NIKE (NYSE:NKE) Downgraded to "Hold" Rating by Evercore

Key Points

• Evercore downgraded NIKE from strong-buy to hold, adding to a cautious analyst backdrop. The stock now has a consensus Hold rating and a consensus price target of $60.01.
• NIKE shares were down 1.6% and opened at $42.49, near the lower end of their 52-week range of $41.35 to $80.17. The stock is also trading below both its 50-day and 200-day moving averages.
• The company’s latest quarter showed mixed results: EPS of $0.35 beat estimates, while revenue of $11.28 billion slightly topped forecasts but was nearly flat year over year. Recent news also highlights a new CFO appointment and reaffirmed fourth-quarter guidance, though analysts remain concerned about NIKE’s turnaround progress.

NIKE (NYSE:NKE - Get Free Report) was downgraded by investment analysts at Evercore from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

Other analysts have also recently issued research reports about the stock. The Goldman Sachs Group set a $46.00 target price on shares of NIKE and gave the company a "neutral" rating in a research note on Tuesday. Berenberg Bank reiterated a "neutral" rating on shares of NIKE in a research note on Wednesday, May 6th. Truist Financial lowered their price objective on NIKE from $69.00 to $57.00 and set a "buy" rating on the stock in a research note on Wednesday, April 1st. China Renaissance dropped their target price on NIKE from $74.60 to $50.30 and set a "hold" rating for the company in a report on Thursday, April 2nd. Finally, Deutsche Bank Aktiengesellschaft cut their target price on NIKE from $54.00 to $51.00 and set a "hold" rating for the company in a research report on Wednesday, April 1st. Fourteen analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $60.01.

NIKE Stock Down 1.6%

Shares of NKE stock opened at $42.49 on Tuesday. NIKE has a one year low of $41.35 and a one year high of $80.17. 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 stock has a fifty day moving average price of $44.38 and a 200 day moving average price of $54.40. The stock has a market cap of $62.92 billion, a P/E ratio of 28.14, a price-to-earnings-growth ratio of 1.87 and a beta of 1.12.

NIKE (NYSE:NKE - Get Free Report) last announced its quarterly earnings results on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.06. The firm had revenue of $11.28 billion for 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%. The business's revenue for the quarter was up .1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.54 EPS. Analysts predict that NIKE will post 1.49 earnings per share for the current year.

Insider Activity at NIKE

In other news, Director John W. Rogers, Jr. acquired 4,000 shares of the company's stock in a transaction dated Thursday, April 9th. The stock was bought at an average price 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 in the company, valued at approximately $1,777,893.48. This represents a 10.80% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Timothy D. Cook bought 25,000 shares of the business's stock in a transaction dated Friday, April 10th. The stock was purchased at an average price of $42.43 per share, with a total value of $1,060,750.00. Following the purchase, the director directly owned 130,480 shares of the company's stock, valued at $5,536,266.40. The trade was a 23.70% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders have acquired 64,441 shares of company stock valued at $2,734,204. Insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On NIKE

Institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in shares of NIKE by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 116,993,541 shares of the footwear maker's stock valued at $7,453,658,000 after buying an additional 1,702,342 shares during the last quarter. State Street Corp grew its holdings in NIKE by 2.2% during the 4th quarter. State Street Corp now owns 59,315,606 shares of the footwear maker's stock worth $3,802,807,000 after acquiring an additional 1,275,494 shares during the last quarter. Capital World Investors increased its position in NIKE by 16.2% in the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock valued at $3,126,246,000 after acquiring an additional 6,830,938 shares in the last quarter. J. Stern & Co. LLP increased its position in NIKE by 49,010.4% in the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker's stock valued at $3,061,555,000 after acquiring an additional 47,956,692 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in shares of NIKE by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker's stock worth $1,677,251,000 after acquiring an additional 233,925 shares during the last quarter. Institutional investors own 64.25% of the company's stock.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE named Pfizer executive David M. Denton as its next Chief Financial Officer, a leadership change that some investors view as a constructive step for the company’s turnaround and financial execution. Reuters: Nike names Pfizer executive David Denton as CFO amid slow turnaround effort
• Positive Sentiment: NIKE also reaffirmed its fourth-quarter outlook, signaling that results remain on track ahead of its June 30 earnings report and easing some near-term uncertainty. BusinessWire: NIKE, Inc. Announces Planned CFO Transition
• Neutral Sentiment: Investors are watching the company’s upcoming investor update and earnings release closely, with analysts expecting weak quarterly profit and modest revenue growth as NIKE works to stabilize its business. Benzinga: Nike Likely To Report Lower Q4 Earnings
• Negative Sentiment: Evercore ISI downgraded NIKE and lowered its price target, citing channel weakness, Jordan brand softness, and supply delays in Europe, reinforcing concerns that the turnaround is taking longer than hoped. TipRanks: Nike Stock Slides as Analyst Flags Minimal Needle-Moving Innovation
• Negative Sentiment: Other analyst commentary has also stayed cautious, with BNP Paribas Exane reaffirming an underperform rating, suggesting sentiment remains weak despite the CFO announcement. Benzinga: NIKE underperform rating reaffirmed

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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