Horizon Investments LLC Decreases Position in NIKE, Inc. $NKE

Key Points

• Horizon Investments cut its NIKE stake by 39.5% in the fourth quarter to 39,979 shares (worth $2.55M), even as several large institutions substantially raised or initiated positions in the stock.
• NIKE beat the latest quarterly estimates with $0.35 EPS (vs. $0.29 expected) and $11.28B in revenue, and announced a $0.41 quarterly dividend (3.8% yield) despite a high dividend payout ratio of 108.61%.
• Insiders recently bought shares (e.g., John W. Rogers Jr. and Timothy D. Cook), while analysts remain split—the consensus rating is Hold with an average price target of $62.34.

Horizon Investments LLC trimmed its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 39.5% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 39,979 shares of the footwear maker's stock after selling 26,108 shares during the period. Horizon Investments LLC's holdings in NIKE were worth $2,547,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of NKE. Harris Associates L P purchased a new position in NIKE during the second quarter worth $621,525,000. Jennison Associates LLC raised its stake in shares of NIKE by 42.3% in the third quarter. Jennison Associates LLC now owns 11,838,528 shares of the footwear maker's stock valued at $825,501,000 after acquiring an additional 3,518,666 shares during the period. Ameriprise Financial Inc. raised its stake in shares of NIKE by 129.4% in the second quarter. Ameriprise Financial Inc. now owns 5,849,636 shares of the footwear maker's stock valued at $411,951,000 after acquiring an additional 3,299,155 shares during the period. Flossbach Von Storch SE lifted its holdings in shares of NIKE by 29.3% in the 4th quarter. Flossbach Von Storch SE now owns 12,753,317 shares of the footwear maker's stock worth $812,514,000 after acquiring an additional 2,886,856 shares during the last quarter. Finally, Sustainable Growth Advisers LP bought a new stake in shares of NIKE in the 3rd quarter worth about $190,182,000. Hedge funds and other institutional investors own 64.25% of the company's stock.

NIKE Price Performance

NIKE stock opened at $43.17 on Tuesday. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.14 and a quick ratio of 1.45. The stock has a market cap of $63.93 billion, a price-to-earnings ratio of 28.59, a price-to-earnings-growth ratio of 2.36 and a beta of 1.12. The firm has a 50-day moving average of $51.39 and a two-hundred day moving average of $59.65. NIKE, Inc. has a 1 year low of $42.09 and a 1 year 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. NIKE had a net margin of 4.84% and a return on equity of 16.41%. The business had revenue of $11.28 billion for the quarter, compared to analyst estimates of $11.23 billion. During the same period last year, the company posted $0.54 earnings per share. The company's quarterly revenue was up .1% compared to the same quarter last year. On average, research analysts forecast that NIKE, Inc. will post 1.51 earnings per share for the current year.

NIKE Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be issued a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 3.8%. The ex-dividend date is Monday, June 1st. NIKE's dividend payout ratio (DPR) is presently 108.61%.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on NKE shares. Needham & Company LLC downgraded shares of NIKE from a "buy" rating to a "hold" rating in a report on Thursday, January 8th. Williams Trading dropped their target price on NIKE from $80.00 to $57.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Bank of America reaffirmed a "neutral" rating and set a $55.00 target price (down from $73.00) on shares of NIKE in a research note on Wednesday, April 1st. Jefferies Financial Group reduced their price target on NIKE from $110.00 to $90.00 and set a "buy" rating on the stock in a report on Wednesday, April 1st. Finally, Wells Fargo & Company decreased their price target on NIKE from $65.00 to $55.00 and set an "overweight" rating for the company in a research note on Wednesday, April 1st. Seventeen investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $62.34.

Insider Transactions at NIKE

In other news, Director John W. Rogers, Jr. purchased 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 transaction, the director owned 41,022 shares of the company's stock, valued at $1,777,893.48. This represents a 10.80% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Timothy D. Cook purchased 25,000 shares of the business's stock in a transaction dated Friday, April 10th. The shares were purchased at an average price of $42.43 per share, for a total transaction of $1,060,750.00. Following the purchase, the director owned 130,480 shares of the company's stock, valued at approximately $5,536,266.40. This trade represents a 23.70% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders acquired 64,441 shares of company stock valued at $2,734,204. Company insiders own 0.80% of the company's stock.

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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