NIKE, Inc. $NKE Shares Sold by Fayez Sarofim & Co

Key Points

• Fayez Sarofim & Co. cut its NIKE stake by 41.7% in the second quarter, selling 32,051 shares and retaining 44,777 shares valued at approximately $1.84 million. Institutional investors and hedge funds collectively own 64.25% of NKE.
• NIKE shares opened at $38.60, near their 12-month low of $38.41, after falling 2.2%. The stock faces concerns about weak athletic-apparel retail demand and a slower-than-expected turnaround.
• Analysts maintain a consensus “Hold” rating with an average price target of $52.94, while NIKE reported quarterly EPS and revenue above expectations despite a 1.1% year-over-year revenue decline. The company also declared a quarterly dividend of $0.41, representing a 4.2% annualized yield.

Fayez Sarofim & Co lowered its position in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 41.7% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 44,777 shares of the footwear maker's stock after selling 32,051 shares during the quarter. Fayez Sarofim & Co's holdings in NIKE were worth $1,838,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in the company. State Street Corp lifted its holdings in NIKE by 2.2% in the 4th quarter. State Street Corp now owns 59,315,606 shares of the footwear maker's stock valued at $3,802,807,000 after purchasing an additional 1,275,494 shares in the last quarter. Capital World Investors grew its holdings in shares of NIKE by 16.2% during the fourth quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock worth $3,126,246,000 after buying an additional 6,830,938 shares in the last quarter. J. Stern & Co. LLP grew its holdings in shares of NIKE by 49,010.4% during the fourth quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker's stock worth $3,061,555,000 after buying an additional 47,956,692 shares in the last quarter. Geode Capital Management LLC raised its position in shares of NIKE by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker's stock valued at $1,677,251,000 after buying an additional 233,925 shares during the last quarter. Finally, Harris Associates L P raised its position in shares of NIKE by 72.3% in the fourth quarter. Harris Associates L P now owns 14,956,882 shares of the footwear maker's stock valued at $952,903,000 after buying an additional 6,277,987 shares during the last quarter. 64.25% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, EVP Philip Mccartney sold 17,398 shares of the company's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $46.18, for a total value of $803,439.64. Following the transaction, the executive vice president directly owned 53,133 shares in the company, valued at approximately $2,453,681.94. This represents a 24.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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. Also, 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 owned 74,820 shares of the company's stock, valued at $3,112,512. The trade was a 1.18% 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. Insiders have sold 26,142 shares of company stock worth $1,169,380 over the last quarter. 1.10% of the stock is currently owned by corporate insiders.

Trending Headlines about NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Nike’s global brand, product innovation, athlete partnerships and broad distribution remain important long-term advantages. Analysts also note that the stock’s significant underperformance and lower valuation could create a rebound opportunity if the turnaround gains traction. NIKE vs. Wolverine: Which Footwear Stock Has the Winning Edge?
• Positive Sentiment: RBC said Nike’s strategic direction appears correct, including its efforts to improve products and distribution, although execution is taking longer than expected. A slower recovery may already be reflected in the depressed share price. Nike’s Strategy Correct But Taking Longer Than Expected, RBC Says
• Neutral Sentiment: Nike is approaching dividend-aristocrat status, but continued earnings weakness could make future payout growth less sustainable. This creates income appeal while also highlighting a potential risk if profitability does not improve materially. Dividend Aristocrat or Dividend Cuts: How to Evaluate the NKE Stock Payout as the Nike Turnaround Drags On
• Negative Sentiment: Dick’s Sporting Goods reported disappointing second-quarter results and warned about a difficult environment for athletic footwear and apparel. Because Dick’s is a significant Nike retail channel, the warning raised fears of weaker demand, inventory pressure and a prolonged Nike turnaround. Dick’s Sporting Goods’ Warning Bodes Poorly for Nike and Lululemon Stocks
• Negative Sentiment: Truist Securities downgraded Nike to Hold, citing retail weakness following Dick’s results. The downgrade adds to concerns that Nike’s recovery will take longer and contributed to the stock trading near its 52-week low on heavier-than-average volume. Why Is Nike Stock Falling on Wednesday?

Wall Street Analysts Forecast Growth

NKE has been the subject of several research reports. Zacks Research raised shares of NIKE from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 19th. Stifel Nicolaus set a $45.00 price objective on shares of NIKE and gave the company a "hold" rating in a report on Wednesday, July 1st. Guggenheim reissued a "buy" rating and issued a $60.00 target price (down from $74.00) on shares of NIKE in a research note on Wednesday, July 1st. Berenberg Bank set a $49.00 target price on NIKE and gave the stock a "hold" rating in a report on Friday, July 3rd. Finally, Oppenheimer dropped their price target on NIKE from $120.00 to $60.00 and set an "outperform" rating for the company in a research report on Friday, June 26th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, NIKE presently has an average rating of "Hold" and an average target price of $52.94.

NIKE Trading Down 2.2%

Shares of NKE opened at $38.60 on Thursday. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40. NIKE, Inc. has a 12-month low of $38.41 and a 12-month high of $79.51. The firm has a 50-day moving average price of $42.16 and a 200 day moving average price of $47.35. The firm has a market capitalization of $57.26 billion, a P/E ratio of 18.47, a P/E/G ratio of 1.75 and a beta of 1.11.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The firm had revenue of $10.97 billion during the quarter, compared to analysts' expectations of $10.85 billion. During the same period last year, the business earned $0.14 earnings per share. NIKE's revenue was down 1.1% compared to the same quarter last year. Sell-side analysts forecast that NIKE, Inc. will post 1.74 EPS for the current year.

NIKE Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be paid a $0.41 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $1.64 annualized dividend and a dividend yield of 4.2%. NIKE's dividend payout ratio is 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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