Cacti Asset Management LLC Boosts Stock Position in NIKE, Inc. $NKE

Key Points

• Cacti Asset Management increased its NIKE stake by 7.7% in the second quarter, bringing its holdings to 348,782 shares valued at approximately $14.3 million. Institutional investors collectively own 64.25% of NIKE.
• NIKE reported quarterly EPS of $0.20, exceeding estimates of $0.11, while revenue reached $10.97 billion. However, revenue declined 1.1% year over year, and the stock opened at $42.63 near its 12-month low.
• Analysts remain cautious, with several firms cutting price targets and the stock carrying a consensus “Hold” rating. The average price target is $53.74, compared with recent trading levels around $42.63.

Cacti Asset Management LLC boosted its stake in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 7.7% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 348,782 shares of the footwear maker's stock after acquiring an additional 24,816 shares during the quarter. NIKE comprises 0.7% of Cacti Asset Management LLC's investment portfolio, making the stock its 24th biggest holding. Cacti Asset Management LLC's holdings in NIKE were worth $14,318,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Scarborough Advisors LLC acquired a new stake in shares of NIKE during the first quarter worth $25,000. Cornerstone Financial Management LLC purchased a new position in NIKE in the 4th quarter valued at $26,000. Sankala Group LLC acquired a new position in NIKE in the 4th quarter valued at $26,000. Meeder Asset Management Inc. increased its stake in NIKE by 108.4% in the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock valued at $29,000 after buying an additional 285 shares during the period. Finally, J.Safra Asset Management Corp purchased a new position in NIKE during the 4th quarter worth $29,000. 64.25% of the stock is currently owned by hedge funds and other institutional investors.

NIKE Stock Performance

NYSE:NKE opened at $42.63 on Tuesday. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40. The firm has a 50-day moving average price of $43.52 and a two-hundred day moving average price of $50.09. NIKE, Inc. has a twelve month low of $40.00 and a twelve month high of $80.17. The company has a market capitalization of $63.25 billion, a P/E ratio of 20.40, a price-to-earnings-growth ratio of 1.85 and a beta of 1.12.

NIKE (NYSE:NKE - Get Free Report) last announced 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 net margin of 6.70% and a return on equity of 16.54%. The company 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 firm earned $0.14 earnings per share. The company's revenue for the quarter was down 1.1% compared to the same quarter last year. As a group, research analysts expect that NIKE, Inc. will post 1.74 earnings per share for the current fiscal year.

Insider Activity

In related news, EVP Philip Mccartney sold 17,398 shares of NIKE stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $46.18, for a total transaction of $803,439.64. Following the completion of the transaction, the executive vice president directly owned 53,133 shares in the company, valued at $2,453,681.94. The trade was a 24.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 1.10% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Bank of America reduced their target price on shares of NIKE from $55.00 to $47.00 and set a "neutral" rating for the company in a research note on Wednesday, July 1st. Citigroup reissued a "neutral" rating on shares of NIKE in a report on Wednesday, July 22nd. Piper Sandler lowered their price objective on NIKE from $50.00 to $45.00 and set a "neutral" rating on the stock in a report on Wednesday, July 1st. Wells Fargo & Company lowered their price objective on NIKE from $45.00 to $40.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 1st. Finally, Guggenheim reiterated a "buy" rating and set a $60.00 target price (down from $74.00) on shares of NIKE in a research report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nineteen have assigned a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $53.74.

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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