Capital International Investors Buys 3,472,515 Shares of NIKE, Inc. $NKE

Key Points

• Capital International Investors increased its NIKE stake by 83.3% in the fourth quarter, buying 3.47 million additional shares and bringing its total holding to 7.64 million shares worth about $486.9 million.
• NIKE reported quarterly earnings of $0.35 per share, topping estimates, with revenue of $11.28 billion also slightly above expectations. Analysts currently expect the company to earn $1.49 per share for the year.
• The company declared a quarterly dividend of $0.41 per share, equal to an annualized yield of 3.8%, while insiders including CEO Elliott Hill and Director Timothy D. Cook also recently bought shares.

Capital International Investors grew its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 83.3% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 7,642,382 shares of the footwear maker's stock after purchasing an additional 3,472,515 shares during the period. Capital International Investors owned approximately 0.52% of NIKE worth $486,895,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently modified their holdings of NKE. Mizuho Markets Cayman LP bought a new position in NIKE during the third quarter worth about $34,200,000. PFA Pension Forsikringsaktieselskab bought a new position in NIKE during the fourth quarter worth about $43,188,000. Strive Asset Management LLC bought a new position in NIKE during the third quarter worth about $1,743,000. Nicholas Company Inc. grew its holdings in NIKE by 33.3% during the fourth quarter. Nicholas Company Inc. now owns 123,652 shares of the footwear maker's stock worth $7,878,000 after purchasing an additional 30,890 shares during the period. Finally, Park National Corp OH grew its holdings in NIKE by 81.5% during the fourth quarter. Park National Corp OH now owns 431,055 shares of the footwear maker's stock worth $27,463,000 after purchasing an additional 193,514 shares during the period. 64.25% of the stock is currently owned by institutional investors.

NIKE Trading Up 0.2%

Shares of NKE stock opened at $43.05 on Monday. The firm has a 50 day moving average price of $44.85 and a two-hundred day moving average price of $56.03. The company has a quick ratio of 1.45, a current ratio of 2.14 and a debt-to-equity ratio of 0.50. The company has a market capitalization of $63.75 billion, a PE ratio of 28.51, a price-to-earnings-growth ratio of 1.86 and a beta of 1.12. NIKE, Inc. has a 12-month low of $41.35 and a 12-month high of $80.17.

NIKE (NYSE:NKE - Get Free Report) last issued its quarterly earnings data on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.06. NIKE had a net margin of 4.84% and a return on equity of 16.41%. The firm had revenue of $11.28 billion during the quarter, compared to the consensus estimate of $11.23 billion. During the same period last year, the business posted $0.54 earnings per share. The business's revenue for the quarter was up .1% compared to the same quarter last year. As a group, analysts predict that NIKE, Inc. will post 1.49 earnings per share for the current year.

NIKE Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be given a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date is Monday, June 1st. NIKE's payout ratio is presently 108.61%.

Insider Buying and Selling at NIKE

In other NIKE news, CEO Elliott Hill purchased 23,660 shares of the company's stock in a transaction dated Monday, April 13th. The stock was bought at an average cost of $42.27 per share, for a total transaction of $1,000,108.20. Following the completion of the transaction, the chief executive officer owned 265,247 shares in the company, valued at approximately $11,211,990.69. This represents a 9.79% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, Director Timothy D. Cook purchased 25,000 shares of the company's stock in a transaction dated Friday, April 10th. The stock was acquired at an average price of $42.43 per share, with a total value of $1,060,750.00. Following the completion of the transaction, the director owned 130,480 shares of the company's stock, valued at $5,536,266.40. This represents a 23.70% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 64,441 shares of company stock valued at $2,734,204 in the last three months. Corporate insiders own 0.80% of the company's stock.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE is leaning into its football business ahead of the World Cup, and analysts said the company’s investor event reinforced CEO Elliott Hill’s plan to rebuild the brand sport by sport and region by region. That could support the long-term turnaround narrative. Nike bets big on Beautiful Game ahead of World Cup
• Positive Sentiment: Investor interest in NIKE remains elevated, with recent coverage highlighting that the stock is still drawing attention from market watchers as they evaluate the company’s outlook and earnings trajectory. NIKE, Inc. (NKE) is Attracting Investor Attention: Here is What You Should Know
• Positive Sentiment: NIKE continues to push a high-profile marketing campaign, “Rip The Script,” featuring major athletes and celebrities, which may help brand visibility and demand heading into a key sports calendar. NKE Stock Eyes Red Week Ahead Of FIFA World Cup: Nike’s Star-Studded Campaign Can’t Stop It From Falling
• Neutral Sentiment: Several articles focused on shifting investor narratives and watched-the-stock commentary, but no new price target or major fundamental update was announced, limiting the immediate catalyst. How The Narrative Around Nike (NKE) Is Evolving Without A New Price Target
• Neutral Sentiment: Commentary on a possible legal inquiry about insider duties did not provide clear evidence of wrongdoing, so it is more of a headline risk than a confirmed stock-moving event. Did NIKE, Inc. Insiders Breach their Fiduciary Duties to Shareholders?
• Negative Sentiment: Some coverage suggests NIKE still faces questions about regaining momentum in a changing consumer market, while the stock has also been pressured by broader concerns that the turnaround may take time. Can Nike Regain Momentum In A Changing Consumer Market?
• Negative Sentiment: Market chatter also highlights a “red week” narrative ahead of the FIFA World Cup, implying investors remain skeptical that NIKE’s ad campaign alone will quickly reverse the stock’s weakness. Curry Defection And World Cup Push Test Nike Turnaround Expectations

Wall Street Analyst Weigh In

NKE has been the subject of a number of research analyst reports. Weiss Ratings upgraded NIKE from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, May 22nd. Zacks Research downgraded shares of NIKE from a "hold" rating to a "strong sell" rating in a research report on Monday, June 1st. CICC Research downgraded shares of NIKE from an "outperform" rating to a "market perform" rating and cut their price objective for the stock from $69.00 to $58.00 in a research report on Monday, April 6th. Guggenheim cut their price objective on shares of NIKE from $77.00 to $74.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Finally, Evercore cut their price objective on shares of NIKE from $69.00 to $57.00 and set an "outperform" rating for the company in a research report on Wednesday, April 1st. Sixteen investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $62.04.

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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