NIKE (NYSE:NKE) Price Target Lowered to $55.00 at Wells Fargo & Company

Key Points

• Wells Fargo cut its price target on NIKE from $65 to $55 while keeping an "overweight" rating, and several other firms also trimmed targets amid mixed analyst sentiment; the Street consensus remains a "Moderate Buy" with an average target of $69.
• NIKE beat fiscal Q3 estimates with $11.28 billion in revenue and $0.35 EPS, but management issued weaker Q4 guidance and flagged a sharp China sales decline and margin pressure, which raised uncertainty about near-term recovery.
• The stock plunged to $45.19 (a 52-week low) on heavy volume—60.4 million shares traded versus a ~16.7 million average—reflecting the market reaction to the weak guidance and analyst target cuts.

NIKE (NYSE:NKE - Get Free Report) had its price objective reduced by equities researchers at Wells Fargo & Company from $65.00 to $55.00 in a report released on Wednesday,Benzinga reports. The firm currently has an "overweight" rating on the footwear maker's stock. Wells Fargo & Company's price target would suggest a potential upside of 21.72% from the company's previous close.

A number of other research firms also recently issued reports on NKE. Oppenheimer reiterated an "outperform" rating on shares of NIKE in a research report on Wednesday, December 17th. Guggenheim lowered their price objective on shares of NIKE from $77.00 to $74.00 and set a "buy" rating on the stock in a research note on Wednesday. Bank of America restated a "neutral" rating and set a $55.00 target price (down from $73.00) on shares of NIKE in a report on Wednesday. Raymond James Financial reaffirmed a "market perform" rating on shares of NIKE in a report on Monday, December 15th. Finally, JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $52.00 price target on shares of NIKE in a research report on Wednesday. Nineteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $69.00.

NIKE Stock Performance

NIKE stock traded down $7.63 during trading hours on Wednesday, reaching $45.19. 60,435,995 shares of the stock were exchanged, compared to its average volume of 16,695,512. NIKE has a 52-week low of $45.19 and a 52-week high of $80.17. The stock has a market cap of $66.89 billion, a P/E ratio of 26.55, a P/E/G ratio of 2.69 and a beta of 1.27. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.40 and a current ratio of 2.06. The firm's 50 day moving average is $59.68 and its 200 day moving average is $63.66.

NIKE (NYSE:NKE - Get Free Report) last posted its quarterly earnings results on Tuesday, March 31st. The footwear maker reported $0.35 EPS for the quarter, beating the consensus estimate of $0.29 by $0.06. NIKE had a return on equity of 18.43% and a net margin of 5.43%.The business had revenue of $11.28 billion during the quarter, compared to analysts' expectations of $11.23 billion. During the same period last year, the firm earned $0.54 EPS. The company's quarterly revenue was up .1% compared to the same quarter last year. Analysts predict that NIKE will post 2.05 EPS for the current fiscal year.

Hedge Funds Weigh In On NIKE

Several hedge funds and other institutional investors have recently modified their holdings of NKE. Main Street Financial Solutions LLC lifted its position in 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 buying an additional 139 shares in the last quarter. St. Clair Advisors LLC lifted its position in NIKE by 0.9% during the 3rd quarter. St. Clair Advisors LLC now owns 15,217 shares of the footwear maker's stock worth $1,061,000 after acquiring an additional 140 shares in the last quarter. Spirepoint Private Client LLC boosted its holdings in NIKE by 0.4% in the 3rd quarter. Spirepoint Private Client LLC now owns 36,140 shares of the footwear maker's stock worth $2,520,000 after acquiring an additional 153 shares during the period. Diligent Investors LLC boosted its holdings in NIKE by 4.3% in the 4th quarter. Diligent Investors LLC now owns 3,719 shares of the footwear maker's stock worth $237,000 after acquiring an additional 153 shares during the period. Finally, CVA Family Office LLC grew its position in NIKE by 8.0% in the third quarter. CVA Family Office LLC now owns 2,113 shares of the footwear maker's stock valued at $147,000 after acquiring an additional 156 shares in the last quarter. 64.25% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Q3 beat on top and bottom lines: NIKE reported ~$11.28B revenue and $0.35 EPS, topping street estimates and showing some progress from product launches and improved wholesale performance. NIKE Q3 Press Release
• Positive Sentiment: Management says turnaround work is underway (discount control, new product flow, running category strength) — supports medium-term recovery thesis if execution continues. Reuters: Turnaround Progress
• Neutral Sentiment: Analyst reactions mixed: many firms reaffirm buys or neutrals but several cut price targets (Truist, Telsey, BTIG, Guggenheim among adjustments), leaving consensus targets well above current price but with rising uncertainty. Benzinga: Analyst Cuts
• Negative Sentiment: Weak guidance drove the selloff: NIKE guided fiscal Q4 revenue down 2%–4% vs. Wall Street modeling ~+2%, creating an earnings-growth gap and prompting heavy selling. Proactive: Weak Guidance
• Negative Sentiment: Greater China slump: management flagged a significant China sales decline (reported ~20% expected), and multiple outlets highlight that regaining share there will take quarters — a key driver of the negative outlook. WSJ: China Challenges
• Negative Sentiment: Margin and cash-flow pressure: gross/operating profit declined year-over-year (tariff-driven costs, promotional activity, inventory clean-up), and management says margin recovery will be gradual — squeezing near-term earnings power. Zacks: Margin Pressures
• Negative Sentiment: Broader risk drivers: analyst downgrades/price-target cuts and geopolitical headwinds (Middle East tensions) add short-term downside risk to sentiment and valuation multiple. Reuters: Geopolitical Risks

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).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.