Diamant Asset Management Inc. Acquires 1,874,288 Shares of NIKE, Inc. $NKE

Key Points

• Diamant Asset Management massively increased its NIKE stake in Q1, buying 1.87 million additional shares and bringing its holdings to 1.88 million shares worth about $99.3 million.
• NIKE’s latest quarter beat expectations, with EPS of $0.35 versus the $0.29 estimate and revenue of $11.28 billion slightly above forecasts, though sales were only up 0.1% year over year.
• The stock is under pressure near its 52-week low, while Wall Street remains cautious ahead of earnings and NIKE’s turnaround, with analysts focused on guidance, margin trends, China weakness, and the “Win Now” strategy.

Diamant Asset Management Inc. raised its holdings in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 38,757.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,879,124 shares of the footwear maker's stock after buying an additional 1,874,288 shares during the quarter. Diamant Asset Management Inc. owned about 0.13% of NIKE worth $99,255,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in the business. Cornerstone Financial Management LLC purchased a new position in shares of NIKE during the fourth quarter worth about $26,000. Sankala Group LLC purchased a new stake in NIKE in the fourth quarter valued at approximately $26,000. J.Safra Asset Management Corp purchased a new stake in NIKE in the fourth quarter valued at approximately $29,000. Kemnay Advisory Services Inc. bought a new stake in NIKE during the fourth quarter valued at approximately $30,000. Finally, Gordian Capital Singapore Pte Ltd purchased a new position in NIKE in the 3rd quarter worth approximately $35,000. 64.25% of the stock is currently owned by institutional investors.

NIKE Trading Down 0.3%

Shares of NKE opened at $40.76 on Friday. The firm has a market cap of $60.36 billion, a price-to-earnings ratio of 26.99, a PEG ratio of 1.77 and a beta of 1.12. 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 fifty-two week low of $40.00 and a fifty-two week high of $80.17. The firm has a 50 day moving average price of $44.19 and a 200-day moving average price of $53.96.

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

NIKE Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be given a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 4.0%. The ex-dividend date is Monday, June 1st. NIKE's dividend payout ratio is presently 108.61%.

Insider Activity

In related news, Director Robert Holmes Swan acquired 11,781 shares of NIKE stock in a transaction dated Tuesday, April 7th. The shares were purchased at an average cost of $42.44 per share, with a total value of $499,985.64. Following the completion of the purchase, the director owned 55,074 shares of the company's stock, valued at $2,337,340.56. This represents a 27.21% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Philip Mccartney sold 17,398 shares of NIKE stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $46.18, for a total value of $803,439.64. Following the completion of the transaction, the executive vice president owned 53,133 shares in the company, valued at approximately $2,453,681.94. This represents a 24.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders purchased 64,441 shares of company stock valued at $2,734,204. Company insiders own 0.80% of the company's stock.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Oppenheimer lowered its price target to $60 but kept an outperform rating, signaling some analysts still see meaningful upside from current levels. Oppenheimer target update
• Positive Sentiment: Investors are also watching for any improvement from NIKE’s “Win Now” turnaround strategy and upcoming guidance, which could help support sentiment if management shows clearer progress. Nike fiscal Q4 preview
• Neutral Sentiment: NIKE is expected to report results after Tuesday’s close, and traders are bracing for a potentially large post-earnings move as attention centers on revenue trends, margins, and forward guidance. Investopedia earnings move preview
• Neutral Sentiment: Wall Street is closely focused on the new CFO transition, with investors waiting to see whether leadership changes help or hurt execution in the near term. Nike shares in focus as company names new CFO
• Negative Sentiment: KeyBanc turned more cautious, saying NIKE’s recovery is taking longer than expected amid slower turnaround progress and stronger competition from rivals. KeyBanc downgrade
• Negative Sentiment: Other coverage points to a “soft” quarter, with pressure from China weakness, tariffs, promotions, and operational uncertainty weighing on expectations ahead of earnings. Nike likely to report soft quarterly results
• Negative Sentiment: Stifel and Deutsche Bank also cut price targets, reinforcing a more cautious Street view before the report. Stifel target cut Deutsche Bank target cut

Wall Street Analyst Weigh In

A number of brokerages have recently commented on NKE. Telsey Advisory Group decreased their price target on shares of NIKE from $65.00 to $55.00 and set a "market perform" rating on the stock in a report on Wednesday, April 1st. Wells Fargo & Company set a $45.00 target price on shares of NIKE and gave the stock an "equal weight" rating in a research report on Friday, May 8th. China Renaissance reduced their target price on NIKE from $74.60 to $50.30 and set a "hold" rating on the stock in a research note on Thursday, April 2nd. DZ Bank restated a "buy" rating on shares of NIKE in a research report on Tuesday, April 21st. Finally, Berenberg Bank reaffirmed a "neutral" rating on shares of NIKE in a research note on Wednesday, May 6th. Fourteen research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $59.01.

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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