NIKE, Inc. $NKE Stock: Vantage Investment Partners LLC Trims Stake

Key Points

• Vantage Investment Partners cut its NIKE stake by 77.4% in the third quarter, selling 138,408 shares and retaining 40,520 shares valued at approximately $1.43 million. Institutional investors collectively own 64.25% of NIKE.
• Analyst sentiment remains cautious: NIKE carries a consensus “Reduce” rating with a $40.93 price target, while several firms recently lowered their targets and maintained Hold, Underperform, or Underweight ratings.
• NIKE beat quarterly EPS estimates, but revenue fell 4.3% year over year and missed expectations. Shares opened at $37.15, near their 52-week low, while the company’s $1.64 annual dividend represented a 4.4% yield.

Vantage Investment Partners LLC lessened its stake in NIKE, Inc. (NYSE:NKE - Free Report) by 77.4% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 40,520 shares of the footwear maker's stock after selling 138,408 shares during the quarter. Vantage Investment Partners LLC's holdings in NIKE were worth $1,434,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently bought and sold shares of the company. FAS Wealth Partners Inc. grew its position in NIKE by 4.2% during the 1st quarter. FAS Wealth Partners Inc. now owns 6,109 shares of the footwear maker's stock valued at $323,000 after purchasing an additional 249 shares during the last quarter. Elevation Wealth Partners LLC increased its stake in NIKE by 34.6% during the 2nd quarter. Elevation Wealth Partners LLC now owns 989 shares of the footwear maker's stock valued at $41,000 after purchasing an additional 254 shares in the last quarter. Midwest Professional Planners LTD. raised its holdings in NIKE by 1.5% in the first quarter. Midwest Professional Planners LTD. now owns 17,904 shares of the footwear maker's stock worth $946,000 after buying an additional 266 shares during the last quarter. Advance Capital Management Inc. raised its holdings in NIKE by 7.1% in the first quarter. Advance Capital Management Inc. now owns 4,203 shares of the footwear maker's stock worth $222,000 after buying an additional 279 shares during the last quarter. Finally, Elmwood Wealth Management Inc. raised its holdings in NIKE by 2.7% in the second quarter. Elmwood Wealth Management Inc. now owns 10,666 shares of the footwear maker's stock worth $438,000 after buying an additional 279 shares during the last quarter. Institutional investors own 64.25% of the company's stock.

Wall Street Analyst Weigh In

NKE has been the topic of several analyst reports. Royal Bank Of Canada dropped their target price on shares of NIKE from $45.00 to $40.00 and set a "sector perform" rating on the stock in a research note on Tuesday, September 29th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $33.00 price target on shares of NIKE in a research report on Friday, October 9th. Bank of America restated an "underperform" rating and issued a $24.00 price objective (down from $30.00) on shares of NIKE in a report on Friday, October 2nd. KeyCorp restated a "sector weight" rating on shares of NIKE in a report on Friday, October 2nd. Finally, JPMorgan Chase & Co. lowered their price objective on NIKE from $40.00 to $33.00 and set an "underweight" rating on the stock in a research report on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty-one have given a Hold rating and eleven have given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $40.93.

NIKE Price Performance

Shares of NYSE:NKE opened at $37.15 on Thursday. NIKE, Inc. has a fifty-two week low of $31.97 and a fifty-two week high of $69.14. The business has a 50-day simple moving average of $37.02 and a two-hundred day simple moving average of $46.54. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.39 and a current ratio of 2.07. The firm has a market cap of $55.17 billion, a price-to-earnings ratio of 17.86, a price-to-earnings-growth ratio of 4.37 and a beta of 1.09.

NIKE (NYSE:NKE - Get Free Report) last posted its earnings results on Thursday, October 1st. The footwear maker reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.05. The business had revenue of $11.21 billion for 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 business's revenue for the quarter was down 4.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.49 EPS. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. On average, analysts expect that NIKE, Inc. will post 1.22 earnings per share for the current year.

NIKE Announces Dividend

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

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s upcoming Investor Day could provide greater clarity on its product, leadership, geographic and brand-recovery strategies. The company is also pursuing its “Pace Transformation,” which targets approximately $2.5 billion in cumulative savings through fiscal 2031 and could improve margins if successfully executed. NIKE Investor Day announcement NIKE Pace Transformation analysis
• Neutral Sentiment: At roughly $37 per share, NIKE’s dividend yield has become unusually attractive relative to government bonds, which may support income-oriented demand. However, the valuation depends on whether the company can restore sales growth and generate enough cash to comfortably fund the payout. NIKE dividend analysis
• Negative Sentiment: Analysts and market commentary remain cautious. Wolfe Research initiated coverage with an Underperform rating, while the consensus price target was reduced. Recent comparisons also favor adidas, which is reportedly benefiting from stronger sales, digital momentum and improving profitability. Wolfe Research NIKE rating NIKE versus adidas growth comparison
• Negative Sentiment: The latest earnings showed the core problem: revenue declined 4.3% year over year and came in below expectations, despite an earnings-per-share beat. Investors are therefore focused on whether innovation and cost cuts can reverse declining demand. The dividend may also be at risk if cash generation remains below distributions. NIKE dividend risk analysis

Insider Activity at NIKE

In other news, COO Venkatesh Alagirisamy sold 3,671 shares of the business's stock in a transaction that occurred on 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 directly owned 104,862 shares of the company's stock, valued at $3,941,762.58. The trade was a 3.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $96,192.81. Following the transaction, the executive vice president owned 78,121 shares in the company, valued at approximately $2,936,568.39. This trade represents a 3.17% decrease in their position. 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 sold 14,974 shares of company stock valued at $600,126 over the last ninety days. Company insiders own 1.10% of the company's stock.

NIKE Company Profile

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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