Hsbc Holdings PLC Lowers Stake in NIKE, Inc. $NKE

Key Points

• HSBC Holdings PLC cut its NIKE stake by 5.5% in the fourth quarter, selling 146,551 shares and leaving it with 2,531,770 shares worth about $161.4 million.
• NIKE recently reported quarterly earnings of $0.35 per share, beating estimates, and revenue of $11.28 billion, slightly ahead of expectations. Analysts now see the stock with a Hold consensus and a target price of about $60.89.
• Sentiment around NIKE remains mixed: Barclays reiterated a Buy rating, while HSBC and several other firms lowered their price targets or ratings. The company also announced a $0.41 quarterly dividend, equal to a 3.6% annualized yield.

Hsbc Holdings PLC reduced its position in NIKE, Inc. (NYSE:NKE - Free Report) by 5.5% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,531,770 shares of the footwear maker's stock after selling 146,551 shares during the quarter. Hsbc Holdings PLC owned approximately 0.17% of NIKE worth $161,391,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also modified their holdings of NKE. Cornerstone Financial Management LLC purchased a new position in shares of NIKE during the 4th quarter valued at $26,000. Sankala Group LLC purchased a new stake in NIKE in the 4th quarter worth $26,000. J.Safra Asset Management Corp bought a new stake in NIKE during the fourth quarter valued at about $29,000. Kemnay Advisory Services Inc. bought a new stake in NIKE during the fourth quarter valued at about $30,000. Finally, Gordian Capital Singapore Pte Ltd bought a new stake in NIKE during the third quarter valued at about $35,000. 64.25% of the stock is currently owned by institutional investors.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Barclays reiterated a Buy rating on NIKE, which can support sentiment by signaling that analysts still see upside in the stock. Barclays Remains a Buy on Nike (NKE)
• Positive Sentiment: NIKE outperformed the broader market in the latest trading session, suggesting traders may be positioning ahead of upcoming earnings and looking for signs that the turnaround is taking hold. Nike (NKE) Outperforms Broader Market: What You Need to Know
• Positive Sentiment: Coverage highlighted stronger traction in one major market and signs that NIKE’s recovery is gaining momentum, which could improve confidence in the company’s earnings outlook. Headed Into Earnings, Nike Stock Is Trading Lower Than It Was a Decade Ago. But Is the Turnaround Finally Working?

NIKE Price Performance

NYSE:NKE opened at $45.22 on Friday. The company has a current ratio of 2.14, a quick ratio of 1.45 and a debt-to-equity ratio of 0.50. The company has a market capitalization of $66.97 billion, a P/E ratio of 29.95, a P/E/G ratio of 1.96 and a beta of 1.12. NIKE, Inc. has a 12 month low of $41.35 and a 12 month high of $80.17. The business's 50-day moving average is $44.39 and its 200 day moving average is $54.79.

NIKE (NYSE:NKE - Get Free Report) last announced its quarterly earnings results on Tuesday, March 31st. The footwear maker reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.29 by $0.06. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The company had revenue of $11.28 billion during the quarter, compared to analyst estimates of $11.23 billion. During the same period in the prior year, the company earned $0.54 earnings per share. The firm's revenue was up .1% on a year-over-year basis. On average, equities research analysts forecast that NIKE, Inc. will post 1.49 earnings per share for the current fiscal year.

NIKE Dividend Announcement

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

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on NKE shares. Sanford C. Bernstein reaffirmed a "buy" rating on shares of NIKE in a research note on Monday, May 11th. BTIG Research decreased their target price on NIKE from $90.00 to $75.00 and set a "buy" rating on the stock in a research note on Wednesday, April 1st. China Renaissance lowered their price target on NIKE from $74.60 to $50.30 and set a "hold" rating on the stock in a report on Thursday, April 2nd. DZ Bank restated a "buy" rating on shares of NIKE in a research note on Tuesday, April 21st. Finally, HSBC lowered shares of NIKE from a "buy" rating to a "hold" rating and cut their price objective for the company from $90.00 to $48.00 in a report on Monday, April 13th. Fifteen equities research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $60.89.

Insider Transactions at NIKE

In other NIKE news, Director Robert Holmes Swan purchased 11,781 shares of NIKE stock in a transaction that occurred on Tuesday, April 7th. The shares were bought at an average price of $42.44 per share, for a total transaction of $499,985.64. Following the completion of the transaction, the director owned 55,074 shares of the company's stock, valued at approximately $2,337,340.56. This trade represents a 27.21% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Philip Mccartney sold 17,398 shares of the business's stock in a transaction on 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 sale, the executive vice president owned 53,133 shares in the company, valued at $2,453,681.94. This represents a 24.67% decrease in their position. 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. Insiders bought a total of 64,441 shares of company stock valued at $2,734,204 in the last 90 days. Company insiders own 0.80% of the company's stock.

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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