Nicholas Company Inc. Buys 30,890 Shares of NIKE, Inc. $NKE

Key Points

• Nicholas Company Inc. increased its NIKE stake by 33.3% in the fourth quarter, buying 30,890 additional shares and bringing its holdings to 123,652 shares valued at about $7.88 million.
• NIKE is facing a more cautious market backdrop, with Wells Fargo downgrading the stock to Equal Weight and cutting its price target to $45, while Reuters noted that short bets against the company have risen.
• The company is also dealing with weak earnings pressure and restructuring costs as it pushes ahead with nearly 1,400 job cuts, even as it maintains a quarterly dividend of $0.41 per share.

Nicholas Company Inc. grew its stake in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 33.3% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 123,652 shares of the footwear maker's stock after buying an additional 30,890 shares during the period. Nicholas Company Inc.'s holdings in NIKE were worth $7,878,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Brighton Jones LLC increased its position in NIKE by 388.5% in the fourth quarter. Brighton Jones LLC now owns 202,411 shares of the footwear maker's stock worth $15,316,000 after purchasing an additional 160,980 shares during the last quarter. Caxton Associates LLP bought a new stake in NIKE in the first quarter worth $311,000. United Bank increased its position in NIKE by 11.3% in the second quarter. United Bank now owns 17,067 shares of the footwear maker's stock worth $1,212,000 after purchasing an additional 1,736 shares during the last quarter. NewEdge Advisors LLC increased its position in NIKE by 0.3% in the second quarter. NewEdge Advisors LLC now owns 64,161 shares of the footwear maker's stock worth $4,558,000 after purchasing an additional 197 shares during the last quarter. Finally, CIBC Asset Management Inc increased its position in NIKE by 6.5% in the second quarter. CIBC Asset Management Inc now owns 191,268 shares of the footwear maker's stock worth $13,588,000 after purchasing an additional 11,646 shares during the last quarter. Institutional investors own 64.25% of the company's stock.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Negative Sentiment: Wells Fargo downgraded NIKE to Equal Weight from Overweight and cut its price target to $45 from $55, saying a GLP-1-driven shift in consumer behavior could become a new headwind for athletic wear demand. Article Title
• Negative Sentiment: Reuters reported that bets against NIKE have surged, adding to pressure on CEO Elliott Hill to stabilize performance and restore investor confidence. Article Title
• Negative Sentiment: NIKE is also facing ongoing scrutiny over weak earnings, revenue pressure, and restructuring costs as it moves ahead with nearly 1,400 job cuts tied to its “Win Now” overhaul. Article Title
• Neutral Sentiment: NIKE’s board declared a quarterly dividend of $0.41 per share, which supports the company’s shareholder-return story but does not offset the broader concerns around growth and execution. Article Title
• Neutral Sentiment: Several articles note increased investor attention and valuation-reset chatter, but these appear to be more reflective of market interest than a clear fundamental catalyst. Article Title

NIKE Trading Down 0.1%

NKE stock opened at $44.10 on Monday. The company has a quick ratio of 1.45, a current ratio of 2.14 and a debt-to-equity ratio of 0.50. NIKE, Inc. has a twelve month low of $42.09 and a twelve month high of $80.17. The stock has a market capitalization of $65.31 billion, a price-to-earnings ratio of 29.21, a price-to-earnings-growth ratio of 2.34 and a beta of 1.12. The firm's fifty day simple moving average is $50.16 and its two-hundred day simple moving average is $59.14.

NIKE (NYSE:NKE - Get Free Report) last posted its quarterly earnings data on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share for the quarter, beating 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 analysts' expectations of $11.23 billion. During the same quarter in the previous year, the business posted $0.54 earnings per share. The business's revenue was up .1% compared to the same quarter last year. As a group, analysts anticipate that NIKE, Inc. will post 1.51 earnings per share for the current year.

NIKE Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be issued a $0.41 dividend. The ex-dividend date is Monday, June 1st. This represents a $1.64 dividend on an annualized basis and a dividend yield of 3.7%. NIKE's dividend payout ratio is presently 108.61%.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on NKE. Piper Sandler restated a "neutral" rating and issued a $50.00 price target (down from $60.00) on shares of NIKE in a research report on Friday, April 10th. KeyCorp reduced their price target on shares of NIKE from $90.00 to $75.00 and set an "overweight" rating on the stock in a research report on Thursday, January 22nd. Robert W. Baird reduced their price target on shares of NIKE from $85.00 to $70.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 1st. Williams Trading reduced their price target on shares of NIKE from $80.00 to $57.00 and set a "buy" rating on the stock in a research report on Wednesday, April 1st. Finally, DA Davidson cut shares of NIKE from a "buy" rating to a "neutral" rating and reduced their price target for the stock from $72.00 to $46.00 in a research report on Thursday, April 2nd. Sixteen research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, NIKE has a consensus rating of "Hold" and a consensus target price of $62.04.

Insider Activity at NIKE

In related news, CEO Elliott Hill purchased 23,660 shares of the business's stock in a transaction dated Monday, April 13th. The shares were purchased at an average cost of $42.27 per share, for a total transaction of $1,000,108.20. Following the completion of the acquisition, the chief executive officer owned 265,247 shares in the company, valued at approximately $11,211,990.69. This trade represents a 9.79% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Robert Holmes Swan purchased 11,781 shares of the business's stock in a transaction dated Tuesday, April 7th. The stock was bought at an average price of $42.44 per share, for a total transaction of $499,985.64. Following the completion of the acquisition, the director owned 55,074 shares of the company's stock, valued at approximately $2,337,340.56. The trade was a 27.21% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have bought 64,441 shares of company stock valued at $2,734,204. 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).

Want to see what other hedge funds are holding NKE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NIKE, Inc. (NYSE:NKE - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.