Niles Investment Management LLC Invests $21.96 Million in NIKE, Inc. $NKE

Key Points

• Niles Investment Management opened a new position in NIKE, buying 344,714 shares valued at about $21.96 million. The stake now makes NIKE the fund’s largest holding, representing 16.7% of its portfolio.
• NIKE shares were down 2.3% to $44.90, trading well below their 200-day moving average of $55.45. Despite the pullback, the stock still carries a market cap of $66.49 billion and a dividend yield of 3.7%.
• NIKE recently beat earnings expectations, reporting EPS of $0.35 versus $0.29 expected, while revenue came in slightly ahead of forecasts. However, analyst sentiment remains mixed, with an average Hold rating and a consensus price target of $60.89.

Niles Investment Management LLC bought a new position in shares of NIKE, Inc. (NYSE:NKE - Free Report) in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor bought 344,714 shares of the footwear maker's stock, valued at approximately $21,962,000. NIKE accounts for approximately 16.7% of Niles Investment Management LLC's holdings, making the stock its biggest position.

Several other large investors have also made changes to their positions in NKE. Norges Bank acquired a new position in shares of NIKE during the 4th quarter worth approximately $829,956,000. Harris Associates L P acquired a new position in shares of NIKE during the 2nd quarter worth approximately $621,525,000. Capital World Investors raised its stake in shares of NIKE by 16.2% during the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock worth $3,126,246,000 after buying an additional 6,830,938 shares during the period. Jasper Ridge Partners L.P. raised its stake in shares of NIKE by 2,492.4% during the 4th quarter. Jasper Ridge Partners L.P. now owns 4,883,229 shares of the footwear maker's stock worth $311,111,000 after buying an additional 4,694,859 shares during the period. Finally, Capital International Investors raised its stake in shares of NIKE by 83.3% during the 4th quarter. Capital International Investors now owns 7,642,382 shares of the footwear maker's stock worth $486,895,000 after buying an additional 3,472,515 shares during the period. 64.25% of the stock is owned by institutional investors and hedge funds.

NIKE Stock Down 2.3%

Shares of NKE opened at $44.90 on Friday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.45 and a current ratio of 2.14. The stock has a 50 day moving average price of $44.26 and a 200 day moving average price of $55.45. The stock has a market capitalization of $66.49 billion, a price-to-earnings ratio of 29.73, a PEG ratio of 1.95 and a beta of 1.12. NIKE, Inc. has a one year low of $41.35 and a one year high of $80.17.

NIKE (NYSE:NKE - Get Free Report) last issued its earnings results on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.06. The company had revenue of $11.28 billion during 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% on a year-over-year basis. During the same period in the prior year, the business earned $0.54 EPS. Equities research analysts forecast that NIKE, Inc. will post 1.49 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be issued a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 3.7%. The ex-dividend date is Monday, June 1st. NIKE's dividend payout ratio is presently 108.61%.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Recent coverage highlighted Nike’s “running revival,” suggesting improving momentum in its running category could help refresh the growth story and support a longer-term turnaround. How Nike's Running Revival Changes The Nike Stock Story
• Neutral Sentiment: Nike’s World Cup marketing push is aimed at strengthening brand visibility versus Adidas, but it is more of a strategic brand-building effort than an immediate earnings catalyst. Nike's World Cup play: take on Adidas and revitalize the brand
• Neutral Sentiment: EVP Philip McCartney sold 17,398 shares under a pre-arranged 10b5-1 plan to cover tax withholding tied to vesting equity awards, which is routine but still adds to investor caution around insider activity. SEC filing
• Negative Sentiment: RBC Capital and other commentators downgraded Nike or reiterated skepticism, arguing the turnaround is progressing more slowly than expected and raising concerns about margins, profit goals, and the pace of operational improvement. Nike (NKE) was downgraded to a Hold Rating at RBC Capital
• Negative Sentiment: Recent market commentary said Nike is “still running in place” and has limited time to prove its turnaround, reinforcing worries that the stock may remain range-bound until fundamentals improve. Nike still running in place as turnaround taking longer than expected — RBC Capital

Analyst Ratings Changes

Several brokerages have recently weighed in on NKE. Wells Fargo & Company set a $45.00 target price on NIKE and gave the stock an "equal weight" rating in a research note on Friday, May 8th. UBS Group set a $50.00 price target on NIKE and gave the stock a "neutral" rating in a research report on Wednesday. BTIG Research dropped their price target on NIKE from $90.00 to $75.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Telsey Advisory Group dropped their price target on NIKE from $65.00 to $55.00 and set a "market perform" rating for the company in a research report on Wednesday, April 1st. Finally, Jefferies Financial Group dropped their price target on NIKE from $110.00 to $90.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Fifteen investment analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $60.89.

Insider Buying and Selling

In related news, CEO Elliott Hill bought 23,660 shares of the company's stock in a transaction on Monday, April 13th. The stock was bought at an average cost of $42.27 per share, for a total transaction of $1,000,108.20. Following the acquisition, the chief executive officer directly owned 265,247 shares in the company, valued at $11,211,990.69. This represents a 9.79% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Robert Holmes Swan bought 11,781 shares of the company's stock in a transaction on Tuesday, April 7th. The stock was bought at an average price of $42.44 per share, with a total value of $499,985.64. Following the completion of the acquisition, the director owned 55,074 shares in the company, valued at $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. Insiders bought 64,441 shares of company stock worth $2,734,204 over the last quarter. Corporate insiders own 0.80% of the company's stock.

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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