Fifth Third Bancorp Trims Stock Holdings in NIKE, Inc. $NKE

Key Points

• Fifth Third Bancorp reduced its NIKE stake by 6.7% in the second quarter, selling 56,133 shares and retaining 778,646 shares valued at approximately $32.0 million. Institutional investors collectively own 64.25% of NIKE.
• Analysts maintain a mixed view of NIKE, with a consensus rating of “Hold” and an average price target of $53.53. Several firms recently lowered their targets, including Barclays to $52 and Guggenheim to $60.
• NIKE shares opened at $40.73, near their 12-month low, despite the company exceeding quarterly earnings and revenue estimates. NIKE also declared a quarterly dividend of $0.41, implying a 4.0% annualized yield.

Fifth Third Bancorp lowered its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 6.7% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 778,646 shares of the footwear maker's stock after selling 56,133 shares during the quarter. Fifth Third Bancorp owned about 0.05% of NIKE worth $31,963,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of the stock. Westerkirk Capital Inc. increased its holdings in NIKE by 52.4% in the 4th quarter. Westerkirk Capital Inc. now owns 131,220 shares of the footwear maker's stock valued at $8,360,000 after purchasing an additional 45,100 shares during the last quarter. OMERS ADMINISTRATION Corp raised its position in NIKE by 77.9% in 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 purchased a new stake in NIKE in the fourth quarter valued at approximately $43,188,000. Nicholas Company Inc. lifted its stake in NIKE by 33.3% during the fourth quarter. Nicholas Company Inc. now owns 123,652 shares of the footwear maker's stock worth $7,878,000 after purchasing an additional 30,890 shares in the last quarter. Finally, Stoneridge Investment Partners LLC boosted its position in shares of NIKE by 1,253.6% during the fourth quarter. Stoneridge Investment Partners LLC now owns 78,846 shares of the footwear maker's stock worth $5,023,000 after buying an additional 73,021 shares during the period. Hedge funds and other institutional investors own 64.25% of the company's stock.

Insider Buying and Selling

In other news, EVP Philip Mccartney sold 17,398 shares of the business's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $46.18, for a total transaction of $803,439.64. Following the completion of the transaction, the executive vice president directly owned 53,133 shares of the company's stock, valued at approximately $2,453,681.94. The trade was a 24.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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, insider Amy Montagne sold 4,867 shares of the company's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $42.05, for a total transaction of $204,657.35. Following the sale, the insider owned 57,436 shares in the company, valued at $2,415,183.80. The trade was a 7.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 26,142 shares of company stock valued at $1,169,380. Corporate insiders own 1.10% of the company's stock.

Analysts Set New Price Targets

NKE has been the subject of a number of research reports. Barclays dropped their price objective on NIKE from $67.00 to $52.00 and set an "overweight" rating for the company in a research note on Wednesday, July 1st. Evercore set a $46.00 target price on NIKE and gave the company an "in-line" rating in a research report on Tuesday, June 23rd. BNP Paribas Exane reiterated an "underperform" rating on shares of NIKE in a research note on Wednesday, July 22nd. Guggenheim reissued a "buy" rating and set a $60.00 price target (down from $74.00) on shares of NIKE in a research report on Wednesday, July 1st. Finally, BTIG Research reissued a "buy" rating and issued a $55.00 price objective on shares of NIKE in a research note on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eighteen have assigned a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, NIKE currently has a consensus rating of "Hold" and a consensus target price of $53.53.

NIKE Stock Down 1.2%

Shares of NYSE NKE opened at $40.73 on Friday. The stock has a market cap of $60.42 billion, a P/E ratio of 19.49, a PEG ratio of 1.81 and a beta of 1.11. The business's fifty day simple moving average is $42.90 and its 200-day simple moving average is $48.73. NIKE, Inc. has a 12-month low of $40.00 and a 12-month high of $80.17. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40.

NIKE (NYSE:NKE - Get Free Report) last released its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping the consensus estimate of $0.11 by $0.09. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The firm had revenue of $10.97 billion during the quarter, compared to analysts' expectations of $10.85 billion. During the same period in the previous year, the firm posted $0.14 EPS. NIKE's revenue for the quarter was down 1.1% on a year-over-year basis. As a group, equities analysts predict that NIKE, Inc. will post 1.74 EPS for the current fiscal year.

NIKE Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be paid a $0.41 dividend. This represents a $1.64 annualized dividend and a dividend yield of 4.0%. The ex-dividend date is Tuesday, September 1st. NIKE's dividend payout ratio (DPR) is presently 78.47%.

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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