Rule One Partners LLC Invests $2.36 Million in NIKE, Inc. $NKE

Key Points

• Rule One Partners LLC opened a new position in NIKE during the fourth quarter, buying 37,001 shares valued at about $2.36 million. NIKE now ranks as the firm’s 6th largest holding.
• NIKE reported quarterly earnings of $0.35 per share, topping analyst estimates of $0.29, while revenue came in at $11.28 billion, slightly above expectations. Analysts still see modest full-year earnings of 1.49 EPS.
• The company declared a quarterly dividend of $0.41 per share, implying a 3.8% yield, while recent analyst sentiment remains mixed with a consensus rating of Hold and an average price target of $62.04.

Rule One Partners LLC acquired a new position in NIKE, Inc. (NYSE:NKE - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 37,001 shares of the footwear maker's stock, valued at approximately $2,357,000. NIKE accounts for about 0.3% of Rule One Partners LLC's portfolio, making the stock its 6th largest holding.

A number of other large investors have also modified their holdings of NKE. Gordian Capital Singapore Pte Ltd purchased a new stake in shares of NIKE during the third quarter worth approximately $35,000. Accredited Wealth Management LLC boosted its position in NIKE by 268.6% during the third quarter. Accredited Wealth Management LLC now owns 516 shares of the footwear maker's stock worth $36,000 after acquiring an additional 376 shares during the last quarter. Matrix Trust Co boosted its position in NIKE by 43.6% during the fourth quarter. Matrix Trust Co now owns 596 shares of the footwear maker's stock worth $38,000 after acquiring an additional 181 shares during the last quarter. Ares Financial Consulting LLC acquired a new position in NIKE during the fourth quarter worth about $40,000. Finally, Strive Asset Management LLC acquired a new position in NIKE during the third quarter worth about $40,000. Institutional investors and hedge funds own 64.25% of the company's stock.

NIKE Stock Up 0.7%

NKE opened at $43.26 on Tuesday. NIKE, Inc. has a one year low of $41.35 and a one year high of $80.17. The company has a market cap of $64.07 billion, a price-to-earnings ratio of 28.65, a PEG ratio of 1.86 and a beta of 1.12. The business's fifty day moving average is $44.67 and its two-hundred day moving average is $55.89. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.45 and a current ratio of 2.14.

NIKE (NYSE:NKE - Get Free Report) last announced its quarterly earnings data on Tuesday, March 31st. The footwear maker reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.29 by $0.06. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The business had revenue of $11.28 billion during the quarter, compared to the consensus estimate of $11.23 billion. During the same quarter in the previous year, the business earned $0.54 earnings per share. The business's revenue for the quarter was up .1% on a year-over-year basis. Analysts anticipate that NIKE, Inc. will post 1.49 EPS for the current fiscal year.

NIKE Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be paid a $0.41 dividend. The ex-dividend date is Monday, June 1st. This represents a $1.64 annualized dividend and a dividend yield of 3.8%. NIKE's dividend payout ratio (DPR) is presently 108.61%.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Guggenheim reduced their target price on shares of NIKE from $77.00 to $74.00 and set a "buy" rating on the stock in a research note on Wednesday, April 1st. Telsey Advisory Group reduced their target price on shares of NIKE from $65.00 to $55.00 and set a "market perform" rating on the stock in a research note on Wednesday, April 1st. Truist Financial reduced their target price on shares of NIKE from $69.00 to $57.00 and set a "buy" rating on the stock in a research note on Wednesday, April 1st. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $52.00 target price on shares of NIKE in a research note on Friday. Finally, JPMorgan Chase & Co. reiterated a "neutral" rating on shares of NIKE in a research report on Monday, April 13th. Sixteen investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $62.04.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s footwear business is showing early signs of stabilization, with running and football products gaining traction and innovation-led products improving the sales mix. Is NIKE's Footwear Business Showing Signs of Stabilization?
• Positive Sentiment: Wall Street is looking more favorably on NIKE’s World Cup and football push, seeing it as a way to reconnect with the brand’s core sports identity and support a turnaround. Nike’s football push gains Wall Street optimism ahead of World Cup, but turnaround concerns remain
• Positive Sentiment: Under CEO Elliott Hill, NIKE is accelerating an operational and brand reset with initiatives like “Win Now” and “Sport Offense,” aimed at refocusing on core sports, wholesale relationships, and athlete-driven marketing. Nike’s Reset Under Elliott Hill Tests Core Sports And Investor Patience
• Neutral Sentiment: Some investors remain cautious, with recent articles noting recovery risks, tariff pressure, softer demand in Greater China, and competitive threats from brands like Li Ning.
• Neutral Sentiment: Several recent fund and stock-commentary pieces highlight that institutional sentiment is still mixed, with some investors selling while others argue NIKE remains attractively positioned for a longer-term rebound.

Insiders Place Their Bets

In other NIKE news, Director John W. Rogers, Jr. purchased 4,000 shares of the stock in a transaction dated Thursday, April 9th. The shares were bought at an average cost of $43.34 per share, with a total value of $173,360.00. Following the completion of the acquisition, the director owned 41,022 shares of the company's stock, valued at approximately $1,777,893.48. This trade represents a 10.80% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Robert Holmes Swan acquired 11,781 shares of the firm's stock in a transaction dated 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 directly owned 55,074 shares of the company's stock, valued at approximately $2,337,340.56. This represents a 27.21% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders purchased 64,441 shares of company stock worth $2,734,204. 0.80% of the stock is currently owned by corporate insiders.

About NIKE

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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