South Dakota Investment Council Grows Position in NIKE, Inc. $NKE

Key Points

• South Dakota Investment Council increased its NIKE stake by 62.6% in the first quarter, adding 80,300 shares to reach 208,477 shares valued at approximately $11.0 million. Institutional investors collectively own 64.25% of NIKE.
• NIKE exceeded quarterly expectations with earnings of $0.20 per share versus the $0.11 consensus and revenue of $10.97 billion, though revenue declined 1.1% year over year.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $53.74. NIKE’s shares opened at $43.22, near the lower end of their 52-week range, while the company maintains a 3.8% dividend yield.

South Dakota Investment Council raised its holdings in shares of NIKE, Inc. (NYSE:NKE - Free Report) by 62.6% during the first quarter, according to its most recent filing with the SEC. The firm owned 208,477 shares of the footwear maker's stock after purchasing an additional 80,300 shares during the period. South Dakota Investment Council's holdings in NIKE were worth $11,012,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the business. Scarborough Advisors LLC purchased a new position in NIKE during the first quarter valued at approximately $25,000. Cornerstone Financial Management LLC bought a new stake in NIKE during the 4th quarter valued at $26,000. Sankala Group LLC purchased a new position in shares of NIKE in the 4th quarter valued at $26,000. Meeder Asset Management Inc. raised its position in shares of NIKE by 108.4% in the 1st 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, J.Safra Asset Management Corp purchased a new stake in shares of NIKE during the 4th quarter worth $29,000. Institutional investors own 64.25% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on NKE shares. Wall Street Zen upgraded NIKE from a "sell" rating to a "hold" rating in a research note on Saturday, May 16th. Needham & Company LLC reissued a "hold" rating on shares of NIKE in a research report on Thursday, June 4th. The Goldman Sachs Group lowered their price target on shares of NIKE from $46.00 to $42.00 and set a "neutral" rating on the stock in a report on Wednesday, July 1st. Truist Financial cut their price objective on shares of NIKE from $69.00 to $57.00 and set a "buy" rating on the stock in a research report on Wednesday, April 1st. Finally, Telsey Advisory Group set a $47.00 target price on shares of NIKE and gave the company a "market perform" rating in a research report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nineteen have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $53.74.

NIKE Trading Up 0.4%

NIKE stock opened at $43.22 on Thursday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. The stock has a market cap of $64.12 billion, a PE ratio of 20.68, a price-to-earnings-growth ratio of 1.91 and a beta of 1.12. The stock has a 50-day moving average of $43.66 and a two-hundred day moving average of $50.59. NIKE, Inc. has a one year low of $40.00 and a one year high of $80.17.

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

NIKE Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st were given a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend was Monday, June 1st. NIKE's payout ratio is currently 78.47%.

Insiders Place Their Bets

In other NIKE news, EVP Philip Mccartney sold 17,398 shares of the company's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $46.18, for a total transaction of $803,439.64. Following the transaction, the executive vice president owned 53,133 shares in the company, valued at approximately $2,453,681.94. This represents a 24.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 1.10% of the company's stock.

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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