NIKE, Inc. $NKE Shares Sold by Gateway Investment Advisers LLC

Key Points

• Gateway Investment Advisers LLC sharply reduced its NIKE position by 93.8% in the fourth quarter, selling 150,578 shares and leaving it with 9,944 shares worth about $634,000.
• NIKE shares were trading around $44.10, near their 52-week low of $42.09 and well below the 50-day and 200-day moving averages, reflecting recent weakness in the stock.
• The company recently beat earnings and revenue expectations, but analysts remain cautious overall, with a consensus rating of Hold and a $62.04 average price target; NIKE also announced a quarterly dividend of $0.41 per share.

Gateway Investment Advisers LLC cut its stake in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 93.8% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 9,944 shares of the footwear maker's stock after selling 150,578 shares during the quarter. Gateway Investment Advisers LLC's holdings in NIKE were worth $634,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Main Street Financial Solutions LLC grew its stake in NIKE by 4.2% during the 2nd quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker's stock worth $244,000 after buying an additional 139 shares during the last quarter. Diligent Investors LLC lifted its stake in NIKE by 4.3% in the fourth quarter. Diligent Investors LLC now owns 3,719 shares of the footwear maker's stock valued at $237,000 after buying an additional 153 shares during the last quarter. CVA Family Office LLC boosted its holdings in shares of NIKE by 8.0% during the third quarter. CVA Family Office LLC now owns 2,113 shares of the footwear maker's stock valued at $147,000 after acquiring an additional 156 shares during the period. Naples Global Advisors LLC grew its position in shares of NIKE by 1.9% during the third quarter. Naples Global Advisors LLC now owns 8,514 shares of the footwear maker's stock worth $597,000 after acquiring an additional 159 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA grew its position in shares of NIKE by 4.3% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 3,978 shares of the footwear maker's stock worth $253,000 after acquiring an additional 163 shares during the last quarter. 64.25% of the stock is currently owned by institutional investors and hedge funds.

NIKE Stock Down 0.7%

NKE stock opened at $44.10 on Friday. The firm's 50-day moving average is $50.16 and its two-hundred day moving average is $59.14. The company 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. NIKE, Inc. has a 52 week low of $42.09 and a 52 week high of $80.17. The company has a current ratio of 2.14, a quick ratio of 1.45 and a debt-to-equity ratio of 0.50.

NIKE (NYSE:NKE - Get Free Report) last announced its earnings results on Tuesday, March 31st. The footwear maker reported $0.35 EPS for the quarter, topping the consensus estimate of $0.29 by $0.06. The firm had revenue of $11.28 billion for the quarter, compared to analysts' expectations of $11.23 billion. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The firm's quarterly revenue was up .1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.54 earnings per share. On average, analysts forecast that NIKE, Inc. will post 1.51 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The firm also recently disclosed 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 3.7%. NIKE's dividend payout ratio (DPR) is 108.61%.

Insider Buying and Selling at NIKE

In related news, CEO Elliott Hill purchased 23,660 shares of the company's stock in a transaction on Monday, April 13th. The shares were bought at an average price of $42.27 per share, with a total value of $1,000,108.20. Following the completion of the acquisition, the chief executive officer owned 265,247 shares of the company's stock, valued at approximately $11,211,990.69. This represents a 9.79% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Robert Holmes Swan acquired 11,781 shares of NIKE stock in a transaction dated Tuesday, April 7th. The shares were bought at an average cost of $42.44 per share, with a total value of $499,985.64. Following the completion of the purchase, the director owned 55,074 shares in the company, valued at approximately $2,337,340.56. This represents a 27.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders purchased 64,441 shares of company stock worth $2,734,204. 0.80% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on NKE shares. Evercore cut their price objective on shares of NIKE from $69.00 to $57.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 1st. Bank of America restated a "neutral" rating and issued a $55.00 price target (down from $73.00) on shares of NIKE in a research note on Wednesday, April 1st. KeyCorp cut their price target on NIKE from $90.00 to $75.00 and set an "overweight" rating on the stock in a report on Thursday, January 22nd. Citigroup reduced their price objective on NIKE from $65.00 to $53.00 and set a "neutral" rating for the company in a research report on Wednesday, April 1st. Finally, DZ Bank reissued a "buy" rating on shares of NIKE in a report on Tuesday, April 21st. Sixteen research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $62.04.

Trending Headlines about NIKE

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 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).

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