional 285 shares in the last quarter. Finally, J.Safra Asset Management Corp bought a new position in shares of NIKE in the 4th quarter valued at $29,000. 64.25% of the stock is owned by institutional investors and hedge funds.

NIKE Stock Up 2.5%

NKE stock opened at $40.06 on Wednesday. The stock's 50 day simple moving average is $42.73 and its 200 day simple moving average is $48.29. NIKE, Inc. has a fifty-two week low of $38.86 and a fifty-two week high of $80.17. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. The company has a market cap of $59.43 billion, a P/E ratio of 19.17, a price-to-earnings-growth ratio of 1.81 and a beta of 1.11.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $10.85 billion. During the same quarter in the prior year, the company posted $0.14 earnings per share. The business's revenue was down 1.1% on a year-over-year basis. On average, research analysts expect that NIKE, Inc. will post 1.74 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders 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 4.1%. The ex-dividend date is Tuesday, September 1st. NIKE's dividend payout ratio is 78.47%.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Recent results showed improving wholesale demand, particularly in North America, alongside a sharp improvement in gross margin and better-than-expected earnings. Management’s focus on product innovation and marketplace execution is giving some investors hope that the reset under CEO Elliott Hill can eventually restore growth. Why Nike Stock Is Up Today
• Positive Sentiment: Valuation and income appeal are attracting contrarian investors. The stock offers a dividend yield near 4%, and NIKE could potentially extend its dividend-growth streak for a 25th consecutive year in 2026. Several company insiders have also purchased shares recently. Nike Stock Dividend Outlook
• Neutral Sentiment: Analyst targets imply substantial potential upside, with reports citing an average target around $50.66 and a median six-month target of $47.50. However, targets vary widely, underscoring the uncertainty surrounding the turnaround. Nike Price Target Outlook
• Negative Sentiment: Investors remain concerned that the turnaround is taking too long. NIKE has lost roughly 78% from its 2021 peak and more than $200 billion in market value, while weak direct-to-consumer demand, international pressure and a reported decline in China sales continue to weigh on sentiment. Nike Stock Hits Lowest Level Since 2014
• Negative Sentiment: A recent analyst downgrade and weak digital sales have reinforced fears that product and distribution problems will persist. Technical analysts also describe the stock’s trend as severely damaged, limiting confidence that the current rebound represents a durable bottom. What Is Dragging Nike Down?

Insider Activity at NIKE

In related news, COO Venkatesh Alagirisamy sold 890 shares of NIKE stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $37,024.00. Following the completion of the transaction, the chief operating officer directly owned 74,820 shares in the company, valued at approximately $3,112,512. The trade was a 1.18% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of NIKE stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $102,460.80. Following the transaction, the chief financial officer directly owned 82,165 shares of the company's stock, valued at $3,418,064. The trade was a 2.91% 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 have sold a total of 26,142 shares of company stock worth $1,169,380 in the last ninety days. Corporate insiders own 1.10% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on NKE. BTIG Research reiterated a "buy" rating and issued a $55.00 price objective on shares of NIKE in a report on Wednesday, July 1st. Stifel Nicolaus set a $45.00 price target on shares of NIKE and gave the company a "hold" rating in a research note on Wednesday, July 1st. Oppenheimer cut their price target on shares of NIKE from $120.00 to $60.00 and set an "outperform" rating on the stock in a report on Friday, June 26th. China Renaissance reduced their price objective on shares of NIKE from $50.30 to $47.30 and set a "hold" rating on the stock in a research note on Thursday, July 2nd. Finally, Barclays decreased their price objective on NIKE from $67.00 to $52.00 and set an "overweight" rating for the company in a report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eighteen have issued a Hold rating and five have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $53.53.

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).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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