Murphy Pohlad Asset Management LLC Buys Shares of 47,635 NIKE, Inc. $NKE

Key Points

• Murphy Pohlad Asset Management initiated a NIKE position by purchasing 47,635 shares valued at approximately $1.96 million. Institutional investors and hedge funds collectively own 64.25% of NKE.
• NIKE shares traded near a 12-month low at $38.04, amid declining revenue, weakness in sportswear demand, inventory challenges and pressure in China and EMEA. The stock is leaving the S&P 100 on September 21, potentially adding index-related selling pressure.
• Analysts maintain a consensus “Hold” rating with an average price target of $52.29, while potential recovery in China, new products and insider purchases offer longer-term optimism. NIKE also declared a quarterly dividend of $0.41, implying a 4.3% annual yield.

Murphy Pohlad Asset Management LLC bought a new stake in NIKE, Inc. (NYSE:NKE - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund bought 47,635 shares of the footwear maker's stock, valued at approximately $1,955,000.

A number of other large investors have also made changes to their positions in NKE. Scarborough Advisors LLC acquired a new stake in NIKE during the 1st quarter worth $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of NIKE in the fourth quarter valued at approximately $26,000. Sankala Group LLC acquired a new stake in shares of NIKE in the fourth quarter valued at approximately $26,000. Meeder Asset Management Inc. increased its holdings in shares of NIKE by 108.4% in the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock valued at $29,000 after purchasing an additional 285 shares during the last quarter. Finally, J.Safra Asset Management Corp purchased a new stake in shares of NIKE in the fourth quarter valued at about $29,000. 64.25% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Some analysts see significant turnaround potential. One bullish Wall Street view suggests the stock could nearly double from current levels, while the median analyst price target is approximately $47.50. Nike Is In Free Fall: This Wall Street Ratings Agency Says It’s Doubling Soon
• Positive Sentiment: Early signs of improvement in China’s running, football and premium-retail businesses, along with continued running-category growth and new product launches, offer a potential longer-term recovery path. NIKE's China Business: Recovery Story or Ongoing Challenge?
• Positive Sentiment: Recent insider activity includes purchases by CEO Elliott Hill and other executives, which may signal confidence that the depressed valuation offers long-term value. Dividend-focused investors may also view the stock’s income stream as a source of support.
• Neutral Sentiment: Shareholders rejected a Norway-backed proposal seeking greater disclosure of how NIKE plans to meet its emissions-reduction targets. The vote removes an immediate governance request but could keep sustainability scrutiny on the company. Nike shareholders reject climate proposal backed by Norway wealth fund
• Negative Sentiment: NIKE will leave the S&P 100 on September 21 after nearly 18 years. The change underscores the company’s sharply reduced market value and may create additional selling pressure from index-related funds. Nike to lose S&P 100 place as stock sinks to 12-year low
• Negative Sentiment: Sportswear weakness, inventory cleanup and persistent pressure in China and EMEA continue to weigh on sales. Recent quarterly revenue declined year over year, while elevated prices and competition from brands and retailers such as Lululemon and Dick’s are hurting consumer momentum. NIKE Near 52-Week Low: Should Investors Buy or Stay Cautious?
• Negative Sentiment: Political and cultural criticism of NIKE’s policies, including a campaign concerning gender-transition surgeries for minors, creates potential reputational and demand risks, although the direct financial impact is uncertain. Former college soccer player takes on Nike over gender-transition surgeries for minors

Insider Transactions at NIKE

In related news, COO Venkatesh Alagirisamy sold 890 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $37,024.00. Following the completion of the transaction, the chief operating officer directly owned 74,820 shares of the company's stock, valued at $3,112,512. This represents a 1.18% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the firm's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the transaction, the insider directly owned 57,436 shares of the company's stock, valued at $2,415,183.80. This represents a 7.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 26,142 shares of company stock worth $1,169,380. 1.10% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on NKE shares. Royal Bank Of Canada restated a "sector perform" rating and set a $45.00 price target on shares of NIKE in a report on Tuesday, August 25th. Telsey Advisory Group set a $47.00 price objective on shares of NIKE and gave the stock a "market perform" rating in a report on Wednesday, July 1st. Wells Fargo & Company lowered their price objective on shares of NIKE from $45.00 to $40.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 1st. Jefferies Financial Group reissued a "buy" rating on shares of NIKE in a research report on Tuesday, August 25th. Finally, Bank of America decreased their price target on NIKE from $55.00 to $47.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty have given a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, NIKE currently has a consensus rating of "Hold" and an average target price of $52.29.

NIKE Stock Performance

NIKE stock traded down $0.36 during midday trading on Tuesday, hitting $38.04. 31,589,068 shares of the company's stock were exchanged, compared to its average volume of 21,833,607. NIKE, Inc. has a 12-month low of $37.90 and a 12-month high of $76.97. The firm's 50 day simple moving average is $41.46 and its 200 day simple moving average is $45.78. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. The stock has a market cap of $56.43 billion, a price-to-earnings ratio of 18.20, a price-to-earnings-growth ratio of 1.88 and a beta of 1.10.

NIKE (NYSE:NKE - Get Free Report) last posted its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. The firm had revenue of $10.97 billion for 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 revenue for the quarter was down 1.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.14 earnings per share. Equities research analysts predict that NIKE, Inc. will post 1.74 EPS for the current year.

NIKE Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be issued a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 4.3%. The ex-dividend date of this dividend is Tuesday, September 1st. NIKE's payout ratio is currently 78.47%.

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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