Fundsmith Investment Services LTD. Decreases Position in NIKE, Inc. $NKE

Key Points

• Fundsmith Investment Services trimmed its NIKE stake by 3.8% in Q4, selling 88,151 shares and leaving it with 2.23 million shares valued at about $141.8 million.
• NIKE reported quarterly earnings of $0.35 per share, beating estimates, on revenue of $11.28 billion; analysts now expect full-year EPS of about $1.49.
• Wall Street sentiment remains cautious, with the stock carrying an average “Hold” rating and a consensus price target of $60.89, while NIKE also declared a quarterly dividend of $0.41 per share.

Fundsmith Investment Services LTD. decreased its holdings in NIKE, Inc. (NYSE:NKE - Free Report) by 3.8% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,226,357 shares of the footwear maker's stock after selling 88,151 shares during the quarter. NIKE comprises about 2.6% of Fundsmith Investment Services LTD.'s portfolio, making the stock its 17th biggest position. Fundsmith Investment Services LTD. owned approximately 0.15% of NIKE worth $141,841,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Cornerstone Financial Management LLC acquired a new stake in NIKE in the fourth quarter worth about $26,000. J.Safra Asset Management Corp acquired a new stake in NIKE in the 4th quarter worth approximately $29,000. Litman Gregory Wealth Management LLC purchased a new stake in NIKE during the 4th quarter worth approximately $32,000. Gordian Capital Singapore Pte Ltd purchased a new stake in NIKE during the 3rd quarter worth approximately $35,000. Finally, Accredited Wealth Management LLC increased its stake in NIKE by 268.6% during the 3rd quarter. Accredited Wealth Management LLC now owns 516 shares of the footwear maker's stock valued at $36,000 after purchasing an additional 376 shares in the last quarter. 64.25% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at NIKE

In other news, Director John W. Rogers, Jr. acquired 4,000 shares of the company's stock in a transaction dated Thursday, April 9th. The shares were acquired at an average price of $43.34 per share, with a total value of $173,360.00. Following the purchase, the director directly owned 41,022 shares of the company's stock, valued at $1,777,893.48. This trade represents a 10.80% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Philip Mccartney sold 17,398 shares of the business's stock in a transaction on Friday, June 12th. The shares were 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 owned 53,133 shares of the company's stock, valued at approximately $2,453,681.94. This represents a 24.67% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have acquired 64,441 shares of company stock worth $2,734,204. 0.80% of the stock is currently owned by insiders.

NIKE Stock Performance

NYSE NKE opened at $45.06 on Wednesday. The firm has a market capitalization of $66.72 billion, a P/E ratio of 29.84, a PEG ratio of 1.96 and a beta of 1.12. The stock has a 50-day simple moving average of $44.30 and a two-hundred day simple moving average of $55.14. 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 $41.35 and a fifty-two week high of $80.17.

NIKE (NYSE:NKE - Get Free Report) last issued its earnings results on Tuesday, March 31st. The footwear maker reported $0.35 EPS 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 the consensus estimate of $11.23 billion. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The company's revenue was up .1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.54 earnings per share. On average, equities analysts forecast that NIKE, Inc. will post 1.49 earnings per share for the current year.

NIKE Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be given a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 3.6%. The ex-dividend date is Monday, June 1st. NIKE's dividend payout ratio is currently 108.61%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on NKE shares. Barclays lowered their price objective on shares of NIKE from $73.00 to $67.00 and set an "overweight" rating for the company in a research note on Wednesday, April 1st. DZ Bank reiterated a "buy" rating on shares of NIKE in a research note on Tuesday, April 21st. HSBC cut NIKE from a "buy" rating to a "hold" rating and reduced their price objective for the stock from $90.00 to $48.00 in a research note on Monday, April 13th. Piper Sandler reiterated a "neutral" rating and issued a $50.00 target price (down from $60.00) on shares of NIKE in a research report on Friday, April 10th. Finally, Royal Bank Of Canada downgraded shares of NIKE from an "outperform" rating to a "sector perform" rating and cut their price target for the stock from $70.00 to $50.00 in a report on Wednesday, June 10th. Fifteen investment analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $60.89.

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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