Capital World Investors Grows Stock Position in NIKE, Inc. $NKE

Key Points

• Capital World Investors raised its stake in NIKE by 0.7% in Q3 to 42,239,013 shares (about 2.86% ownership), adding 286,615 shares and valuing the position at roughly $2.945 billion.
• NIKE beat quarterly expectations with EPS of $0.53 vs. $0.37 and revenue of $12.43 billion vs. $12.19 billion (revenue +0.6% YoY); analysts have a consensus "Moderate Buy" rating and a $74.61 average price target, with fiscal-year EPS forecasted at 2.05.
• Insiders increased purchases recently: CEO Elliott Hill bought 16,388 shares (~$1.0M) and director Robert Holmes Swan bought 8,691 shares (~$500k); insiders acquired 75,079 shares (~$4.45M) in the last three months and own about 0.80% of the stock.

Capital World Investors lifted its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 0.7% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 42,239,013 shares of the footwear maker's stock after purchasing an additional 286,615 shares during the period. Capital World Investors owned about 2.86% of NIKE worth $2,945,326,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in NKE. Twin Peaks Wealth Advisors LLC bought a new position in NIKE in the second quarter worth approximately $31,000. Guerra Advisors Inc bought a new position in shares of NIKE during the 3rd quarter worth approximately $34,000. Accredited Wealth Management LLC grew its holdings in NIKE by 268.6% in the third quarter. Accredited Wealth Management LLC now owns 516 shares of the footwear maker's stock worth $36,000 after purchasing an additional 376 shares during the last quarter. Abich Financial Wealth Management LLC purchased a new stake in shares of NIKE during the 3rd quarter valued at $43,000. Finally, Financial Consulate Inc. purchased a new stake in shares of NIKE during the third quarter worth about $57,000. Institutional investors own 64.25% of the company's stock.

NIKE Trading Down 0.8%

NKE stock opened at $56.56 on Tuesday. The company's 50-day simple moving average is $63.17 and its 200-day simple moving average is $66.19. The company has a quick ratio of 1.40, a current ratio of 2.06 and a debt-to-equity ratio of 0.50. NIKE, Inc. has a 52-week low of $52.28 and a 52-week high of $80.19. The firm has a market cap of $83.73 billion, a P/E ratio of 33.27, a PEG ratio of 2.92 and a beta of 1.27.

NIKE (NYSE:NKE - Get Free Report) last announced its quarterly earnings results on Thursday, December 18th. The footwear maker reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.16. The firm had revenue of $12.43 billion during the quarter, compared to analyst estimates of $12.19 billion. NIKE had a return on equity of 18.43% and a net margin of 5.43%.NIKE's revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.78 EPS. As a group, equities analysts forecast that NIKE, Inc. will post 2.05 EPS for the current fiscal year.

NIKE Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Monday, March 2nd will be given a $0.41 dividend. The ex-dividend date is Monday, March 2nd. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.9%. NIKE's payout ratio is 96.47%.

Insider Transactions at NIKE

In other NIKE news, CEO Elliott Hill bought 16,388 shares of NIKE stock in a transaction dated Monday, December 29th. The stock was acquired at an average cost of $61.10 per share, with a total value of $1,001,306.80. Following the purchase, the chief executive officer directly owned 241,587 shares in the company, valued at $14,760,965.70. This represents a 7.28% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Robert Holmes Swan purchased 8,691 shares of the company's stock in a transaction that occurred on Monday, December 22nd. The stock was bought at an average cost of $57.54 per share, for a total transaction of $500,080.14. Following the purchase, the director directly owned 43,293 shares in the company, valued at $2,491,079.22. This trade represents a 25.12% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 75,079 shares of company stock valued at $4,449,887 in the last three months. 0.80% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

NKE has been the subject of a number of research reports. Robert W. Baird lowered their price target on NIKE from $93.00 to $85.00 and set an "outperform" rating for the company in a research report on Friday, December 19th. Stifel Nicolaus set a $65.00 price target on shares of NIKE and gave the stock a "hold" rating in a report on Friday, December 19th. Jefferies Financial Group reissued a "buy" rating and set a $110.00 price target on shares of NIKE in a research report on Monday, January 12th. The Goldman Sachs Group dropped their price objective on shares of NIKE from $77.00 to $76.00 and set a "buy" rating on the stock in a report on Thursday, January 29th. Finally, Barclays reiterated a "neutral" rating on shares of NIKE in a research note on Thursday, January 15th. Twenty-two equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $74.61.

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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