Investors Purchase High Volume of NIKE Call Options (NYSE:NKE)

Key Points

• Investors made an unusually large bet on NIKE by buying 181,748 call options in one day, about 51% above the stock’s typical daily call volume.
• Analyst sentiment remains cautious overall, with multiple firms cutting price targets and the consensus rating sitting at Hold with a target price of $62.04.
• NIKE has seen some insider buying, including purchases by CEO Elliott Hill and director John W. Rogers, Jr., while the stock was also highlighted as benefiting from a broader consumer-discretionary rally.

NIKE, Inc. (NYSE:NKE - Get Free Report) was the recipient of some unusual options trading on Wednesday. Investors bought 181,748 call options on the stock. This represents an increase of 51% compared to the typical daily volume of 120,450 call options.

Analyst Ratings Changes

Several research analysts recently commented on NKE shares. Berenberg Bank reaffirmed a "neutral" rating on shares of NIKE in a research note on Wednesday, May 6th. DA Davidson downgraded NIKE from a "buy" rating to a "neutral" rating and reduced their price target for the company from $72.00 to $46.00 in a report on Thursday, April 2nd. Piper Sandler reiterated a "neutral" rating and set a $50.00 price objective (down from $60.00) on shares of NIKE in a research note on Friday, April 10th. UBS Group lowered their price target on NIKE from $58.00 to $54.00 and set a "neutral" rating for the company in a research report on Wednesday, April 1st. Finally, KeyCorp cut their price objective on shares of NIKE from $90.00 to $75.00 and set an "overweight" rating on the stock in a research report on Thursday, January 22nd. Sixteen research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $62.04.

Insider Transactions at NIKE

In other NIKE news, CEO Elliott Hill acquired 23,660 shares of the business's stock in a transaction dated Monday, April 13th. The stock was bought at an average price of $42.27 per share, with a total value of $1,000,108.20. Following the purchase, the chief executive officer owned 265,247 shares of the company's stock, valued at approximately $11,211,990.69. This trade represents a 9.79% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director John W. Rogers, Jr. bought 4,000 shares of the stock in a transaction dated Thursday, April 9th. The stock was bought at an average cost of $43.34 per share, with a total value of $173,360.00. Following the purchase, the director owned 41,022 shares in the company, valued at $1,777,893.48. The trade was a 10.80% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders purchased 64,441 shares of company stock valued at $2,734,204. 0.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NIKE

Several institutional investors have recently added to or reduced their stakes in NKE. Main Street Financial Solutions LLC grew its holdings in shares of NIKE by 4.2% in the second quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker's stock worth $244,000 after purchasing an additional 139 shares during the last quarter. Diligent Investors LLC boosted its holdings in shares of NIKE by 4.3% in the fourth quarter. Diligent Investors LLC now owns 3,719 shares of the footwear maker's stock valued at $237,000 after purchasing an additional 153 shares during the period. CVA Family Office LLC grew its stake in NIKE by 8.0% in the third quarter. CVA Family Office LLC now owns 2,113 shares of the footwear maker's stock worth $147,000 after purchasing an additional 156 shares in the last quarter. Naples Global Advisors LLC increased its holdings in NIKE by 1.9% during the 3rd quarter. Naples Global Advisors LLC now owns 8,514 shares of the footwear maker's stock worth $597,000 after purchasing an additional 159 shares during the period. Finally, Massachusetts Financial Services Co. MA raised its position in NIKE by 4.3% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 3,978 shares of the footwear maker's stock valued at $253,000 after purchasing an additional 163 shares in the last quarter. Hedge funds and other institutional investors own 64.25% of the company's stock.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE is benefiting from a wider rally in consumer-discretionary shares as lower energy prices and falling bond yields support spending-sensitive stocks. Nike Stock Soars As Energy Prices And Bond Yields Drop
• Neutral Sentiment: Several recent articles suggest the stock may be pricing in a difficult outlook, with one note saying the risks are largely reflected in the shares while another argues NIKE is still not cheap enough for a clear bullish case.
• Neutral Sentiment: Commentary from Jim Cramer and other market watchers has focused on China as a key swing factor for NIKE, highlighting both the potential recovery opportunity and the ongoing pressure from weak demand, local competition, and inventory concerns.
• Neutral Sentiment: Recent coverage also points to strategic efforts such as NIKE’s use of Google AI to help lift sales, but that announcement has not been enough to reverse recent weakness in the stock.
• Negative Sentiment: Investors remain cautious about NIKE’s growth outlook because of continued pressure in China, which has weighed on revenue, increased competitive intensity, and forced the company to reset parts of its growth narrative under new leadership.

NIKE Price Performance

NYSE:NKE traded up $1.78 on Wednesday, reaching $44.20. 25,644,993 shares of the company's stock traded hands, compared to its average volume of 19,583,080. The stock has a 50-day simple moving average of $47.29 and a 200-day simple moving average of $57.70. NIKE has a 12 month low of $41.35 and a 12 month high of $80.17. The firm has a market cap of $65.45 billion, a PE ratio of 29.27, a P/E/G ratio of 2.26 and a beta of 1.12. The company has a quick ratio of 1.45, a current ratio of 2.14 and a debt-to-equity ratio of 0.50.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings data on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.06. The firm had revenue of $11.28 billion during the quarter, compared to analyst estimates of $11.23 billion. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The business's quarterly revenue was up .1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.54 earnings per share. Equities research analysts forecast that NIKE will post 1.51 earnings per share for the current year.

NIKE Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be given a dividend of $0.41 per share. The ex-dividend date is Monday, June 1st. This represents a $1.64 dividend on an annualized basis and a dividend yield of 3.7%. NIKE's dividend payout ratio (DPR) is presently 108.61%.

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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