NIKE (NYSE:NKE) Raised to "Strong-Buy" at Argus

Key Points

• Argus upgraded NIKE to “strong-buy”, even as other analysts remain more cautious. MarketBeat notes the overall consensus still sits at “Hold,” with an average price target of $54.80.
• NIKE’s latest quarterly results beat expectations, posting EPS of $0.20 versus $0.11 expected and revenue of $10.97 billion versus $10.85 billion expected. However, revenue still declined 1.1% year over year.
• Shares were trading around $44.49, well below the stock’s 52-week high of $80.17 and closer to its 52-week low of $40.00. The article also notes a recent insider sale by EVP Philip Mccartney under a pre-arranged trading plan.

NIKE (NYSE:NKE - Get Free Report) was upgraded by research analysts at Argus to a "strong-buy" rating in a research note issued to investors on Wednesday,Zacks.com reports.

A number of other research analysts also recently weighed in on NKE. HSBC downgraded shares of NIKE from a "buy" rating to a "hold" rating and cut their price target for the company from $90.00 to $48.00 in a report on Monday, April 13th. Jefferies Financial Group decreased their price objective on shares of NIKE from $90.00 to $75.00 and set a "buy" rating for the company in a report on Wednesday, July 1st. CICC Research downgraded shares of NIKE from an "outperform" rating to a "market perform" rating and lowered their target price for the stock from $69.00 to $58.00 in a research report on Monday, April 6th. Guggenheim restated a "buy" rating and set a $60.00 target price (down from $74.00) on shares of NIKE in a report on Wednesday, July 1st. Finally, DA Davidson cut NIKE from a "buy" rating to a "neutral" rating and reduced their price target for the stock from $72.00 to $46.00 in a research report on Thursday, April 2nd. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nineteen have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, NIKE has an average rating of "Hold" and an average price target of $54.80.

NIKE Price Performance

Shares of NKE opened at $44.49 on Wednesday. The firm has a market cap of $65.89 billion, a PE ratio of 21.29, a PEG ratio of 2.47 and a beta of 1.12. The firm's 50 day moving average price is $43.68 and its 200 day moving average price is $51.91. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. NIKE has a twelve month low of $40.00 and a twelve month high of $80.17.

NIKE (NYSE:NKE - Get Free Report) last posted its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. The firm had revenue of $10.97 billion during the quarter, compared to analysts' expectations of $10.85 billion. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The company's revenue was down 1.1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.14 earnings per share. As a group, research analysts expect that NIKE will post 1.76 EPS for the current fiscal year.

Insider Buying and Selling at NIKE

In other news, EVP Philip Mccartney sold 17,398 shares of the 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 completion of the sale, the executive vice president directly owned 53,133 shares of the company's stock, valued at approximately $2,453,681.94. This represents a 24.67% decrease in their ownership of the stock. The transaction was disclosed in a legal 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. Corporate insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On NIKE

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Main Street Financial Solutions LLC boosted its holdings in NIKE by 4.2% in the 2nd quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker's stock valued at $244,000 after purchasing an additional 139 shares during the period. Diligent Investors LLC raised its position in shares of NIKE by 4.3% during the fourth quarter. Diligent Investors LLC now owns 3,719 shares of the footwear maker's stock valued at $237,000 after buying an additional 153 shares during the last quarter. Massachusetts Financial Services Co. MA raised its position in shares of NIKE by 4.3% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 3,978 shares of the footwear maker's stock valued at $253,000 after buying an additional 163 shares during the last quarter. Lakeshore Capital Group Inc. lifted its stake in shares of NIKE by 2.9% in the fourth quarter. Lakeshore Capital Group Inc. now owns 5,868 shares of the footwear maker's stock valued at $374,000 after buying an additional 165 shares during the period. Finally, ANB Bank grew its position in NIKE by 0.7% during the fourth quarter. ANB Bank now owns 25,451 shares of the footwear maker's stock worth $1,621,000 after buying an additional 165 shares in the last quarter. Institutional investors own 64.25% of the company's stock.

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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