NIKE, Inc. $NKE Position Increased by Capital World Investors

Key Points

• Capital World Investors boosted its NIKE stake by 16.2% in the fourth quarter, adding 6.83 million shares and bringing its total holding to 49.07 million shares worth about $3.13 billion.
• NIKE reported quarterly EPS of $0.35, beating estimates of $0.29, while revenue came in at $11.28 billion, slightly above expectations. Analysts still expect the company to earn 1.49 per share for the current fiscal year.
• The stock was down 1.3% and has faced mixed analyst sentiment, with several firms cutting price targets and the broader consensus sitting at Hold with an average target of $62.04.

Capital World Investors increased its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 16.2% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 49,069,951 shares of the footwear maker's stock after purchasing an additional 6,830,938 shares during the period. Capital World Investors owned 3.31% of NIKE worth $3,126,246,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in the stock. Mizuho Markets Cayman LP bought a new stake in NIKE during the 3rd quarter valued at $34,200,000. PFA Pension Forsikringsaktieselskab bought a new stake in NIKE during the 4th quarter valued at $43,188,000. Strive Asset Management LLC bought a new stake in NIKE during the 3rd quarter valued at $1,743,000. Nicholas Company Inc. raised its stake in NIKE by 33.3% during the 4th quarter. Nicholas Company Inc. now owns 123,652 shares of the footwear maker's stock valued at $7,878,000 after acquiring an additional 30,890 shares in the last quarter. Finally, Park National Corp OH raised its stake in NIKE by 81.5% during the 4th quarter. Park National Corp OH now owns 431,055 shares of the footwear maker's stock valued at $27,463,000 after acquiring an additional 193,514 shares in the last quarter. Institutional investors own 64.25% of the company's stock.

NIKE Stock Down 1.3%

Shares of NKE stock opened at $43.05 on Friday. NIKE, Inc. has a 1 year low of $41.35 and a 1 year high of $80.17. The stock has a market cap of $63.75 billion, a PE ratio of 28.51, a price-to-earnings-growth ratio of 1.86 and a beta of 1.12. The business's fifty day moving average is $44.85 and its 200-day moving average is $56.08. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.45 and a current ratio of 2.14.

NIKE (NYSE:NKE - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts' expectations of $11.23 billion. During the same period last year, the firm earned $0.54 EPS. The firm's revenue for the quarter was up .1% on a year-over-year basis. Equities analysts expect that NIKE, Inc. will post 1.49 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The company also recently declared 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. The ex-dividend date is Monday, June 1st. This represents a $1.64 annualized dividend and a dividend yield of 3.8%. NIKE's dividend payout ratio (DPR) is 108.61%.

Analyst Upgrades and Downgrades

NKE has been the topic of several recent analyst reports. DA Davidson downgraded NIKE from a "buy" rating to a "neutral" rating and cut their target price for the company from $72.00 to $46.00 in a research note on Thursday, April 2nd. Stifel Nicolaus cut their target price on NIKE from $65.00 to $56.00 and set a "hold" rating on the stock in a research note on Wednesday, April 1st. Citigroup cut their target price on NIKE from $65.00 to $53.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 1st. Wells Fargo & Company set a $45.00 target price on NIKE and gave the company an "equal weight" rating in a research note on Friday, May 8th. Finally, BNP Paribas Exane cut their target price on NIKE from $35.00 to $23.00 and set an "underperform" rating on the stock in a research note on Wednesday, April 1st. Sixteen analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, NIKE has an average rating of "Hold" and an average price target of $62.04.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE is leaning into its football business ahead of the World Cup, and analysts said the company’s investor event reinforced CEO Elliott Hill’s plan to rebuild the brand sport by sport and region by region. That could support the long-term turnaround narrative. Nike bets big on Beautiful Game ahead of World Cup
• Positive Sentiment: Investor interest in NIKE remains elevated, with recent coverage highlighting that the stock is still drawing attention from market watchers as they evaluate the company’s outlook and earnings trajectory. NIKE, Inc. (NKE) is Attracting Investor Attention: Here is What You Should Know
• Positive Sentiment: NIKE continues to push a high-profile marketing campaign, “Rip The Script,” featuring major athletes and celebrities, which may help brand visibility and demand heading into a key sports calendar. NKE Stock Eyes Red Week Ahead Of FIFA World Cup: Nike’s Star-Studded Campaign Can’t Stop It From Falling
• Neutral Sentiment: Several articles focused on shifting investor narratives and watched-the-stock commentary, but no new price target or major fundamental update was announced, limiting the immediate catalyst. How The Narrative Around Nike (NKE) Is Evolving Without A New Price Target
• Neutral Sentiment: Commentary on a possible legal inquiry about insider duties did not provide clear evidence of wrongdoing, so it is more of a headline risk than a confirmed stock-moving event. Did NIKE, Inc. Insiders Breach their Fiduciary Duties to Shareholders?
• Negative Sentiment: Some coverage suggests NIKE still faces questions about regaining momentum in a changing consumer market, while the stock has also been pressured by broader concerns that the turnaround may take time. Can Nike Regain Momentum In A Changing Consumer Market?
• Negative Sentiment: Market chatter also highlights a “red week” narrative ahead of the FIFA World Cup, implying investors remain skeptical that NIKE’s ad campaign alone will quickly reverse the stock’s weakness. Curry Defection And World Cup Push Test Nike Turnaround Expectations

Insider Transactions at NIKE

In related news, Director Timothy D. Cook bought 25,000 shares of the firm's stock in a transaction that occurred on Friday, April 10th. The shares were acquired at an average cost of $42.43 per share, for a total transaction of $1,060,750.00. Following the acquisition, the director directly owned 130,480 shares of the company's stock, valued at $5,536,266.40. The trade was a 23.70% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director John W. Rogers, Jr. bought 4,000 shares of the firm's stock in a transaction that occurred on Thursday, April 9th. The stock was bought at an average price of $43.34 per share, for a total transaction of $173,360.00. Following the completion of the acquisition, the director directly owned 41,022 shares in the company, valued at approximately $1,777,893.48. The trade was a 10.80% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased a total of 64,441 shares of company stock valued at $2,734,204 in the last quarter. 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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