NIKE (NYSE:NKE) Price Target Cut to $42.00 by Analysts at The Goldman Sachs Group

Key Points

• Goldman Sachs cut its price target on NIKE to $42 from $46 and kept a neutral rating, implying limited downside from the previous close.
• Other brokerages have also turned more cautious, with several firms trimming targets and ratings after recent results; MarketBeat shows NIKE now has an average Hold rating and a consensus target of $56.16.
• NIKE shares rose 3.6% to $42.52 on the day, while the company’s latest quarter showed earnings and revenue slightly above expectations even as year-over-year EPS fell from the prior year.

NIKE (NYSE:NKE - Get Free Report) had its price objective dropped by stock analysts at The Goldman Sachs Group from $46.00 to $42.00 in a research report issued on Wednesday,MarketScreener reports. The firm presently has a "neutral" rating on the footwear maker's stock. The Goldman Sachs Group's target price would suggest a potential downside of 1.22% from the stock's previous close.

Several other brokerages have also issued reports on NKE. UBS Group set a $50.00 target price on NIKE and gave the stock a "neutral" rating in a research report on Wednesday, June 10th. Needham & Company LLC reissued a "hold" rating on shares of NIKE in a research note on Thursday, June 4th. Weiss Ratings downgraded NIKE from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, June 8th. DA Davidson lowered NIKE from a "buy" rating to a "neutral" rating and cut their price objective for the stock from $72.00 to $46.00 in a research note on Thursday, April 2nd. Finally, Wells Fargo & Company decreased their target price on shares of NIKE from $45.00 to $40.00 and set an "equal weight" rating for the company in a research report on Wednesday. Fourteen equities research analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, NIKE has an average rating of "Hold" and an average target price of $56.16.

NIKE Trading Up 3.6%

Shares of NKE stock traded up $1.47 during trading hours on Wednesday, hitting $42.52. 15,442,622 shares of the company's stock traded hands, compared to its average volume of 20,736,977. The stock's 50 day simple moving average is $44.01 and its 200 day simple moving average is $53.56. The stock has a market cap of $62.96 billion, a PE ratio of 27.94, a price-to-earnings-growth ratio of 1.81 and a beta of 1.12. NIKE has a 12 month low of $40.00 and a 12 month high of $80.17. 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 issued its quarterly earnings data 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. NIKE had a net margin of 4.84% and a return on equity of 16.41%. The company had revenue of $11.28 billion for the quarter, compared to analysts' expectations of $11.23 billion. During the same quarter in the previous year, the firm posted $0.54 earnings per share. NIKE's revenue for the quarter was up .1% on a year-over-year basis. On average, sell-side analysts anticipate that NIKE will post 1.49 EPS for the current year.

Insider Buying and Selling at NIKE

In other NIKE news, EVP Philip Mccartney sold 17,398 shares of the business's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $46.18, for a total value of $803,439.64. Following the transaction, the executive vice president directly owned 53,133 shares of the company's stock, valued at approximately $2,453,681.94. The trade was a 24.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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. Also, Director Timothy D. Cook purchased 25,000 shares of the business's stock in a transaction on Friday, April 10th. The shares were acquired at an average price of $42.43 per share, for a total transaction of $1,060,750.00. Following the completion of the acquisition, the director directly owned 130,480 shares in the company, valued at approximately $5,536,266.40. This represents a 23.70% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 64,441 shares of company stock valued at $2,734,204 over the last ninety days. Insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Scarborough Advisors LLC acquired a new stake in NIKE in the first quarter worth $25,000. Cornerstone Financial Management LLC acquired a new position in shares of NIKE during the fourth quarter valued at about $26,000. Sankala Group LLC bought a new position in shares of NIKE during the 4th quarter worth about $26,000. Meeder Asset Management Inc. grew its stake 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 valued at $29,000 after buying an additional 285 shares during the period. Finally, J.Safra Asset Management Corp bought a new position in NIKE in the fourth quarter worth approximately $29,000. Institutional investors and hedge funds own 64.25% of the company's stock.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE beat Wall Street’s Q4 EPS and revenue estimates, with higher gross and operating profit helped by better margins and a tariff refund. Article Title
• Positive Sentiment: Several analysts still see upside from current levels, including BTIG’s reiterated Buy and Barclays’ Overweight rating, even after multiple price-target cuts. Article Title
• Neutral Sentiment: Management is prioritizing margin recovery, inventory discipline, and sport-led execution, which may help the medium-term turnaround but does not change the near-term sales slowdown. Article Title
• Negative Sentiment: China remains a major headwind, with sales there down about 12%, and broader demand remains weak in key regions such as Greater China and Europe. Article Title
• Negative Sentiment: NIKE lowered investor expectations with a cautious outlook, saying the turnaround is taking longer and warning that sales are still struggling, which is driving the stock lower in premarket trading. Article Title
• Negative Sentiment: Multiple brokerages cut price targets after the report, including JPMorgan, Piper Sandler, Bank of America, Barclays, and Wells Fargo, reinforcing caution around the stock. Article Title

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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