Equity Investment Corp Makes New $99.53 Million Investment in NIKE, Inc. $NKE

Key Points

• Equity Investment Corp acquired 2.42 million NIKE shares worth approximately $99.53 million during the second quarter, giving it a 0.16% stake. Institutional investors collectively own 64.25% of NIKE.
• NIKE’s latest quarterly results exceeded expectations, with EPS of $0.20 versus the $0.11 consensus and revenue of $10.97 billion, although revenue declined 1.1% year over year.
• The company declared a quarterly dividend of $0.41 per share, representing a 4.1% annualized yield. Analysts remain cautious, with a consensus “Hold” rating and a target price of $53.53 amid concerns about weak digital demand, China, and the prolonged turnaround.

Equity Investment Corp bought a new position in NIKE, Inc. (NYSE:NKE - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 2,424,640 shares of the footwear maker's stock, valued at approximately $99,531,000. Equity Investment Corp owned approximately 0.16% of NIKE as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors have also recently made changes to their positions in the company. Brighton Jones LLC raised its stake in shares of NIKE by 388.5% in the fourth quarter. Brighton Jones LLC now owns 202,411 shares of the footwear maker's stock worth $15,316,000 after purchasing an additional 160,980 shares during the last quarter. Caxton Associates LLP purchased a new stake in shares of NIKE during the 1st quarter valued at about $311,000. United Bank boosted its holdings in shares of NIKE by 11.3% during the 2nd quarter. United Bank now owns 17,067 shares of the footwear maker's stock valued at $1,212,000 after acquiring an additional 1,736 shares during the last quarter. NewEdge Advisors LLC grew its stake in shares of NIKE by 0.3% in the second quarter. NewEdge Advisors LLC now owns 64,161 shares of the footwear maker's stock worth $4,558,000 after acquiring an additional 197 shares during the period. Finally, CIBC Asset Management Inc grew its stake in shares of NIKE by 6.5% in the second quarter. CIBC Asset Management Inc now owns 191,268 shares of the footwear maker's stock worth $13,588,000 after acquiring an additional 11,646 shares during the period. Hedge funds and other institutional investors own 64.25% of the company's stock.

NIKE Stock Up 2.5%

NKE opened at $40.06 on Wednesday. The stock has a market cap of $59.43 billion, a price-to-earnings ratio of 19.17, a price-to-earnings-growth ratio of 1.81 and a beta of 1.11. 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 firm's fifty day moving average is $42.73 and its 200 day moving average is $48.29. NIKE, Inc. has a fifty-two week low of $38.86 and a fifty-two week high of $80.17.

NIKE (NYSE:NKE - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.11 by $0.09. The business had revenue of $10.97 billion during the quarter, compared to analyst estimates of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.NIKE's revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.14 EPS. On average, sell-side analysts forecast that NIKE, Inc. will post 1.74 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be given a dividend of $0.41 per share. The ex-dividend date is Tuesday, September 1st. This represents a $1.64 annualized dividend and a dividend yield of 4.1%. NIKE's dividend payout ratio (DPR) is currently 78.47%.

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. JPMorgan Chase & Co. restated an "underweight" rating and set a $40.00 price objective (down from $47.00) on shares of NIKE in a research report on Tuesday, August 4th. Weiss Ratings upgraded shares of NIKE from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, July 17th. Needham & Company LLC reissued a "hold" rating on shares of NIKE in a report on Thursday, June 4th. Barclays dropped their price target on NIKE from $67.00 to $52.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 1st. Finally, Jefferies Financial Group cut their price objective on NIKE from $90.00 to $75.00 and set a "buy" rating for the company in a report on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eighteen have issued a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat, NIKE presently has an average rating of "Hold" and a consensus target price of $53.53.

Trending Headlines about NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Recent results showed improving wholesale demand, particularly in North America, alongside a sharp improvement in gross margin and better-than-expected earnings. Management’s focus on product innovation and marketplace execution is giving some investors hope that the reset under CEO Elliott Hill can eventually restore growth. Why Nike Stock Is Up Today
• Positive Sentiment: Valuation and income appeal are attracting contrarian investors. The stock offers a dividend yield near 4%, and NIKE could potentially extend its dividend-growth streak for a 25th consecutive year in 2026. Several company insiders have also purchased shares recently. Nike Stock Dividend Outlook
• Neutral Sentiment: Analyst targets imply substantial potential upside, with reports citing an average target around $50.66 and a median six-month target of $47.50. However, targets vary widely, underscoring the uncertainty surrounding the turnaround. Nike Price Target Outlook
• Negative Sentiment: Investors remain concerned that the turnaround is taking too long. NIKE has lost roughly 78% from its 2021 peak and more than $200 billion in market value, while weak direct-to-consumer demand, international pressure and a reported decline in China sales continue to weigh on sentiment. Nike Stock Hits Lowest Level Since 2014
• Negative Sentiment: A recent analyst downgrade and weak digital sales have reinforced fears that product and distribution problems will persist. Technical analysts also describe the stock’s trend as severely damaged, limiting confidence that the current rebound represents a durable bottom. What Is Dragging Nike Down?

Insiders Place Their Bets

In related news, EVP Philip Mccartney sold 17,398 shares of NIKE stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $46.18, for a total transaction of $803,439.64. Following the sale, the executive vice president owned 53,133 shares of the company's stock, valued at approximately $2,453,681.94. This trade represents a 24.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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, CFO Matthew Friend sold 2,463 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the completion of the transaction, the chief financial officer directly owned 82,165 shares in the company, valued at approximately $3,418,064. This represents a 2.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 26,142 shares of company stock worth $1,169,380. Company insiders own 1.10% of the company's stock.

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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