NIKE, Inc. $NKE Stock: Equity Investment Corp Increases Position

Key Points

• Equity Investment Corp increased its NIKE stake by 50.3% in the third quarter, adding 1.22 million shares to hold about 3.64 million shares worth $129 million.
• NIKE’s “Pace” restructuring targets $2.5 billion in savings, but execution and restructuring costs could affect results. Bank of America also pushed its expected sales recovery to the third quarter of fiscal 2028, citing ongoing growth challenges.
• NIKE beat quarterly earnings-per-share estimates ($0.48 versus $0.43), but revenue missed consensus and fell 4.3% year over year. Analysts’ consensus rating is “Reduce,” with an average price target of $40.83.

Equity Investment Corp raised its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 50.3% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 3,643,376 shares of the footwear maker's stock after purchasing an additional 1,218,736 shares during the quarter. NIKE accounts for 1.8% of Equity Investment Corp's investment portfolio, making the stock its 17th biggest holding. Equity Investment Corp owned about 0.25% of NIKE worth $128,976,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also modified their holdings of NKE. State Street Corp raised its stake in shares of NIKE by 6.8% during the second quarter. State Street Corp now owns 63,598,789 shares of the footwear maker's stock worth $2,636,104,000 after purchasing an additional 4,052,428 shares during the last quarter. Flossbach Von Storch SE acquired a new stake in shares of NIKE during the second quarter worth $488,714,000. Amundi grew its position in NIKE by 59.4% in the 2nd quarter. Amundi now owns 6,460,398 shares of the footwear maker's stock valued at $265,199,000 after buying an additional 2,406,609 shares during the last quarter. Van ECK Associates Corp grew its position in NIKE by 4.8% in the 2nd quarter. Van ECK Associates Corp now owns 6,257,863 shares of the footwear maker's stock valued at $256,885,000 after buying an additional 286,395 shares during the last quarter. Finally, Assenagon Asset Management S.A. grew its position in NIKE by 92.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 4,789,274 shares of the footwear maker's stock valued at $169,540,000 after buying an additional 2,298,400 shares during the last quarter. Institutional investors and hedge funds own 64.25% of the company's stock.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s global “Pace” restructuring is intended to simplify operations, improve decision-making and supply-chain flexibility, and deliver a targeted $2.5 billion in savings. The benefits depend on successful execution, and restructuring costs could temper the gains. NIKE Reshapes Its Global Operations: Will Agility Improve?
• Positive Sentiment: NIKE has raised its dividend for 24 consecutive years, and its reported yield is about 4.2%, which may appeal to income-oriented investors. The yield alone does not resolve concerns about the company’s growth outlook. Here's How Many Shares of Nike You Would Need for $1,000 in Yearly Dividends
• Neutral Sentiment: A valuation article highlights the debate over whether NIKE’s long-term cash flows support its current valuation after a steep multiyear share-price decline. It does not establish a clear near-term catalyst. Nike (NKE) Stock Trades Near Fair Value On Cash Flow
• Neutral Sentiment: NIKE appointed Dan McKenzie as vice president and chief accounting officer, a finance leadership update with no stated change to its outlook. Nike Appoints Dan McKenzie as Chief Accounting Officer
• Negative Sentiment: Bank of America cut its earnings forecasts and pushed its expected sales inflection back to the third quarter of fiscal 2028, signaling a longer recovery and continued difficulty rebuilding growth. That delay is a key near-term overhang for the stock. Nike sales recovery pushed back as Bank of America cuts earnings forecast

Insiders Place Their Bets

In other news, EVP Philip McCartney sold 2,559 shares of the stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $96,192.81. Following the completion of the transaction, the executive vice president owned 78,121 shares in the company, valued at $2,936,568.39. This trade represents a 3.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Venkatesh Alagirisamy sold 3,671 shares of the stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total transaction of $137,992.89. Following the completion of the transaction, the chief operating officer owned 104,862 shares of the company's stock, valued at $3,941,762.58. This represents a 3.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.10% of the company's stock.

NIKE Trading Down 3.1%

Shares of NKE stock opened at $38.65 on Wednesday. The business's fifty day moving average price is $36.90 and its 200 day moving average price is $45.37. NIKE, Inc. has a 1-year low of $31.97 and a 1-year high of $69.14. The firm has a market capitalization of $57.41 billion, a PE ratio of 18.58, a P/E/G ratio of 4.66 and a beta of 1.01. The company has a debt-to-equity ratio of 0.39, a current ratio of 2.07 and a quick ratio of 1.39.

NIKE (NYSE:NKE - Get Free Report) last released its earnings results on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.05. The company had revenue of $11.21 billion during the quarter, compared to the consensus estimate of $11.32 billion. NIKE had a return on equity of 15.94% and a net margin of 6.74%. NIKE's quarterly revenue was down 4.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.49 earnings per share. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. As a group, sell-side analysts forecast that NIKE, Inc. will post 1.22 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Argus raised shares of NIKE to a "strong-buy" rating in a research note on Wednesday, July 15th. Benchmark upgraded shares of NIKE to a "hold" rating in a research note on Tuesday, September 22nd. Guggenheim reaffirmed a "buy" rating and issued a $50.00 target price on shares of NIKE in a report on Thursday, October 22nd. Barclays reiterated an "overweight" rating and set a $45.00 price target (up from $37.00) on shares of NIKE in a research note on Thursday, October 22nd. Finally, BTIG Research reiterated a "buy" rating and set a $50.00 price target on shares of NIKE in a research note on Thursday, October 22nd. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twenty-one have assigned a Hold rating and twelve have issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Reduce" and an average target price of $40.83.

NIKE Profile

NIKE, Inc. designs, develops, markets and sells athletic footwear, apparel, equipment and accessories for sports and fitness, as well as lifestyle products. Its portfolio includes the Nike and Jordan brands, and it owns Converse, which sells casual footwear, apparel and accessories. The company sells products worldwide through wholesale partners and its own retail stores and digital platforms. Its offerings serve customers across a range of sports and activities, including running, basketball, soccer and training.

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