California State Teachers Retirement System Grows Stock Holdings in NIKE, Inc. $NKE

Key Points

• CalSTRS dramatically increased its NIKE stake by 4,052.9% in the second quarter, owning 75.6 million shares valued at approximately $3.1 billion, or 5.1% of the company. Institutional investors collectively own 64.25% of NIKE.
• Analyst sentiment remains cautious: NIKE has a consensus “Hold” rating and an average price target of $50.12, with recent targets ranging from $31 to $52 amid concerns about operating weakness and competitive pressures.
• NIKE shares opened at $36.57, near their 52-week low, despite the company beating quarterly earnings expectations. NIKE also declared a quarterly dividend of $0.41 per share, equivalent to a 4.5% annualized yield.

California State Teachers Retirement System raised its holdings in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 4,052.9% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 75,611,801 shares of the footwear maker's stock after acquiring an additional 73,791,103 shares during the quarter. California State Teachers Retirement System owned about 5.10% of NIKE worth $3,103,864,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently made changes to their positions in NKE. Westerkirk Capital Inc. grew its stake in NIKE by 52.4% during the fourth quarter. Westerkirk Capital Inc. now owns 131,220 shares of the footwear maker's stock valued at $8,360,000 after acquiring an additional 45,100 shares in the last quarter. OMERS ADMINISTRATION Corp increased its holdings in NIKE by 77.9% during the 4th quarter. OMERS ADMINISTRATION Corp now owns 2,526,179 shares of the footwear maker's stock worth $160,943,000 after acquiring an additional 1,106,499 shares during the period. OneDigital Investment Advisors LLC lifted its stake in NIKE by 32.8% in the 2nd quarter. OneDigital Investment Advisors LLC now owns 244,296 shares of the footwear maker's stock worth $10,028,000 after purchasing an additional 60,375 shares in the last quarter. Deutsche Bank AG lifted its stake in NIKE by 8.0% in the 2nd quarter. Deutsche Bank AG now owns 3,566,634 shares of the footwear maker's stock worth $146,410,000 after purchasing an additional 264,576 shares in the last quarter. Finally, Stoneridge Investment Partners LLC boosted its holdings in NIKE by 1,253.6% in the 4th quarter. Stoneridge Investment Partners LLC now owns 78,846 shares of the footwear maker's stock valued at $5,023,000 after purchasing an additional 73,021 shares during the period. 64.25% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Morgan Stanley set a $31.00 price target on shares of NIKE and gave the company an "underweight" rating in a research report on Thursday. Barclays lowered their price objective on NIKE from $67.00 to $52.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 1st. UBS Group reissued a "neutral" rating on shares of NIKE in a research note on Wednesday. Wells Fargo & Company reduced their target price on NIKE from $45.00 to $40.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 1st. Finally, Truist Financial set a $42.00 target price on NIKE and gave the stock a "hold" rating in a research note on Wednesday, August 26th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty have given a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $50.12.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Neutral Sentiment: Shareholders approved an expanded employee stock purchase plan adopted by NIKE’s board in July. The plan could support employee retention, although the potential for additional share issuance may limit its benefit to existing investors. Nike Shareholders Approve Expanded Employee Stock Purchase Plan
• Neutral Sentiment: Some commentary argues that NIKE’s underlying business is not fundamentally broken and that its depressed valuation and dividend yield could appeal to long-term investors, though a turnaround remains necessary. Nike: The Sentiment Is Bleak, But The Underlying Business Is Not Broken
• Negative Sentiment: Morgan Stanley warned that the pain may not be over, citing persistent operating weakness, disappointing share performance and NIKE’s imminent removal from the S&P 100. Morgan Stanley Says the Pain May Not Be Over Yet
• Negative Sentiment: BMO initiated coverage with an Underperform rating, pointing to challenges facing NIKE and the broader athletic-apparel market. The new bearish call adds to pressure on the stock. BMO Says Sell Nike Stock
• Negative Sentiment: NIKE is set to lose its S&P 100 membership after nearly 18 years, a high-profile consequence of its severe decline that could reduce index-related demand and reinforce negative sentiment. Nike Loses Its S&P 100 Membership
• Negative Sentiment: Analysts continue to cite shifting consumer preferences, intense competition and NIKE’s broad product and market exposure as structural challenges, leaving investors concerned that a recovery could take time. Shifting Consumer Preferences Continue to Impact Nike and Lululemon

NIKE Price Performance

Shares of NYSE:NKE opened at $36.57 on Friday. The company's fifty day moving average price is $41.19 and its 200-day moving average price is $45.38. The firm has a market capitalization of $54.25 billion, a price-to-earnings ratio of 17.50, a PEG ratio of 1.83 and a beta of 1.10. NIKE, Inc. has a one year low of $36.55 and a one year high of $76.97. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36.

NIKE (NYSE:NKE - Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share 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 firm had revenue of $10.97 billion for the quarter, compared to analysts' expectations of $10.85 billion. During the same quarter last year, the company posted $0.14 EPS. The business's quarterly revenue was down 1.1% on a year-over-year basis. On average, equities research analysts anticipate that NIKE, Inc. will post 1.74 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors 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 4.5%. The ex-dividend date of this dividend is Tuesday, September 1st. NIKE's dividend payout ratio is currently 78.47%.

Insider Transactions at NIKE

In other news, COO Venkatesh Alagirisamy sold 3,671 shares of the company's stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $137,992.89. Following the completion of the transaction, the chief operating officer directly owned 104,862 shares in the company, valued at approximately $3,941,762.58. This represents a 3.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the transaction, the insider owned 57,436 shares in the company, valued at $2,415,183.80. This trade represents a 7.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 14,974 shares of company stock worth $600,126. Company insiders own 1.10% of the company's stock.

About NIKE

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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