Capital International Ltd. CA Cuts Stake in NIKE, Inc. $NKE

Key Points

• Capital International Ltd. CA reduced its NIKE stake by 30.1% in the fourth quarter, selling 59,144 shares and ending with 137,280 shares valued at about $8.75 million.
• NIKE’s latest quarterly results came in slightly better than expected, with EPS of $0.35 versus the $0.29 consensus and revenue of $11.28 billion versus $11.23 billion expected.
• The stock remains under pressure, opening at $43.05 and trading near its 52-week low, while analysts currently rate NIKE a Hold with a consensus price target of $62.04.

Capital International Ltd. CA cut its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 30.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 137,280 shares of the footwear maker's stock after selling 59,144 shares during the quarter. Capital International Ltd. CA's holdings in NIKE were worth $8,746,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in NKE. Brighton Jones LLC raised its position in NIKE by 388.5% in the fourth quarter. Brighton Jones LLC now owns 202,411 shares of the footwear maker's stock valued at $15,316,000 after purchasing an additional 160,980 shares during the period. Caxton Associates LLP purchased a new position in NIKE in the first quarter valued at about $311,000. United Bank raised its position in NIKE by 11.3% in the second quarter. United Bank now owns 17,067 shares of the footwear maker's stock valued at $1,212,000 after purchasing an additional 1,736 shares during the period. NewEdge Advisors LLC raised its position in NIKE by 0.3% in the second quarter. NewEdge Advisors LLC now owns 64,161 shares of the footwear maker's stock valued at $4,558,000 after purchasing an additional 197 shares during the period. Finally, CIBC Asset Management Inc raised its position in NIKE by 6.5% in the second quarter. CIBC Asset Management Inc now owns 191,268 shares of the footwear maker's stock valued at $13,588,000 after purchasing an additional 11,646 shares during the period. 64.25% of the stock is owned by hedge funds and other institutional investors.

NIKE Stock Down 1.3%

NYSE:NKE opened at $43.05 on Friday. The company has a market capitalization of $63.75 billion, a price-to-earnings ratio of 28.51, a price-to-earnings-growth ratio of 1.86 and a beta of 1.12. NIKE, Inc. has a one year low of $41.35 and a one year high of $80.17. The stock has a 50-day simple moving average of $44.85 and a 200 day simple moving average of $56.08. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.45 and a current ratio of 2.14.

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

NIKE Dividend Announcement

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

Key Stories Impacting NIKE

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

Insider Transactions at NIKE

In other news, Director John W. Rogers, Jr. purchased 4,000 shares of the firm's stock in a transaction that occurred on Thursday, April 9th. The stock was acquired at an average cost of $43.34 per share, for a total transaction of $173,360.00. Following the completion of the purchase, the director owned 41,022 shares of the company's stock, valued at approximately $1,777,893.48. This trade represents a 10.80% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Timothy D. Cook purchased 25,000 shares of the firm's stock in a transaction that occurred on Friday, April 10th. The stock was purchased at an average price of $42.43 per share, with a total value of $1,060,750.00. Following the completion of the purchase, the director directly owned 130,480 shares of the company's stock, valued at approximately $5,536,266.40. This represents a 23.70% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 64,441 shares of company stock valued at $2,734,204 over the last ninety days. 0.80% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several research analysts have commented on the company. Sanford C. Bernstein reissued a "buy" rating on shares of NIKE in a research report on Monday, May 11th. BNP Paribas Exane cut their price objective on NIKE from $35.00 to $23.00 and set an "underperform" rating on the stock in a research report on Wednesday, April 1st. Robert W. Baird lowered their target price on NIKE from $85.00 to $70.00 and set an "outperform" rating for the company in a research note on Wednesday, April 1st. Barclays lowered their target price on NIKE from $73.00 to $67.00 and set an "overweight" rating for the company in a research note on Wednesday, April 1st. Finally, HSBC downgraded NIKE from a "buy" rating to a "hold" rating and lowered their target price for the company from $90.00 to $48.00 in a research note on Monday, April 13th. Sixteen analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, NIKE has a consensus rating of "Hold" and a consensus price target of $62.04.

NIKE 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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