Rockland Trust Co. Increases Position in NIKE, Inc. $NKE

Key Points

• Rockland Trust increased its NIKE position by 14.9% in the third quarter, adding 82,308 shares for a total holding of 633,768 shares valued at approximately $22.4 million. Institutional investors and hedge funds collectively own 64.25% of NKE.
• NIKE’s shares recently traded near $33.61, close to their 12-month low of $31.97, after quarterly revenue fell 4.3% year over year to $11.21 billion. The company beat earnings expectations with EPS of $0.48 versus the $0.43 consensus estimate.
• Analyst sentiment remains cautious: multiple firms lowered price targets or ratings, resulting in a consensus “Hold” rating and an average target of $41.80. NIKE also pays a quarterly dividend of $0.41, equivalent to a 4.9% annualized yield.

Rockland Trust Co. boosted its holdings in NIKE, Inc. (NYSE:NKE - Free Report) by 14.9% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 633,768 shares of the footwear maker's stock after purchasing an additional 82,308 shares during the period. Rockland Trust Co.'s holdings in NIKE were worth $22,435,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in NKE. State Street Corp grew its holdings in shares of NIKE by 2.2% in the 4th quarter. State Street Corp now owns 59,315,606 shares of the footwear maker's stock valued at $3,802,807,000 after acquiring an additional 1,275,494 shares in the last quarter. Capital World Investors raised its holdings in NIKE by 16.2% during the fourth quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock worth $3,126,246,000 after acquiring an additional 6,830,938 shares in the last quarter. J. Stern & Co. LLP raised its holdings in NIKE by 49,010.4% during the fourth quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker's stock worth $3,061,555,000 after acquiring an additional 47,956,692 shares in the last quarter. Janus Henderson Group PLC boosted its position in NIKE by 12.5% during the fourth quarter. Janus Henderson Group PLC now owns 7,887,609 shares of the footwear maker's stock valued at $502,537,000 after purchasing an additional 874,662 shares during the last quarter. Finally, Flossbach Von Storch SE bought a new position in NIKE in the second quarter valued at approximately $488,714,000. 64.25% of the stock is currently owned by institutional investors and hedge funds.

NIKE Stock Performance

Shares of NKE traded down $0.26 during midday trading on Monday, reaching $33.61. 40,190,363 shares of the stock were exchanged, compared to its average volume of 24,214,264. The stock's 50 day simple moving average is $38.88 and its 200 day simple moving average is $42.79. The company has a market cap of $49.87 billion, a P/E ratio of 16.14, a PEG ratio of 2.58 and a beta of 1.09. NIKE, Inc. has a twelve month low of $31.97 and a twelve month high of $72.39. The company has a quick ratio of 1.39, a current ratio of 2.07 and a debt-to-equity ratio of 0.39.

NIKE (NYSE:NKE - Get Free Report) last released 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. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The business had revenue of $11.21 billion for the quarter, compared to the consensus estimate of $11.32 billion. During the same period in the prior year, the company posted $0.49 earnings per share. NIKE's revenue was down 4.3% compared to the same quarter last year. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. On average, sell-side analysts expect that NIKE, Inc. will post 1.46 earnings per share for the current year.

NIKE Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st were given a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.9%. The ex-dividend date was Tuesday, September 1st. NIKE's payout ratio is presently 78.85%.

Insider Buying and Selling

In related news, EVP Philip McCartney sold 2,559 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 $96,192.81. Following the sale, the executive vice president owned 78,121 shares of the company's stock, valued at $2,936,568.39. This represents a 3.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of the firm's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the transaction, the chief financial officer owned 82,165 shares in the company, valued at approximately $3,418,064. This trade represents a 2.91% 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. 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 corporate insiders.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. HSBC dropped their price objective on NIKE from $48.00 to $40.00 and set a "hold" rating on the stock in a research note on Monday, September 28th. UBS Group reissued a "neutral" rating and issued a $34.00 target price (down from $42.00) on shares of NIKE in a research note on Friday. Morgan Stanley set a $27.00 target price on shares of NIKE and gave the stock an "underweight" rating in a report on Friday. Zacks Research cut shares of NIKE from a "hold" rating to a "strong sell" rating in a research note on Thursday. Finally, Telsey Advisory Group set a $35.00 price objective on shares of NIKE and gave the company a "market perform" rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, twenty-two have assigned a Hold rating and eight have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $41.80.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s strong balance sheet, debt reduction and liquidity provide financial flexibility during the restructuring and could support a longer-term recovery. A small number of analysts remain bullish, including Freedom Broker, which upgraded the shares to “Buy.” Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam?
• Neutral Sentiment: NIKE beat fiscal first-quarter earnings expectations, reporting $0.48 per share versus the $0.43 consensus, but revenue fell short of estimates at $11.21 billion and declined 4.3% year over year. The company also announced restructuring actions expected to include layoffs, making the potential benefits uncertain. Is Buying Nike Stock Now a Brilliant Move or a Disaster Waiting to Happen?
• Negative Sentiment: Management expects fiscal 2027 revenue to decline by a high-single-digit percentage, signaling that the recovery will take longer than anticipated. China sales dropped 26%, while core brands, inventory levels and broader demand remain under pressure. Nike’s Earnings Are a Disaster
• Negative Sentiment: Analyst sentiment has deteriorated, with Williams Trading cutting NIKE to “Hold” and JPMorgan, Citi, BTIG and Stifel lowering expectations or price targets. Investors are also questioning valuation and dividend sustainability because projected earnings are falling and free cash flow may not fully cover distributions. NIKE Cut to Hold at Williams Trading

About NIKE

NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.

The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.

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