Saudi Central Bank Increases Stake in NIKE, Inc. $NKE

Key Points

• Saudi Central Bank increased its NIKE stake by 90.9% in the second quarter, bringing its holdings to 83,965 shares valued at approximately $3.45 million. Institutional investors collectively own 64.25% of NIKE.
• NIKE reported quarterly EPS of $0.20, exceeding estimates of $0.11, while revenue reached $10.97 billion; however, sales declined 1.1% year over year. The company announced a quarterly dividend of $0.41, representing a 4.3% annualized yield.
• Shares opened at $38.39, near their one-year low, and analysts maintain a consensus “Hold” rating with an average price target of $52.94. Recent coverage reflects uncertainty around the company’s turnaround, with some analysts citing potential upside and others warning of limited margin of safety.

Saudi Central Bank grew its stake in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 90.9% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 83,965 shares of the footwear maker's stock after buying an additional 39,986 shares during the period. Saudi Central Bank's holdings in NIKE were worth $3,447,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently modified their holdings of the company. J. Stern & Co. LLP grew its position in shares of 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 valued at $3,061,555,000 after purchasing an additional 47,956,692 shares in the last quarter. Norges Bank purchased a new position in NIKE during the 4th quarter valued at approximately $829,956,000. Flossbach Von Storch SE bought a new stake in NIKE in the 2nd quarter worth approximately $488,714,000. Harris Associates L P bought a new stake in NIKE in the 2nd quarter worth approximately $621,525,000. Finally, Capital World Investors raised its holdings 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 acquiring an additional 6,830,938 shares in the last quarter. Hedge funds and other institutional investors own 64.25% of the company's stock.

NIKE Price Performance

NKE opened at $38.39 on Monday. The business's 50-day moving average is $41.58 and its two-hundred day moving average is $46.16. NIKE, Inc. has a 1 year low of $37.95 and a 1 year high of $76.97. 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 firm has a market capitalization of $56.95 billion, a PE ratio of 18.37, a price-to-earnings-growth ratio of 1.88 and a beta of 1.10.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, beating the consensus estimate of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The business had revenue of $10.97 billion during the quarter, compared to analyst estimates of $10.85 billion. During the same period in the prior year, the firm posted $0.14 earnings per share. The company's quarterly revenue was down 1.1% on a year-over-year basis. Research analysts anticipate that NIKE, Inc. will post 1.74 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be paid a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 4.3%. The ex-dividend date is Tuesday, September 1st. NIKE's dividend payout ratio (DPR) is 78.47%.

Wall Street Analyst Weigh In

NKE has been the subject of a number of recent research reports. Rothschild & Co Redburn cut their target price on shares of NIKE from $45.00 to $37.00 and set a "sell" rating for the company in a report on Friday, July 17th. Robert W. Baird reiterated an "outperform" rating and set a $70.00 price objective on shares of NIKE in a research report on Wednesday, July 1st. Truist Financial set a $42.00 price objective on NIKE and gave the company a "hold" rating in a report on Wednesday, August 26th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $45.00 target price on shares of NIKE in a research report on Tuesday, August 25th. Finally, Berenberg Bank set a $49.00 price objective on shares of NIKE and gave the stock a "hold" rating in a research note on Friday, July 3rd. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, NIKE currently has an average rating of "Hold" and an average price target of $52.94.

Trending Headlines about NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Analysts are bullish on Nike among selected consumer-cyclical companies, supporting the view that the stock’s depressed valuation could offer upside if the company executes its turnaround. Analysts Are Bullish on These Consumer Cyclical Stocks: Nike (NKE), Ferrari (RACE)
• Positive Sentiment: Nike is expanding its Strength Pro Equipment business with customizable Power Rack systems installed at prominent athletic facilities, including U.S. Soccer, USC and professional women’s sports venues. The initiative could deepen institutional relationships and create a broader growth opportunity beyond footwear and apparel. Nike’s Custom Power Racks Might Change The Case For Investing In NIKE (NKE)
• Neutral Sentiment: Some investment coverage describes Nike as potentially undervalued after its steep decline, while emphasizing that the opportunity depends on stabilizing margins and successfully improving the business. Recent earnings also showed an EPS beat and slightly stronger-than-expected revenue, although sales declined year over year. Down almost 80%, is Nike stock undervalued or a value trap?
• Neutral Sentiment: Broader market conditions could affect NKE: investors are focused on the August employment report because it may influence the Federal Reserve’s interest-rate decision later this month. Apparel and luxury-goods stock screens also continue to identify Nike as a company worth watching. 5 Things to Know Before the Stock Market Opens on Friday
• Negative Sentiment: Bearish commentary says Nike faces a difficult turnaround and that its current valuation may provide limited margin of safety, raising the risk that the stock is a value trap if profitability and demand do not recover. Nike: A Difficult Turnaround At A Price That Offers Little Margin of Safety
• Negative Sentiment: Nike is reportedly closing 11 U.S. stores, signaling continued efforts to rationalize its retail footprint and potentially reflecting weaker store economics or changing shopping patterns. Nike closes 11 stores across the US

Insider Activity

In other NIKE news, CFO Matthew Friend sold 2,463 shares of NIKE stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $102,460.80. Following the transaction, the chief financial officer directly owned 82,165 shares of the company's stock, valued at approximately $3,418,064. The trade was a 2.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 stock in a transaction on 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 owned 57,436 shares of the company's stock, valued at approximately $2,415,183.80. This represents a 7.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 26,142 shares of company stock valued at $1,169,380 over the last three months. Company insiders own 1.10% of the company's stock.

NIKE Company 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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