Nykredit A S Makes New Investment in NIKE, Inc. $NKE

Key Points

• Nykredit A/S initiated a position in NIKE, purchasing 307,466 shares valued at approximately $12.6 million during the second quarter. Institutional investors collectively own 64.25% of the company.
• NIKE reported quarterly earnings of $0.20 per share, beating estimates of $0.11, while revenue reached $10.97 billion but declined 1.1% year over year. The company declared a quarterly dividend of $0.41, equivalent to a 4.6% annualized yield.
• NIKE shares were trading near their 52-week low at $35.56, and analysts maintained a consensus “Hold” rating with an average price target of $48.91 amid concerns about weakening global sales and the ongoing turnaround.

Nykredit A S bought a new position in NIKE, Inc. (NYSE:NKE - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 307,466 shares of the footwear maker's stock, valued at approximately $12,621,000.

Several other hedge funds have also modified their holdings of NKE. Cornerstone Financial Management LLC purchased a new stake in shares of NIKE in the 4th quarter valued at approximately $26,000. Sankala Group LLC acquired a new stake in NIKE during the fourth quarter valued at $26,000. Scarborough Advisors LLC acquired a new stake in shares of NIKE during the 1st quarter valued at about $25,000. Meeder Asset Management Inc. grew its position in NIKE by 108.4% in the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock worth $29,000 after acquiring an additional 285 shares in the last quarter. Finally, Atlas Wealth LLC bought a new stake in NIKE in the first quarter worth $31,000. 64.25% of the stock is owned by hedge funds and other institutional investors.

NIKE Trading Up 0.1%

NKE opened at $35.56 on Monday. The firm has a 50 day simple moving average of $40.33 and a 200 day simple moving average of $44.25. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36. The company has a market cap of $52.76 billion, a price-to-earnings ratio of 17.02, a price-to-earnings-growth ratio of 1.80 and a beta of 1.10. NIKE, Inc. has a fifty-two week low of $35.50 and a fifty-two week high of $76.97.

NIKE (NYSE:NKE - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.11 by $0.09. The business had revenue of $10.97 billion during 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 quarterly revenue was down 1.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.14 earnings per share. On average, sell-side analysts anticipate that NIKE, Inc. will post 1.69 earnings per share for the current year.

NIKE Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be issued a $0.41 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $1.64 annualized dividend and a dividend yield of 4.6%. NIKE's payout ratio is 78.47%.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s appointment of Alexandre Arnault, an LVMH executive, to its board could add luxury-brand, international marketing, and product-development expertise as the company works to rebuild momentum. Activist investor Bill Ackman called the appointment a positive development. Nike appoints Alexandre Arnault to board
• Positive Sentiment: NIKE’s sharply reduced valuation and rising dividend yield are attracting value-oriented investors, although the turnaround still needs to demonstrate sustained sales growth. Nike dividend and valuation analysis
• Neutral Sentiment: Shareholders rejected a proposal seeking greater disclosure of the company’s progress toward its 2030 emissions targets, siding with Nike’s board. The vote avoids an immediate governance setback but may sustain scrutiny from ESG-focused investors. Nike shareholders reject climate disclosure proposal
• Negative Sentiment: Soccer superstar Kylian Mbappé is leaving NIKE for rival On Holding, which signed him as a global ambassador and product-development partner. Investors view the move as another sign that newer athletic brands are taking share and strengthening their global presence. Nike parts ways with Kylian Mbappe
• Negative Sentiment: UBS cut its price target 13% to $42, citing deteriorating global sales trends. The bank expects fiscal first-quarter earnings to miss consensus by $0.05 per share and projects second-quarter guidance below current analyst estimates, increasing the risk of additional revisions. UBS cuts Nike price target
• Negative Sentiment: NIKE’s falling market value has raised the possibility of removal from the Dow Jones Industrial Average following its reported removal from the S&P 500. Such index changes could reduce passive-fund demand and further weaken the company’s blue-chip image. Nike Dow membership at risk

Analyst Ratings Changes

A number of brokerages have issued reports on NKE. Oppenheimer decreased their target price on NIKE from $120.00 to $60.00 and set an "outperform" rating for the company in a research report on Friday, June 26th. Truist Financial set a $42.00 target price on NIKE and gave the stock a "hold" rating in a research report on Wednesday, August 26th. Wells Fargo & Company dropped their price objective on shares of NIKE from $45.00 to $40.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 1st. Barclays lowered their price objective on NIKE from $67.00 to $52.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 1st. Finally, Robert W. Baird set a $44.00 target price on shares of NIKE and gave the stock a "neutral" rating in a research report on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty-one have given a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $48.91.

Insiders Place Their Bets

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total transaction of $137,992.89. Following the completion of the sale, the chief operating officer directly owned 104,862 shares of the company's stock, valued at approximately $3,941,762.58. This represents a 3.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 dated Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $96,192.81. Following the transaction, the executive vice president owned 78,121 shares of the company's stock, 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 have sold a total of 14,974 shares of company stock valued at $600,126 over the last 90 days. 1.10% of the stock is owned by company insiders.

NIKE Company Profile

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

NIKE's offerings include athletic and casual footwear, sportswear, apparel, accessories and athletic equipment. The company distributes its products through company-owned retail stores, digital platforms, wholesale partners and independent distributors.

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