Cullen Frost Bankers Inc. Lowers Position in NIKE, Inc. $NKE

Key Points

• Cullen Frost Bankers Inc. cut its NIKE stake by 33.1% in the fourth quarter, selling 48,386 shares and leaving it with 97,868 shares worth about $6.24 million.
• NIKE reported better-than-expected quarterly results, with earnings of $0.35 per share versus $0.29 expected and revenue of $11.28 billion versus $11.23 billion expected.
• Despite mixed analyst sentiment, insider buying and recent share gains have supported the stock: CEO Elliott Hill and Director Timothy D. Cook both purchased shares, while NIKE stock was up 4.2% in Thursday trading.

Cullen Frost Bankers Inc. reduced its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 33.1% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 97,868 shares of the footwear maker's stock after selling 48,386 shares during the quarter. Cullen Frost Bankers Inc.'s holdings in NIKE were worth $6,235,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Vanguard Group Inc. raised its position in NIKE by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 116,993,541 shares of the footwear maker's stock valued at $7,453,658,000 after buying an additional 1,702,342 shares during the last quarter. Capital World Investors raised its position in NIKE by 0.7% in the 3rd quarter. Capital World Investors now owns 42,239,013 shares of the footwear maker's stock valued at $2,945,326,000 after buying an additional 286,615 shares during the last quarter. Flossbach Von Storch SE raised its position in NIKE by 29.3% in the 4th quarter. Flossbach Von Storch SE now owns 12,753,317 shares of the footwear maker's stock valued at $812,514,000 after buying an additional 2,886,856 shares during the last quarter. Invesco Ltd. raised its position in NIKE by 3.3% in the 3rd quarter. Invesco Ltd. now owns 12,561,334 shares of the footwear maker's stock valued at $875,902,000 after buying an additional 404,136 shares during the last quarter. Finally, Jennison Associates LLC raised its position in NIKE by 42.3% in the 3rd quarter. Jennison Associates LLC now owns 11,838,528 shares of the footwear maker's stock valued at $825,501,000 after buying an additional 3,518,666 shares during the last quarter. 64.25% of the stock is owned by hedge funds and other institutional investors.

NIKE Stock Up 4.2%

Shares of NYSE:NKE opened at $44.20 on Thursday. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.14 and a quick ratio of 1.45. The company has a market capitalization of $65.45 billion, a PE ratio of 29.27, a price-to-earnings-growth ratio of 2.25 and a beta of 1.12. NIKE, Inc. has a 1 year low of $41.35 and a 1 year high of $80.17. The business has a fifty day moving average price of $47.05 and a two-hundred day moving average price of $57.55.

NIKE (NYSE:NKE - Get Free Report) last posted its quarterly earnings results on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.06. The company 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 firm's quarterly revenue was up .1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.54 EPS. Analysts forecast that NIKE, Inc. will post 1.51 earnings per share for the current year.

NIKE Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be paid a dividend of $0.41 per share. The ex-dividend date is Monday, June 1st. This represents a $1.64 annualized dividend and a dividend yield of 3.7%. NIKE's dividend payout ratio is presently 108.61%.

Wall Street Analyst Weigh In

A number of research firms recently commented on NKE. Royal Bank Of Canada reissued a "buy" rating on shares of NIKE in a research report on Wednesday, April 1st. HSBC lowered NIKE from a "buy" rating to a "hold" rating and lowered their price target for the company from $90.00 to $48.00 in a research report on Monday, April 13th. Bank of America restated a "neutral" rating and issued a $55.00 price objective (down from $73.00) on shares of NIKE in a research note on Wednesday, April 1st. Robert W. Baird reduced their price objective on NIKE from $85.00 to $70.00 and set an "outperform" rating for the company in a research note on Wednesday, April 1st. Finally, The Goldman Sachs Group restated a "neutral" rating and issued a $52.00 price objective (down from $76.00) on shares of NIKE in a research note on Wednesday, April 1st. Sixteen analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $62.04.

Insider Transactions at NIKE

In other news, CEO Elliott Hill purchased 23,660 shares of the business's stock in a transaction dated Monday, April 13th. The stock was bought at an average price of $42.27 per share, for a total transaction of $1,000,108.20. Following the purchase, the chief executive officer owned 265,247 shares of the company's stock, valued at $11,211,990.69. The trade was a 9.79% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Timothy D. Cook purchased 25,000 shares of the business's stock in a transaction dated Friday, April 10th. The shares were purchased at an average price of $42.43 per share, with a total value of $1,060,750.00. Following the purchase, the director directly owned 130,480 shares in the company, valued at $5,536,266.40. This trade 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 worth $2,734,204 over the last 90 days. 0.80% of the stock is owned by insiders.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Unusual options activity pointed to bullish positioning, with investors buying 181,748 call options on NIKE, well above the recent average, suggesting traders are betting on further upside.
• Positive Sentiment: NIKE shares gained alongside discretionary stocks as softer energy prices and easing Treasury yields improved sentiment toward consumer names, which can support spending expectations and valuation multiples. Nike Stock Soars As Energy Prices And Bond Yields Drop
• Neutral Sentiment: Market commentary continues to debate whether NIKE is attractive at current levels, with some analysts saying the stock is still not cheap enough while others argue the risk/reward is becoming more balanced. Nike: Tough Environment, But Risks Are Priced In Nike: Not Cheap Enough Yet
• Neutral Sentiment: Additional coverage focused on NIKE’s strategic efforts, including discussion of China, athlete-led innovation, and AI-related initiatives, but these headlines do not yet point to a clear near-term fundamental catalyst.
• Negative Sentiment: Persistent worries about China remain a drag on sentiment, with reports citing weak demand, tougher local competition, and inventory issues that could continue to pressure sales and margins.
• Negative Sentiment: Some investors remain cautious after NIKE’s recent struggles, and commentary that the company is “struggling” reinforces concerns that a full recovery may take time.

About NIKE

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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