NIKE (NYSE:NKE) Issues Quarterly Earnings Results, Beats Estimates By $0.22 EPS

Key Points

• NIKE reported a quarterly earnings per share (EPS) of $0.49, exceeding analysts' expectations of $0.27 by $0.22.
• The company declared a quarterly dividend of $0.40, resulting in an annualized dividend of $1.60, and a yield of 2.3%.
• Several analysts upgraded NIKE's stock rating, with price targets raised significantly, indicating increased optimism about the company's future performance.

NIKE (NYSE:NKE - Get Free Report) issued its earnings results on Tuesday. The footwear maker reported $0.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.27 by $0.22, Zacks reports. NIKE had a return on equity of 23.33% and a net margin of 6.95%.

NIKE Trading Up 0.2%

Shares of NYSE NKE traded up $0.17 during trading on Tuesday, reaching $69.72. The company had a trading volume of 33,896,336 shares, compared to its average volume of 16,142,775. The company's fifty day moving average price is $74.90 and its 200-day moving average price is $67.25. NIKE has a 12 month low of $52.28 and a 12 month high of $89.64. The stock has a market cap of $102.97 billion, a P/E ratio of 32.28, a PEG ratio of 2.53 and a beta of 1.24. The company has a quick ratio of 1.50, a current ratio of 2.21 and a debt-to-equity ratio of 0.60.

NIKE Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Tuesday, September 2nd. NIKE's payout ratio is 74.07%.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on NKE. TD Cowen raised NIKE from a "hold" rating to a "buy" rating and raised their price target for the stock from $62.00 to $85.00 in a research report on Wednesday, September 10th. Argus upgraded NIKE to a "buy" rating in a research note on Sunday, July 6th. Royal Bank Of Canada upgraded NIKE from a "sector perform" rating to an "outperform" rating and raised their price target for the company from $76.00 to $90.00 in a research note on Thursday, September 18th. Wall Street Zen upgraded NIKE from a "sell" rating to a "hold" rating in a research note on Saturday, September 6th. Finally, JPMorgan Chase & Co. upgraded NIKE from a "neutral" rating to an "overweight" rating and boosted their price target for the company from $64.00 to $93.00 in a research note on Monday, July 28th. Three investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat, NIKE presently has a consensus rating of "Moderate Buy" and an average target price of $79.62.

Insider Activity at NIKE

In related news, Chairman Mark G. Parker sold 86,078 shares of the company's stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $75.93, for a total transaction of $6,535,902.54. Following the sale, the chairman owned 744,988 shares in the company, valued at $56,566,938.84. This represents a 10.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.80% of the stock is currently owned by insiders.

Institutional Trading of NIKE

Institutional investors and hedge funds have recently modified their holdings of the stock. E Fund Management Co. Ltd. purchased a new stake in shares of NIKE in the second quarter worth approximately $217,000. Main Street Financial Solutions LLC increased its position in shares of NIKE by 4.2% during the second quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker's stock valued at $244,000 after acquiring an additional 139 shares during the last quarter. Caxton Associates LLP purchased a new stake in shares of NIKE during the first quarter valued at approximately $311,000. State of Wyoming bought a new position in NIKE during the second quarter valued at $327,000. Finally, Keel Point LLC grew its holdings in NIKE by 52.4% during the second quarter. Keel Point LLC now owns 5,257 shares of the footwear maker's stock valued at $373,000 after purchasing an additional 1,807 shares during the period. 64.25% of the stock is owned by hedge funds and other institutional investors.

About NIKE

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.

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