Cutler Investment Counsel LLC Increases Position in NIKE, Inc. $NKE

Key Points

• Cutler Investment Counsel LLC boosted its NIKE stake by 26.1% in the fourth quarter, adding 24,916 shares and bringing its total to 120,391 shares valued at about $7.7 million.
• Insider buying was notable, with Director Timothy D. Cook and CEO Elliott Hill purchasing shares in April; insiders bought 64,441 shares worth about $2.73 million over the last 90 days.
• Sentiment around NIKE remains mixed: analysts have mostly a Hold consensus, and several firms recently cut ratings or price targets as they said the company’s turnaround and brand reset are taking longer than expected.

Cutler Investment Counsel LLC increased its position in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 26.1% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund owned 120,391 shares of the footwear maker's stock after purchasing an additional 24,916 shares during the quarter. Cutler Investment Counsel LLC's holdings in NIKE were worth $7,716,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also made changes to their positions in NKE. J.Safra Asset Management Corp acquired a new stake in shares of NIKE during the 4th quarter worth about $29,000. Gordian Capital Singapore Pte Ltd purchased a new stake in shares of NIKE during the 3rd quarter valued at $35,000. Accredited Wealth Management LLC increased its stake in NIKE by 268.6% during the third quarter. Accredited Wealth Management LLC now owns 516 shares of the footwear maker's stock worth $36,000 after acquiring an additional 376 shares during the last quarter. Matrix Trust Co increased its position in NIKE by 43.6% during the 4th quarter. Matrix Trust Co now owns 596 shares of the footwear maker's stock worth $38,000 after purchasing an additional 181 shares in the last quarter. Finally, Jessup Wealth Management Inc purchased a new position in shares of NIKE in the 4th quarter valued at $38,000. 64.25% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director Timothy D. Cook purchased 25,000 shares of the company's stock in a transaction dated Friday, April 10th. The shares were acquired at an average cost of $42.43 per share, with a total value of $1,060,750.00. Following the completion of the purchase, the director owned 130,480 shares of the company's stock, valued at $5,536,266.40. The trade was a 23.70% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Elliott Hill bought 23,660 shares of the company's stock in a transaction on Monday, April 13th. The stock was purchased 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. The trade was a 9.79% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders purchased 64,441 shares of company stock worth $2,734,204. Insiders own 0.80% of the company's stock.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE should get an attention boost from the World Cup, which gives the company a high-profile stage to promote its brand and compete more directly with Adidas. Nike's World Cup play: take on Adidas and revitalize the brand
• Neutral Sentiment: Recent valuation commentary suggests the stock has had mixed performance, with short-term gains offset by weakness over the longer term, keeping investor sentiment cautious. A Look At Nike (NKE) Valuation As Recent Share Performance Remains Mixed
• Negative Sentiment: RBC Capital downgraded NIKE to Sector Perform/Hold and cut its price target, saying the company’s turnaround is taking longer than expected and near-term catalysts look limited. Nike Could Get a World Cup Boost. But Stay Behind the Touchline, Analysts Say.
• Negative Sentiment: Citigroup also lowered its price target on NIKE and kept a neutral view, adding to concerns about margins, brand reset progress, and the credibility of management’s financial targets. Citigroup adjusts Nike's PT to 47 from 53, maintains Neutral rating
• Negative Sentiment: Commentary from analysts and media outlets echoed the same theme: NIKE’s operational turnaround and brand reset are progressing more slowly than hoped, keeping pressure on the shares. Analyst Downgrade Puts Nike Turnaround Pace And Profit Goals In Focus

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on NKE shares. DA Davidson downgraded NIKE from a "buy" rating to a "neutral" rating and dropped their target price for the company from $72.00 to $46.00 in a report on Thursday, April 2nd. Piper Sandler reaffirmed a "neutral" rating and set a $50.00 price target (down from $60.00) on shares of NIKE in a research report on Friday, April 10th. Berenberg Bank reiterated a "neutral" rating on shares of NIKE in a research note on Wednesday, May 6th. Telsey Advisory Group reduced their price target on shares of NIKE from $65.00 to $55.00 and set a "market perform" rating on the stock in a research report on Wednesday, April 1st. Finally, Needham & Company LLC reissued a "hold" rating on shares of NIKE in a report on Thursday, June 4th. Fifteen research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $60.89.

NIKE Price Performance

Shares of NYSE:NKE opened at $45.91 on Friday. 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, Inc. has a one year low of $41.35 and a one year high of $80.17. The company has a market capitalization of $67.99 billion, a PE ratio of 30.41, a price-to-earnings-growth ratio of 1.90 and a beta of 1.12. The stock has a fifty day moving average of $44.26 and a 200-day moving average of $55.52.

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

NIKE Dividend Announcement

The firm also recently announced 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 annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend is Monday, June 1st. NIKE's dividend payout ratio (DPR) is 108.61%.

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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