GUARDCAP ASSET MANAGEMENT Ltd Has $60.45 Million Stock Position in NIKE, Inc. $NKE

Key Points

• GUARDCAP ASSET MANAGEMENT Ltd reduced its NIKE position by 16.6% in the second quarter, selling 285,411 shares and retaining 1.44 million shares worth approximately $60.45 million.
• NIKE reported quarterly EPS of $0.20, exceeding the $0.11 analyst consensus, while revenue of $10.97 billion was slightly above estimates but declined 1.1% year over year.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $53.53; NIKE also declared a quarterly dividend of $0.41 per share, representing a 4.0% yield.

GUARDCAP ASSET MANAGEMENT Ltd lowered its holdings in NIKE, Inc. (NYSE:NKE - Free Report) by 16.6% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,438,583 shares of the footwear maker's stock after selling 285,411 shares during the period. NIKE comprises about 4.3% of GUARDCAP ASSET MANAGEMENT Ltd's portfolio, making the stock its 12th largest holding. GUARDCAP ASSET MANAGEMENT Ltd owned 0.10% of NIKE worth $60,450,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in NKE. Vanguard Group Inc. lifted its stake in NIKE by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 116,993,541 shares of the footwear maker's stock valued at $7,453,658,000 after acquiring an additional 1,702,342 shares during the last quarter. State Street Corp boosted its holdings in shares of NIKE by 2.2% during the fourth quarter. State Street Corp now owns 59,315,606 shares of the footwear maker's stock worth $3,802,807,000 after acquiring an additional 1,275,494 shares during the period. Capital World Investors boosted its stake in NIKE by 16.2% in the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock valued at $3,126,246,000 after purchasing an additional 6,830,938 shares during the period. J. Stern & Co. LLP grew its stake in shares of NIKE by 49,010.4% in the fourth quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker's stock valued at $3,061,555,000 after acquiring an additional 47,956,692 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in shares of NIKE by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker's stock worth $1,677,251,000 after purchasing an additional 233,925 shares in the last quarter. Institutional investors and hedge funds own 64.25% of the company's stock.

NIKE Stock Performance

NKE opened at $40.73 on Friday. NIKE, Inc. has a 1-year low of $40.00 and a 1-year high of $80.17. The company has a market cap of $60.42 billion, a price-to-earnings ratio of 19.49, a PEG ratio of 1.83 and a beta of 1.11. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40. The company's fifty day moving average price is $42.90 and its two-hundred day moving average price is $48.73.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings results 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. The business had revenue of $10.97 billion during the quarter, compared to the consensus estimate of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The company's quarterly revenue was down 1.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.14 EPS. On average, analysts expect that NIKE, Inc. will post 1.74 EPS for the current fiscal year.

NIKE Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be issued a dividend of $0.41 per share. The ex-dividend date is Tuesday, September 1st. This represents a $1.64 annualized dividend and a yield of 4.0%. NIKE's payout ratio is 78.47%.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the company. Guggenheim reissued a "buy" rating and set a $60.00 target price (down from $74.00) on shares of NIKE in a report on Wednesday, July 1st. Wall Street Zen upgraded shares of NIKE from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. The Goldman Sachs Group lowered their price objective on NIKE from $46.00 to $42.00 and set a "neutral" rating for the company in a research note on Wednesday, July 1st. Bank of America lowered their target price on NIKE from $55.00 to $47.00 and set a "neutral" rating for the company in a research report on Wednesday, July 1st. Finally, Zacks Research lowered shares of NIKE from a "hold" rating to a "strong sell" rating in a report on Monday, June 1st. One equities research 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 given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $53.53.

Insiders Place Their Bets

In related news, CFO Matthew Friend sold 2,463 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total transaction of $102,460.80. Following the completion of the transaction, the chief financial officer 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 transaction was disclosed in a filing 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. Also, EVP Philip Mccartney sold 17,398 shares of the stock in a transaction that occurred 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 transaction, the executive vice president directly owned 53,133 shares of the company's stock, valued at $2,453,681.94. This represents a 24.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold 26,142 shares of company stock worth $1,169,380 over the last 90 days. 1.10% of the stock is currently owned by corporate insiders.

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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