NIKE, Inc. $NKE Stake Reduced by HS Management Partners LLC

Key Points

• HS Management Partners LLC cut its NIKE stake by 31.2% in the first quarter, selling 102,403 shares and leaving it with 225,597 shares worth about $11.9 million.
• NIKE reported better-than-expected quarterly results, with EPS of $0.20 and revenue of $10.97 billion, both ahead of analyst forecasts, even though revenue still declined 1.1% year over year.
• Wall Street remains cautious overall: analysts have been cutting price targets, and the consensus rating on NIKE is currently Hold with an average target price of $55.42.

HS Management Partners LLC lowered its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 31.2% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 225,597 shares of the footwear maker's stock after selling 102,403 shares during the quarter. NIKE accounts for 4.2% of HS Management Partners LLC's portfolio, making the stock its 10th biggest position. HS Management Partners LLC's holdings in NIKE were worth $11,916,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently made changes to their positions in NKE. Vanguard Group Inc. grew its holdings in NIKE by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 116,993,541 shares of the footwear maker's stock worth $7,453,658,000 after acquiring an additional 1,702,342 shares during the last quarter. State Street Corp raised its stake in shares of NIKE by 2.2% during the fourth quarter. State Street Corp now owns 59,315,606 shares of the footwear maker's stock valued at $3,802,807,000 after acquiring an additional 1,275,494 shares during the last quarter. Capital World Investors raised its stake 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 valued at $3,126,246,000 after acquiring an additional 6,830,938 shares during the last quarter. J. Stern & Co. LLP boosted 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 purchasing an additional 47,956,692 shares during the period. Finally, Geode Capital Management LLC boosted its holdings in shares of NIKE by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker's stock worth $1,677,251,000 after purchasing an additional 233,925 shares during the period. Hedge funds and other institutional investors own 64.25% of the company's stock.

NIKE Trading Up 0.1%

NKE opened at $44.12 on Friday. The company has a quick ratio of 1.45, a current ratio of 1.96 and a debt-to-equity ratio of 0.40. NIKE, Inc. has a 52 week low of $40.00 and a 52 week high of $80.17. The stock has a market cap of $65.34 billion, a PE ratio of 21.11, a PEG ratio of 2.49 and a beta of 1.12. The business has a 50 day moving average of $43.86 and a 200-day moving average of $53.16.

NIKE (NYSE:NKE - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share 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 analysts' expectations of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The firm's revenue for the quarter was down 1.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.14 earnings per share. Equities research analysts predict that NIKE, Inc. will post 1.8 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st were issued a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date was Monday, June 1st. NIKE's payout ratio is 78.47%.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on NKE shares. Guggenheim restated a "buy" rating and set a $60.00 price target (down from $74.00) on shares of NIKE in a report on Wednesday. Robert W. Baird reiterated an "outperform" rating and issued a $70.00 price objective on shares of NIKE in a report on Wednesday. Piper Sandler cut their price objective on NIKE from $50.00 to $45.00 and set a "neutral" rating on the stock in a research report on Wednesday. Evercore set a $46.00 target price on NIKE and gave the company an "in-line" rating in a research note on Tuesday, June 23rd. Finally, Citigroup decreased their target price on NIKE from $47.00 to $45.00 and set a "neutral" rating for the company in a report on Wednesday. Fourteen investment analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $55.42.

Trending Headlines about NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s fiscal Q4 results beat analyst expectations, with revenue and EPS coming in ahead of forecasts, which has helped support the shares and reinforced hopes that the turnaround is starting to take hold. Stock Market Today, July 1: Nike Jumps After Quarterly Results Beat Analyst Estimates
• Positive Sentiment: Several commentaries argue the recent selloff may have gone too far, with some analysts and market watchers calling NIKE a rebound candidate after a difficult year. Prediction: Nike Stock Set for 25% Rebound After Brutal Year
• Neutral Sentiment: Reports highlight that NIKE’s digital sales fell while the company continues shifting its mix between direct-to-consumer and wholesale channels, suggesting the turnaround is still incomplete. Nike Digital Drops 12% as Brands Rebalance D2C and Wholesale
• Negative Sentiment: Barclays reportedly cut its price target on NIKE, signaling lower near-term expectations from one of the long-time bullish banks on the name. Barclays cuts Nike stock price target from $67 to $52
• Negative Sentiment: 7-Eleven filed a trademark lawsuit accusing NIKE of copying branding elements in an upcoming Air Max 95 design, adding legal overhang and potential distraction for the company. 7-Eleven sues Nike over alleged Air Max 95 design infringing brand colors

Insider Transactions at NIKE

In other NIKE news, CEO Elliott Hill purchased 23,660 shares of the stock in a transaction that occurred on Monday, April 13th. The stock was bought at an average cost of $42.27 per share, with a total value of $1,000,108.20. Following the transaction, the chief executive officer directly owned 265,247 shares in the company, valued at approximately $11,211,990.69. The trade was a 9.79% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Timothy D. Cook acquired 25,000 shares of the company'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 purchase, the director directly owned 130,480 shares of the company's stock, valued at $5,536,266.40. This represents a 23.70% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders bought 64,441 shares of company stock worth $2,734,204. 0.80% of the stock is owned by insiders.

NIKE 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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