NIKE, Inc. $NKE Stock: Ramsay Stattman Vela & Price Inc. Lowers Holdings

Key Points

• Ramsay Stattman Vela & Price cut its NIKE stake by 88.8% in the third quarter, selling 53,075 shares and retaining 6,675 shares valued at approximately $236,000. Institutional investors and hedge funds collectively own 64.25% of NIKE.
• Analyst sentiment remains cautious: NIKE has a consensus rating of “Reduce”, with 21 Hold and 10 Sell ratings and an average price target of $41.07. Recent targets were lowered amid concerns about product execution, demand and earnings growth.
• NIKE reported quarterly EPS of $0.48, beating estimates, but revenue fell 4.3% year over year to $11.21 billion. The company maintains a $1.64 annual dividend, yielding about 4.4%, while insiders have sold 14,974 shares worth roughly $600,126 over the past 90 days.

Ramsay Stattman Vela & Price Inc. cut its stake in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 88.8% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 6,675 shares of the footwear maker's stock after selling 53,075 shares during the quarter. Ramsay Stattman Vela & Price Inc.'s holdings in NIKE were worth $236,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Columbia Asset Management raised its stake in shares of NIKE by 18.7% in the third quarter. Columbia Asset Management now owns 122,374 shares of the footwear maker's stock worth $4,332,000 after purchasing an additional 19,237 shares during the last quarter. Trellis Wealth Advisors LLC purchased a new stake in NIKE in the 3rd quarter worth $62,000. New Wave Wealth Advisors LLC increased its stake in NIKE by 58.3% during the 3rd quarter. New Wave Wealth Advisors LLC now owns 12,289 shares of the footwear maker's stock worth $434,000 after buying an additional 4,524 shares in the last quarter. Arkfeld Wealth Strategies L.L.C. acquired a new position in NIKE in the 3rd quarter valued at $3,837,000. Finally, Generali Investments Management Co LLC boosted its position in NIKE by 6.2% during the third quarter. Generali Investments Management Co LLC now owns 14,380 shares of the footwear maker's stock worth $509,000 after acquiring an additional 840 shares during the last quarter. 64.25% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: An analyst argues that Nike’s recent product-development weakness is recoverable and that the shares are undervalued after a steep decline from their peak. This provides a potential re-rating catalyst if new products and sales trends improve. Analyst says Nike will recover and shares are undervalued
• Positive Sentiment: Nike’s roughly 4.4% dividend yield and share price well below its historical peak may attract income-oriented and value investors, particularly if the company can stabilize earnings and maintain the payout. Coca-Cola and Nike high-yield dividend comparison
• Neutral Sentiment: Nike was included in recent luxury-goods and apparel-stock watchlists, increasing visibility but offering no new company-specific catalyst or change to its fundamentals. Top Luxury Goods Stocks To Watch Best Apparel Stocks Worth Watching
• Negative Sentiment: Zacks issued a negative forecast for Nike’s earnings, reinforcing concerns about slower demand, product execution and near-term profit growth. This contrasts with the longer-term recovery thesis and may limit upside until earnings estimates improve. Zacks Research Issues Negative Forecast for NIKE Earnings
• Negative Sentiment: A separate dividend comparison favored Coca-Cola over Nike, suggesting investors may view Nike’s higher yield as compensation for greater business and earnings risk rather than as a clear buy signal. Why only one high-yield dividend stock is a buy

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $33.00 price target on shares of NIKE in a research note on Friday, October 9th. CICC Research dropped their price objective on NIKE from $58.00 to $44.80 and set a "neutral" rating for the company in a research note on Thursday, July 2nd. Needham & Company LLC reiterated a "hold" rating on shares of NIKE in a report on Friday, October 2nd. Citigroup decreased their target price on NIKE from $39.00 to $32.00 and set a "neutral" rating on the stock in a research note on Friday, October 2nd. Finally, Weiss Ratings lowered NIKE from a "sell (d+)" rating to a "sell (d)" rating in a research note on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twenty-one have given a Hold rating and ten have issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $41.07.

Insider Buying and Selling

In other NIKE news, EVP Philip McCartney sold 2,559 shares of the stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $96,192.81. Following the sale, the executive vice president directly owned 78,121 shares of the company's stock, valued at approximately $2,936,568.39. This represents a 3.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $102,460.80. Following the completion of the transaction, the chief financial officer directly owned 82,165 shares in the company, valued at $3,418,064. This trade represents a 2.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is currently owned by company insiders.

NIKE Price Performance

NIKE stock opened at $37.22 on Tuesday. The firm has a market cap of $55.29 billion, a PE ratio of 17.90, a price-to-earnings-growth ratio of 4.19 and a beta of 1.09. NIKE, Inc. has a 52-week low of $31.97 and a 52-week high of $70.44. The company has a quick ratio of 1.39, a current ratio of 2.07 and a debt-to-equity ratio of 0.39. The company's 50 day moving average is $37.38 and its two-hundred day moving average is $41.45.

NIKE (NYSE:NKE - Get Free Report) last issued its quarterly earnings results on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, beating the consensus estimate of $0.43 by $0.05. The company had revenue of $11.21 billion during the quarter, compared to analysts' expectations of $11.32 billion. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The firm's revenue was down 4.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.49 EPS. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. On average, research analysts expect that NIKE, Inc. will post 1.26 EPS for the current fiscal year.

NIKE Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 1st were issued a $0.41 dividend. The ex-dividend date was Tuesday, September 1st. This represents a $1.64 dividend on an annualized basis and a yield of 4.4%. NIKE's dividend payout ratio (DPR) is 78.85%.

About NIKE

NIKE, Inc is a global athletic footwear, apparel, equipment and accessories company headquartered near Beaverton, Oregon. The company designs, develops, markets and sells products under the Nike, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE's product portfolio includes athletic and casual footwear, performance and lifestyle apparel, sports equipment, accessories and digital fitness-related offerings. The company distributes its products through company-owned retail stores, digital platforms and wholesale partners, while also operating direct-to-consumer and membership programs.

The company traces its origins to 1964, when Phil Knight and Bill Bowerman founded Blue Ribbon Sports.

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