NIKE (NYSE:NKE) Receives "Neutral" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated a “neutral” rating on NIKE, while several other analysts also adjusted views and price targets, leaving the stock with a consensus “Hold” rating and an average target of $56.16.
• NIKE shares rose to $42.52 in Wednesday trading, but the stock remains well below its 52-week high of $80.17 and under its 50-day and 200-day moving averages.
• The company recently beat quarterly earnings and revenue estimates, yet the article highlights ongoing concerns about a slower turnaround, weak demand in regions like China, and multiple brokerage price-target cuts.

NIKE (NYSE:NKE - Get Free Report)'s stock had its "neutral" rating reiterated by equities research analysts at Royal Bank Of Canada in a report issued on Wednesday,MarketScreener reports.

NKE has been the subject of several other research reports. Barclays decreased their target price on shares of NIKE from $67.00 to $52.00 and set an "overweight" rating for the company in a research note on Wednesday. DZ Bank restated a "buy" rating on shares of NIKE in a research note on Tuesday, April 21st. Sanford C. Bernstein set a $72.00 price objective on NIKE in a research report on Wednesday. Telsey Advisory Group set a $47.00 price objective on NIKE and gave the stock a "market perform" rating in a research report on Wednesday. Finally, Wells Fargo & Company reduced their target price on NIKE from $45.00 to $40.00 and set an "equal weight" rating for the company in a report on Wednesday. Fourteen investment analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, NIKE currently has a consensus rating of "Hold" and a consensus price target of $56.16.

NIKE Stock Performance

NKE traded up $1.47 during trading on Wednesday, hitting $42.52. 15,442,622 shares of the stock were exchanged, compared to its average volume of 20,736,977. The firm has a market capitalization of $62.96 billion, a P/E ratio of 27.94, a PEG ratio of 1.81 and a beta of 1.12. NIKE has a 1-year low of $40.00 and a 1-year high of $80.17. The stock has a fifty day moving average price of $44.01 and a two-hundred day moving average price of $53.56. 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 results on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.06. The firm had revenue of $11.28 billion during the quarter, compared to analysts' expectations of $11.23 billion. NIKE had a net margin of 4.84% and a return on equity of 16.41%. NIKE's quarterly revenue was up .1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.54 EPS. As a group, sell-side analysts predict that NIKE will post 1.49 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director John W. Rogers, Jr. purchased 4,000 shares of the business's stock in a transaction dated Thursday, April 9th. The stock was acquired at an average price of $43.34 per share, with a total value of $173,360.00. Following the purchase, the director directly owned 41,022 shares of the company's stock, valued at $1,777,893.48. This represents a 10.80% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Robert Holmes Swan acquired 11,781 shares of the firm's stock in a transaction that occurred on Tuesday, April 7th. The stock was acquired at an average price of $42.44 per share, for a total transaction of $499,985.64. Following the completion of the transaction, the director directly owned 55,074 shares in the company, valued at approximately $2,337,340.56. This represents a 27.21% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have bought 64,441 shares of company stock valued at $2,734,204. Company insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On NIKE

Hedge funds have recently bought and sold shares of the stock. Scarborough Advisors LLC purchased a new stake in shares of NIKE in the first quarter valued at $25,000. Cornerstone Financial Management LLC purchased a new stake in NIKE during the 4th quarter worth about $26,000. Sankala Group LLC acquired a new position in NIKE in the 4th quarter valued at about $26,000. Meeder Asset Management Inc. raised its stake in 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 purchasing an additional 285 shares during the last quarter. Finally, J.Safra Asset Management Corp purchased a new position in NIKE in the 4th quarter valued at about $29,000. Hedge funds and other institutional investors 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

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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