NIKE (NYSE:NKE) Reaches New 52-Week Low - Here's Why

Key Points

• NIKE shares hit a new 52-week low on Monday, trading as low as $41.35 before finishing near $42.25, extending pressure on the stock.
• Analysts have been trimming price targets, with several firms cutting estimates even as the overall consensus remains a “Hold” and the average target price sits at $62.04.
• Recent earnings were better than expected: NIKE reported $0.35 EPS versus $0.29 expected and revenue of $11.28 billion, while the company also announced a $0.41 quarterly dividend yielding 3.9%.

NIKE, Inc. (NYSE:NKE - Get Free Report)'s share price hit a new 52-week low during trading on Monday . The stock traded as low as $41.35 and last traded at $42.2450, with a volume of 1740829 shares trading hands. The stock had previously closed at $41.88.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on NKE. UBS Group decreased their target price on NIKE from $58.00 to $54.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 1st. Barclays decreased their target price on NIKE from $73.00 to $67.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 1st. KeyCorp decreased their target price on NIKE from $90.00 to $75.00 and set an "overweight" rating on the stock in a research note on Thursday, January 22nd. Sanford C. Bernstein reissued a "buy" rating on shares of NIKE in a research note on Monday, May 11th. Finally, Robert W. Baird decreased their target price on NIKE from $85.00 to $70.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 1st. Sixteen research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $62.04.

NIKE Trading Up 0.6%

The firm has a market cap of $62.37 billion, a PE ratio of 27.92, a P/E/G ratio of 2.22 and a beta of 1.12. The company has a current ratio of 2.14, a quick ratio of 1.45 and a debt-to-equity ratio of 0.50. The business has a fifty day moving average price of $47.89 and a 200 day moving average price of $58.03.

NIKE (NYSE:NKE - Get Free Report) last released its quarterly earnings data on Tuesday, March 31st. The footwear maker reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.29 by $0.06. The business had revenue of $11.28 billion for the quarter, compared to the consensus estimate of $11.23 billion. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The business's revenue for the quarter was up .1% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.54 EPS. Analysts forecast that NIKE, Inc. will post 1.51 EPS for the current year.

NIKE Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Monday, June 1st will be paid a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a yield of 3.9%. The ex-dividend date is Monday, June 1st. NIKE's dividend payout ratio (DPR) is currently 108.61%.

Insider Transactions at NIKE

In other news, Director Robert Holmes Swan purchased 11,781 shares of the company's stock in a transaction that occurred on Tuesday, April 7th. The shares were purchased at an average price of $42.44 per share, for a total transaction of $499,985.64. Following the purchase, the director directly owned 55,074 shares of the company's stock, valued at $2,337,340.56. This represents a 27.21% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John W. Rogers, Jr. purchased 4,000 shares of the company's stock in a transaction that occurred on Thursday, April 9th. The shares were purchased at an average price of $43.34 per share, for a total transaction of $173,360.00. Following the purchase, the director directly owned 41,022 shares in the company, valued at $1,777,893.48. The trade was a 10.80% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have bought 64,441 shares of company stock worth $2,734,204. 0.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Scarborough Advisors LLC acquired a new stake in NIKE during the 1st quarter worth approximately $25,000. Cornerstone Financial Management LLC acquired a new stake in NIKE during the 4th quarter worth approximately $26,000. Sankala Group LLC acquired a new stake in NIKE during the 4th quarter worth approximately $26,000. Meeder Asset Management Inc. lifted its position in NIKE by 108.4% during the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock worth $29,000 after acquiring an additional 285 shares during the period. Finally, J.Safra Asset Management Corp acquired a new stake in NIKE during the 4th quarter worth approximately $29,000. Hedge funds and other institutional investors own 64.25% of the company's stock.

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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