NIKE, Inc. (NYSE:NKE) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Brokerages now give NIKE a consensus rating of “Hold”, based on 36 analysts; the average 1-year price target is about $62.04.
• Recent analyst actions have been mixed, but several firms have cut their price targets on NIKE, reflecting more cautious outlooks even as some still rate the stock a buy.
• Insiders have been buying shares, including Director Robert Holmes Swan and CEO Elliott Hill, while NIKE also reported quarterly earnings that beat estimates and declared a $0.41 quarterly dividend.

NIKE, Inc. (NYSE:NKE - Get Free Report) has earned an average rating of "Hold" from the thirty-six brokerages that are covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a sell recommendation, eighteen have given a hold recommendation and sixteen have assigned a buy recommendation to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $62.0394.

NKE has been the subject of several research analyst reports. China Renaissance lowered their target price on shares of NIKE from $74.60 to $50.30 and set a "hold" rating for the company in a research note on Thursday, April 2nd. Williams Trading lowered their target price on shares of NIKE from $80.00 to $57.00 and set a "buy" rating for the company in a research note on Wednesday, April 1st. Royal Bank Of Canada reaffirmed a "buy" rating on shares of NIKE in a research note on Wednesday, April 1st. UBS Group lowered their target price on shares of NIKE from $58.00 to $54.00 and set a "neutral" rating for the company in a research note on Wednesday, April 1st. Finally, The Goldman Sachs Group reissued a "neutral" rating and issued a $52.00 price objective (down from $76.00) on shares of NIKE in a research note on Wednesday, April 1st.

Insider Buying and Selling at NIKE

In other NIKE news, Director Robert Holmes Swan acquired 11,781 shares of the stock in a transaction dated Tuesday, April 7th. The stock was acquired at an average price of $42.44 per share, with a total value of $499,985.64. Following the completion of the purchase, the director owned 55,074 shares in the company, valued at $2,337,340.56. This trade represents a 27.21% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Elliott Hill acquired 23,660 shares of the stock in a transaction dated Monday, April 13th. The stock was acquired at an average cost 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 position. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 64,441 shares of company stock worth $2,734,204. 0.80% of the stock is owned by company insiders.

Institutional Trading of NIKE

Hedge funds have recently added to or reduced their stakes in the company. Scarborough Advisors LLC acquired a new stake in NIKE in the first quarter valued at approximately $25,000. Cornerstone Financial Management LLC acquired a new stake in NIKE in the fourth quarter valued at approximately $26,000. Sankala Group LLC acquired a new stake in NIKE in the fourth quarter valued at approximately $26,000. Meeder Asset Management Inc. raised its holdings in NIKE by 108.4% in the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock valued at $29,000 after acquiring an additional 285 shares in the last quarter. Finally, J.Safra Asset Management Corp acquired a new stake in NIKE during the fourth quarter worth approximately $29,000. Institutional investors and hedge funds own 64.25% of the company's stock.

NIKE Trading Up 0.7%

Shares of NKE stock opened at $44.70 on Friday. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.14 and a quick ratio of 1.45. The firm has a market cap of $66.20 billion, a PE ratio of 29.60, a price-to-earnings-growth ratio of 2.37 and a beta of 1.12. The company has a 50-day moving average of $46.59 and a two-hundred day moving average of $57.32. NIKE has a 1-year low of $41.35 and a 1-year high of $80.17.

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

NIKE Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be paid a $0.41 dividend. The ex-dividend date of this dividend is Monday, June 1st. This represents a $1.64 annualized dividend 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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