Generation Investment Management LLP Makes New Investment in NIKE, Inc. $NKE

Key Points

• Generation Investment Management LLP acquired 3,398,991 shares of NIKE in Q1 2023, worth approximately $215.8 million, making up about 1.3% of its portfolio.
• NIKE's stock performance shows a one-year range between $52.28 and $90.62, with a current market cap of $114.22 billion and a PE ratio of 35.81.
• The company recently announced a quarterly dividend of $0.40, representing an annual yield of 2.1%, with a payout ratio of 74.07%.

Generation Investment Management LLP purchased a new position in shares of NIKE, Inc. (NYSE:NKE - Free Report) in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 3,398,991 shares of the footwear maker's stock, valued at approximately $215,768,000. NIKE accounts for about 1.3% of Generation Investment Management LLP's portfolio, making the stock its 24th largest position. Generation Investment Management LLP owned approximately 0.23% of NIKE as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently modified their holdings of NKE. Federation des caisses Desjardins du Quebec grew its holdings in shares of NIKE by 10.2% during the 1st quarter. Federation des caisses Desjardins du Quebec now owns 186,560 shares of the footwear maker's stock valued at $11,844,000 after purchasing an additional 17,232 shares during the last quarter. Chiron Capital Management LLC grew its stake in shares of NIKE by 71.4% during the first quarter. Chiron Capital Management LLC now owns 41,523 shares of the footwear maker's stock worth $2,636,000 after buying an additional 17,301 shares during the last quarter. EP Wealth Advisors LLC increased its holdings in shares of NIKE by 7.6% during the first quarter. EP Wealth Advisors LLC now owns 438,092 shares of the footwear maker's stock worth $27,810,000 after buying an additional 31,080 shares in the last quarter. Ashton Thomas Securities LLC lifted its stake in shares of NIKE by 7.7% in the 1st quarter. Ashton Thomas Securities LLC now owns 5,525 shares of the footwear maker's stock valued at $355,000 after acquiring an additional 394 shares during the last quarter. Finally, First Manhattan CO. LLC. grew its position in NIKE by 22.7% during the 1st quarter. First Manhattan CO. LLC. now owns 849,446 shares of the footwear maker's stock worth $54,228,000 after acquiring an additional 156,895 shares during the last quarter. Institutional investors own 64.25% of the company's stock.

NIKE Stock Performance

Shares of NKE opened at $77.34 on Tuesday. The stock has a 50-day moving average of $74.65 and a 200-day moving average of $67.89. NIKE, Inc. has a one year low of $52.28 and a one year high of $90.62. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.21 and a quick ratio of 1.50. The company has a market cap of $114.22 billion, a PE ratio of 35.81, a P/E/G ratio of 2.81 and a beta of 1.24.

NIKE (NYSE:NKE - Get Free Report) last posted its quarterly earnings results on Thursday, June 26th. The footwear maker reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.12 by $0.02. NIKE had a net margin of 6.95% and a return on equity of 23.33%. The business had revenue of $11.10 billion during the quarter, compared to the consensus estimate of $10.69 billion. During the same quarter last year, the firm posted $0.99 EPS. NIKE's revenue was down 11.9% compared to the same quarter last year. On average, equities research analysts predict that NIKE, Inc. will post 2.05 EPS for the current fiscal year.

NIKE Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a $0.40 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $1.60 annualized dividend and a dividend yield of 2.1%. NIKE's dividend payout ratio is 74.07%.

Insider Buying and Selling at NIKE

In related news, Chairman Mark G. Parker sold 110,000 shares of NIKE stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $72.29, for a total transaction of $7,951,900.00. Following the transaction, the chairman owned 842,361 shares of the company's stock, valued at $60,894,276.69. The trade was a 11.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.80% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

NKE has been the topic of several research reports. Deutsche Bank Aktiengesellschaft reduced their price target on NIKE from $77.00 to $71.00 and set a "buy" rating on the stock in a report on Friday, June 20th. JPMorgan Chase & Co. raised shares of NIKE from a "neutral" rating to an "overweight" rating and raised their price target for the company from $64.00 to $93.00 in a research note on Monday, July 28th. Wells Fargo & Company upped their price target on NIKE from $55.00 to $60.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 14th. Citigroup lifted their price objective on NIKE from $57.00 to $68.00 and gave the stock a "neutral" rating in a research note on Friday, June 27th. Finally, Piper Sandler increased their target price on shares of NIKE from $70.00 to $80.00 and gave the company an "overweight" rating in a research report on Friday, June 27th. Three analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and thirteen have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $78.22.

NIKE Company Profile

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.

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