Dividend Assets Capital LLC Buys 24,575 Shares of NIKE, Inc. $NKE

Key Points

• Dividend Assets Capital LLC increased its NIKE stake by 26% in the first quarter, buying 24,575 additional shares and bringing its total holding to 119,111 shares worth about $6.29 million.
• NIKE reported a quarterly earnings beat, posting EPS of $0.20 versus the $0.11 estimate and revenue of $10.97 billion versus expectations of $10.85 billion, though sales were still down 1.1% from a year earlier.
• Analyst sentiment remains cautious: several firms cut price targets, and MarketBeat data shows NIKE currently has an average Hold rating with a consensus price target of $55.42.

Dividend Assets Capital LLC lifted its stake in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 26.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 119,111 shares of the footwear maker's stock after purchasing an additional 24,575 shares during the quarter. Dividend Assets Capital LLC's holdings in NIKE were worth $6,291,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Westerkirk Capital Inc. raised its holdings in shares of NIKE by 52.4% in the 4th quarter. Westerkirk Capital Inc. now owns 131,220 shares of the footwear maker's stock worth $8,360,000 after purchasing an additional 45,100 shares during the period. Mizuho Markets Cayman LP purchased a new position in NIKE in the third quarter valued at approximately $34,200,000. OMERS ADMINISTRATION Corp grew its holdings in NIKE by 77.9% during the fourth quarter. OMERS ADMINISTRATION Corp now owns 2,526,179 shares of the footwear maker's stock valued at $160,943,000 after purchasing an additional 1,106,499 shares during the period. PFA Pension Forsikringsaktieselskab bought a new position in NIKE during the fourth quarter valued at $43,188,000. Finally, Nicholas Company Inc. increased its position in NIKE by 33.3% in the fourth quarter. Nicholas Company Inc. now owns 123,652 shares of the footwear maker's stock worth $7,878,000 after buying an additional 30,890 shares during the last quarter. Institutional investors own 64.25% of the company's stock.

Analyst Ratings Changes

NKE has been the topic of several research reports. CICC Research lowered NIKE from an "outperform" rating to a "market perform" rating and lowered their target price for the company from $69.00 to $58.00 in a research note on Monday, April 6th. BTIG Research reiterated a "buy" rating and set a $55.00 price target (down from $75.00) on shares of NIKE in a research note on Thursday, June 25th. Telsey Advisory Group set a $47.00 price objective on NIKE and gave the stock a "market perform" rating in a report on Wednesday. Evercore set a $46.00 price objective on NIKE and gave the company an "in-line" rating in a research note on Tuesday, June 23rd. Finally, The Goldman Sachs Group dropped their price objective on shares of NIKE from $46.00 to $42.00 and set a "neutral" rating on the stock in a report on Wednesday, July 1st. Thirteen investment analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $55.42.

Insider Transactions at NIKE

In other news, EVP Philip Mccartney sold 17,398 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were 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 directly owned 53,133 shares in the company, valued at approximately $2,453,681.94. This trade represents a 24.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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. Also, Director John W. Rogers, Jr. acquired 4,000 shares of NIKE stock in a transaction that occurred on Thursday, April 9th. The shares were purchased at an average cost of $43.34 per share, with a total value of $173,360.00. Following the purchase, the director owned 41,022 shares of the company's stock, valued at $1,777,893.48. This represents a 10.80% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders bought 64,441 shares of company stock valued at $2,734,204. Company insiders own 0.80% of the company's stock.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s fiscal Q4 results beat analyst expectations, with revenue and EPS coming in ahead of forecasts, which has helped support the shares and reinforced hopes that the turnaround is starting to take hold. Stock Market Today, July 1: Nike Jumps After Quarterly Results Beat Analyst Estimates
• Positive Sentiment: Several commentaries argue the recent selloff may have gone too far, with some analysts and market watchers calling NIKE a rebound candidate after a difficult year. Prediction: Nike Stock Set for 25% Rebound After Brutal Year
• Neutral Sentiment: Reports highlight that NIKE’s digital sales fell while the company continues shifting its mix between direct-to-consumer and wholesale channels, suggesting the turnaround is still incomplete. Nike Digital Drops 12% as Brands Rebalance D2C and Wholesale
• Negative Sentiment: Barclays reportedly cut its price target on NIKE, signaling lower near-term expectations from one of the long-time bullish banks on the name. Barclays cuts Nike stock price target from $67 to $52
• Negative Sentiment: 7-Eleven filed a trademark lawsuit accusing NIKE of copying branding elements in an upcoming Air Max 95 design, adding legal overhang and potential distraction for the company. 7-Eleven sues Nike over alleged Air Max 95 design infringing brand colors

NIKE Price Performance

Shares of NYSE NKE opened at $44.12 on Monday. The stock has a market cap of $65.34 billion, a PE ratio of 21.11, a price-to-earnings-growth ratio of 2.49 and a beta of 1.12. NIKE, Inc. has a fifty-two week low of $40.00 and a fifty-two week high of $80.17. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. The stock has a fifty day moving average of $43.86 and a 200-day moving average of $53.06.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (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 company had revenue of $10.97 billion for the quarter, compared to analyst estimates of $10.85 billion. During the same period in the previous year, the company posted $0.14 EPS. The firm's revenue for the quarter was down 1.1% compared to the same quarter last year. Equities research analysts anticipate that NIKE, Inc. will post 1.8 earnings per share for the current year.

NIKE Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st were given a dividend of $0.41 per share. The ex-dividend date was Monday, June 1st. This represents a $1.64 annualized dividend and a dividend yield of 3.7%. 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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