National Pension Service Increases Stock Position in NIKE, Inc. $NKE

Key Points

• National Pension Service increased its NIKE stake by 8.7% in the second quarter, adding 247,230 shares to own 3.09 million shares valued at approximately $126.8 million. Institutional investors collectively hold 64.25% of NIKE.
• NIKE shares opened at $36.57, near their 52-week low of $36.55, after declining 2.1%. The company’s latest quarterly results beat estimates, but revenue fell 1.1% year over year and analysts cite ongoing competitive, consumer-demand and operational challenges.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $50.12; BMO issued an “Underperform” rating with a $30 target. NIKE also declared a quarterly dividend of $0.41 per share, representing a 4.5% annualized yield.

National Pension Service raised its stake in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 8.7% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,088,640 shares of the footwear maker's stock after purchasing an additional 247,230 shares during the period. National Pension Service owned 0.21% of NIKE worth $126,789,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in NKE. Brighton Jones LLC grew its holdings in NIKE by 388.5% during the 4th quarter. Brighton Jones LLC now owns 202,411 shares of the footwear maker's stock valued at $15,316,000 after buying an additional 160,980 shares in the last quarter. Caxton Associates LLP purchased a new stake in shares of NIKE during the 1st quarter worth approximately $311,000. United Bank raised its holdings in shares of NIKE by 11.3% during the 2nd quarter. United Bank now owns 17,067 shares of the footwear maker's stock worth $1,212,000 after acquiring an additional 1,736 shares in the last quarter. NewEdge Advisors LLC boosted its position in shares of NIKE by 0.3% during the 2nd quarter. NewEdge Advisors LLC now owns 64,161 shares of the footwear maker's stock valued at $4,558,000 after acquiring an additional 197 shares during the last quarter. Finally, CIBC Asset Management Inc boosted its position in shares of NIKE by 6.5% during the 2nd quarter. CIBC Asset Management Inc now owns 191,268 shares of the footwear maker's stock valued at $13,588,000 after acquiring an additional 11,646 shares during the last quarter. Hedge funds and other institutional investors own 64.25% of the company's stock.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Neutral Sentiment: Shareholders approved an expanded employee stock purchase plan adopted by NIKE’s board in July. The plan could support employee retention, although the potential for additional share issuance may limit its benefit to existing investors. Nike Shareholders Approve Expanded Employee Stock Purchase Plan
• Neutral Sentiment: Some commentary argues that NIKE’s underlying business is not fundamentally broken and that its depressed valuation and dividend yield could appeal to long-term investors, though a turnaround remains necessary. Nike: The Sentiment Is Bleak, But The Underlying Business Is Not Broken
• Negative Sentiment: Morgan Stanley warned that the pain may not be over, citing persistent operating weakness, disappointing share performance and NIKE’s imminent removal from the S&P 100. Morgan Stanley Says the Pain May Not Be Over Yet
• Negative Sentiment: BMO initiated coverage with an Underperform rating, pointing to challenges facing NIKE and the broader athletic-apparel market. The new bearish call adds to pressure on the stock. BMO Says Sell Nike Stock
• Negative Sentiment: NIKE is set to lose its S&P 100 membership after nearly 18 years, a high-profile consequence of its severe decline that could reduce index-related demand and reinforce negative sentiment. Nike Loses Its S&P 100 Membership
• Negative Sentiment: Analysts continue to cite shifting consumer preferences, intense competition and NIKE’s broad product and market exposure as structural challenges, leaving investors concerned that a recovery could take time. Shifting Consumer Preferences Continue to Impact Nike and Lululemon

NIKE Trading Down 2.1%

Shares of NKE opened at $36.57 on Friday. NIKE, Inc. has a 1-year low of $36.55 and a 1-year high of $76.97. The company has a 50-day moving average of $41.19 and a 200 day moving average of $45.38. The firm has a market capitalization of $54.25 billion, a price-to-earnings ratio of 17.50, a PEG ratio of 1.83 and a beta of 1.10. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping the consensus estimate of $0.11 by $0.09. The company 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%.NIKE's quarterly revenue was down 1.1% on a year-over-year basis. During the same period last year, the business posted $0.14 EPS. On average, research analysts expect that NIKE, Inc. will post 1.74 EPS for the current year.

NIKE Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 4.5%. The ex-dividend date is Tuesday, September 1st. NIKE's dividend payout ratio is presently 78.47%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Wall Street Zen upgraded shares of NIKE from a "sell" rating to a "hold" rating in a research report on Saturday, May 16th. Citigroup reiterated a "neutral" rating on shares of NIKE in a research report on Wednesday, July 22nd. BMO Capital Markets initiated coverage on shares of NIKE in a report on Tuesday. They issued an "underperform" rating and a $30.00 target price on the stock. Robert W. Baird restated an "outperform" rating and set a $70.00 target price on shares of NIKE in a research report on Wednesday, July 1st. Finally, Piper Sandler decreased their target price on shares of NIKE from $50.00 to $45.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty have given a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat.com, NIKE presently has a consensus rating of "Hold" and a consensus price target of $50.12.

Insider Buying and Selling at NIKE

In other news, CFO Matthew Friend sold 2,463 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $102,460.80. Following the completion of the sale, the chief financial officer owned 82,165 shares of the company's stock, valued at approximately $3,418,064. This represents a 2.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Venkatesh Alagirisamy sold 3,671 shares of the stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total transaction of $137,992.89. Following the transaction, the chief operating officer owned 104,862 shares in the company, valued at approximately $3,941,762.58. This represents a 3.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 14,974 shares of company stock worth $600,126. Company insiders own 1.10% of the company's stock.

NIKE Company Profile

NIKE, Inc is a global athletic footwear, apparel and equipment company headquartered near Beaverton, Oregon. The company designs, develops and markets products under the NIKE, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE's offerings include athletic and casual footwear, sportswear, apparel, accessories and athletic equipment. The company distributes its products through company-owned retail stores, digital platforms, wholesale partners and independent distributors.

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