Royal London Asset Management Ltd. Sells 157,918 Shares of NIKE, Inc. $NKE

Key Points

• Royal London Asset Management cut its NIKE stake by 23.7%, selling 157,918 shares and retaining 507,236 shares valued at approximately $20.8 million. Institutional investors collectively own 64.25% of the company.
• NIKE faces continued challenges, including a shrinking China business, excess legacy inventory, weak consumer demand and concerns about product innovation. The stock trades near its 12-month low at $39.57, while analysts maintain a consensus “Hold” rating with a $52.94 price target.
• Despite the turnaround concerns, NIKE exceeded quarterly earnings expectations and maintains a quarterly dividend of $0.41 per share, equivalent to a 4.1% yield. The company is also extending its exclusive Brazilian distribution agreement through 2034 and appointed Walmart veteran Jane Ewing as chief commercial officer.

Royal London Asset Management Ltd. reduced its position in NIKE, Inc. (NYSE:NKE - Free Report) by 23.7% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 507,236 shares of the footwear maker's stock after selling 157,918 shares during the period. Royal London Asset Management Ltd.'s holdings in NIKE were worth $20,822,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors also recently modified their holdings of the company. J. Stern & Co. LLP boosted its position in NIKE by 49,010.4% in 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 purchasing an additional 47,956,692 shares during the last quarter. Norges Bank bought a new stake in shares of NIKE during the 4th quarter valued at about $829,956,000. Flossbach Von Storch SE purchased a new stake in shares of NIKE during the 2nd quarter valued at about $488,714,000. Harris Associates L P purchased a new stake in shares of NIKE during the 2nd quarter valued at about $621,525,000. Finally, Capital World Investors lifted its stake in shares of NIKE by 16.2% in the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock worth $3,126,246,000 after purchasing an additional 6,830,938 shares during the period. Institutional investors own 64.25% of the company's stock.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Traders purchased 182,729 NKE call options, 59% above typical daily call volume. The activity may reflect increased bullish speculation, although options positioning does not guarantee sustained buying in the shares.
• Positive Sentiment: Grupo SBF extended its exclusive Nike distribution agreement in Brazil through 2034. The longer arrangement provides continued access to an important Latin American market and supports Nike’s regional distribution network. Grupo SBF Extends Exclusive Nike Distribution Deal in Brazil to 2034
• Neutral Sentiment: NIKE said it will release fiscal first-quarter 2027 results on October 1 after the market close, followed by a management conference call. Investors will look for evidence that the company’s turnaround is improving sales, inventory levels and margins. NIKE Announces First Quarter Fiscal 2027 Earnings and Conference Call
• Neutral Sentiment: NIKE appointed Walmart veteran Jane Ewing as chief commercial officer to help lead its comeback. The hire could strengthen execution and retail strategy, but investors are likely to want measurable results before assigning significant value to the turnaround. Nike Taps Walmart Veteran to Help Drive Comeback
• Negative Sentiment: Reports say Nike’s China business continues to shrink as domestic competitors gain market share and the brand struggles to remain locally relevant. China weakness threatens a key source of long-term growth. Why America’s Biggest Brands Keep Losing in China
• Negative Sentiment: Analysts and market commentary continue to cite soft consumer confidence, weaker traffic, excess legacy inventory and doubts about product innovation. These concerns reinforce expectations for a prolonged recovery and have contributed to reduced price targets and bearish sentiment.

Wall Street Analyst Weigh In

NKE has been the topic of a number of research reports. Piper Sandler dropped their price objective on shares of NIKE from $50.00 to $45.00 and set a "neutral" rating on the stock in a report on Wednesday, July 1st. Weiss Ratings upgraded shares of NIKE from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, July 17th. Truist Financial set a $42.00 price target on shares of NIKE and gave the stock a "hold" rating in a research note on Wednesday. Royal Bank Of Canada reissued a "sector perform" rating and set a $45.00 price objective on shares of NIKE in a research report on Tuesday, August 25th. Finally, BTIG Research restated a "buy" rating and issued a $55.00 price objective on shares of NIKE in a research note on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $52.94.

Insider Activity

In other NIKE news, COO Venkatesh Alagirisamy sold 890 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $37,024.00. Following the completion of the sale, the chief operating officer owned 74,820 shares in the company, valued at approximately $3,112,512. This represents a 1.18% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the firm's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the sale, the insider directly owned 57,436 shares in the company, valued at approximately $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 26,142 shares of company stock worth $1,169,380 in the last quarter. Corporate insiders own 1.10% of the company's stock.

NIKE Trading Down 0.1%

Shares of NYSE:NKE opened at $39.57 on Monday. The stock has a 50 day moving average of $41.91 and a 200 day moving average of $47.01. The company has a market cap of $58.70 billion, a PE ratio of 18.93, a price-to-earnings-growth ratio of 1.76 and a beta of 1.11. NIKE, Inc. has a 12-month low of $38.17 and a 12-month high of $79.13. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40.

NIKE (NYSE:NKE - Get Free Report) last released its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The company had revenue of $10.97 billion for the quarter, compared to analysts' expectations of $10.85 billion. During the same quarter last year, the business earned $0.14 EPS. The firm's revenue was down 1.1% compared to the same quarter last year. As a group, equities research analysts expect that NIKE, Inc. will post 1.74 EPS for the current year.

NIKE Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be given a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a dividend yield of 4.1%. The ex-dividend date is Tuesday, September 1st. NIKE's dividend payout ratio (DPR) is presently 78.47%.

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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