Concurrent Investment Advisors LLC Boosts Holdings in NIKE, Inc. $NKE

Key Points

• Concurrent Investment Advisors increased its NIKE stake by 30.8% in the second quarter, adding 39,017 shares to reach 165,639 shares valued at approximately $6.8 million. Institutional investors collectively own 64.25% of NKE.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $52.94; several firms recently lowered their targets amid concerns about Nike’s turnaround and profitability.
• NIKE beat quarterly EPS and revenue expectations, but sales declined 1.1% year over year. Shares opened at $38.39, near their 52-week low, while the company maintained a quarterly dividend of $0.41, yielding about 4.3%.

Concurrent Investment Advisors LLC lifted its holdings in NIKE, Inc. (NYSE:NKE - Free Report) by 30.8% in the second quarter, according to its most recent disclosure with the SEC. The institutional investor owned 165,639 shares of the footwear maker's stock after purchasing an additional 39,017 shares during the period. Concurrent Investment Advisors LLC's holdings in NIKE were worth $6,799,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. J. Stern & Co. LLP grew its stake in shares of NIKE by 49,010.4% in the fourth quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker's stock worth $3,061,555,000 after acquiring an additional 47,956,692 shares in the last quarter. Norges Bank purchased a new position in NIKE in the fourth quarter valued at $829,956,000. Flossbach Von Storch SE acquired a new position in NIKE during the 2nd quarter worth $488,714,000. Harris Associates L P purchased a new stake in NIKE during the 2nd quarter worth about $621,525,000. Finally, Capital World Investors raised its position in NIKE by 16.2% in the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock valued at $3,126,246,000 after purchasing an additional 6,830,938 shares in the last quarter. 64.25% of the stock is owned by hedge funds and other institutional investors.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Analysts are bullish on Nike among selected consumer-cyclical companies, supporting the view that the stock’s depressed valuation could offer upside if the company executes its turnaround. Analysts Are Bullish on These Consumer Cyclical Stocks: Nike (NKE), Ferrari (RACE)
• Positive Sentiment: Nike is expanding its Strength Pro Equipment business with customizable Power Rack systems installed at prominent athletic facilities, including U.S. Soccer, USC and professional women’s sports venues. The initiative could deepen institutional relationships and create a broader growth opportunity beyond footwear and apparel. Nike’s Custom Power Racks Might Change The Case For Investing In NIKE (NKE)
• Neutral Sentiment: Some investment coverage describes Nike as potentially undervalued after its steep decline, while emphasizing that the opportunity depends on stabilizing margins and successfully improving the business. Recent earnings also showed an EPS beat and slightly stronger-than-expected revenue, although sales declined year over year. Down almost 80%, is Nike stock undervalued or a value trap?
• Neutral Sentiment: Broader market conditions could affect NKE: investors are focused on the August employment report because it may influence the Federal Reserve’s interest-rate decision later this month. Apparel and luxury-goods stock screens also continue to identify Nike as a company worth watching. 5 Things to Know Before the Stock Market Opens on Friday
• Negative Sentiment: Bearish commentary says Nike faces a difficult turnaround and that its current valuation may provide limited margin of safety, raising the risk that the stock is a value trap if profitability and demand do not recover. Nike: A Difficult Turnaround At A Price That Offers Little Margin of Safety
• Negative Sentiment: Nike is reportedly closing 11 U.S. stores, signaling continued efforts to rationalize its retail footprint and potentially reflecting weaker store economics or changing shopping patterns. Nike closes 11 stores across the US

Analysts Set New Price Targets

NKE has been the subject of several recent research reports. Needham & Company LLC reiterated a "hold" rating on shares of NIKE in a research note on Thursday, June 4th. Guggenheim restated a "buy" rating and set a $60.00 target price (down from $74.00) on shares of NIKE in a research note on Wednesday, July 1st. CICC Research reduced their target price on shares of NIKE from $58.00 to $44.80 and set a "neutral" rating on the stock in a report on Thursday, July 2nd. Berenberg Bank set a $49.00 target price on shares of NIKE and gave the company a "hold" rating in a report on Friday, July 3rd. Finally, Deutsche Bank Aktiengesellschaft lifted their price target on shares of NIKE from $43.00 to $45.00 and gave the stock a "hold" rating in a research note on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $52.94.

Insider Activity at NIKE

In other news, insider Amy Montagne sold 4,867 shares of the company's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the completion of the transaction, the insider owned 57,436 shares in the company, valued at approximately $2,415,183.80. This represents a 7.81% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Matthew Friend sold 2,463 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total transaction of $102,460.80. Following the completion of the transaction, the chief financial officer directly owned 82,165 shares in the company, valued at $3,418,064. This trade represents a 2.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 26,142 shares of company stock worth $1,169,380 in the last ninety days. Company insiders own 1.10% of the company's stock.

NIKE Trading Down 1.0%

NYSE:NKE opened at $38.39 on Friday. The stock has a 50-day simple moving average of $41.58 and a 200-day simple moving average of $46.28. The stock has a market cap of $56.95 billion, a P/E ratio of 18.37, a P/E/G ratio of 1.88 and a beta of 1.10. NIKE, Inc. has a 1 year low of $37.95 and a 1 year high of $76.97. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The business 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 business posted $0.14 EPS. The business's revenue for the quarter was down 1.1% on a year-over-year basis. As a group, analysts anticipate that NIKE, Inc. will post 1.74 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be paid a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 4.3%. The ex-dividend date is Tuesday, September 1st. NIKE's dividend payout ratio is currently 78.47%.

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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