NIKE (NYSE:NKE) Sets New 1-Year Low After Analyst Downgrade

Key Points

• NIKE stock hit a new 52-week low (traded as low as $42.09) after HSBC downgraded the shares from Buy to Hold and set a $48 price target; analysts are split (17 Buy, 17 Hold, 2 Sell) with an average price target of $62.34.
• Two directors — John W. Rogers Jr. and Robert Holmes Swan — recently bought shares (4,000 at ~$43.34 and 11,781 at ~$42.44, respectively), increasing their insider positions.
• NIKE beat quarterly EPS estimates ($0.35 vs. $0.29) with $11.28B in revenue (+0.1% YoY) and pays a $0.41 quarterly dividend (3.9% yield), though its payout ratio is above 100%.

NIKE, Inc. (NYSE:NKE - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Monday after HSBC downgraded the stock from a buy rating to a hold rating. HSBC now has a $48.00 price target on the stock. NIKE traded as low as $42.09 and last traded at $42.5260, with a volume of 2109125 shares traded. The stock had previously closed at $42.62.

Several other equities analysts have also weighed in on the company. Needham & Company LLC lowered NIKE from a "buy" rating to a "hold" rating in a report on Thursday, January 8th. Piper Sandler restated a "neutral" rating and set a $50.00 target price (down from $60.00) on shares of NIKE in a report on Friday. DZ Bank restated a "buy" rating on shares of NIKE in a report on Thursday, April 2nd. Oppenheimer restated an "outperform" rating on shares of NIKE in a report on Wednesday, December 17th. Finally, China Renaissance cut their target price on NIKE from $74.60 to $50.30 and set a "hold" rating on the stock in a report on Thursday, April 2nd. Seventeen investment analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $62.34.

Insider Transactions at NIKE

In other NIKE news, Director John W. Rogers, Jr. acquired 4,000 shares of the company's stock in a transaction dated Thursday, April 9th. The shares were acquired at an average cost of $43.34 per share, for a total transaction of $173,360.00. Following the completion of the purchase, the director owned 41,022 shares of the company's stock, valued at approximately $1,777,893.48. This trade represents a 10.80% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Robert Holmes Swan acquired 11,781 shares of the company's stock in a transaction dated 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 purchase, the director directly owned 55,074 shares of the company's stock, valued at $2,337,340.56. This trade represents a 27.21% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On NIKE

A number of institutional investors have recently made changes to their positions in the business. Purpose Unlimited Inc. bought a new position in shares of NIKE in the fourth quarter worth about $57,000. Cornerstone Planning LLC bought a new position in NIKE during the fourth quarter valued at about $1,431,000. Bank of New Hampshire increased its stake in NIKE by 3,257.1% during the fourth quarter. Bank of New Hampshire now owns 1,175 shares of the footwear maker's stock valued at $75,000 after acquiring an additional 1,140 shares during the period. World Investment Advisors increased its stake in NIKE by 1.2% during the fourth quarter. World Investment Advisors now owns 54,578 shares of the footwear maker's stock valued at $3,477,000 after acquiring an additional 644 shares during the period. Finally, ARP Global Capital Ltd bought a new position in NIKE during the fourth quarter valued at about $4,715,000. 64.25% of the stock is currently owned by institutional investors.

NIKE Stock Down 0.5%

The company has a debt-to-equity ratio of 0.50, a current ratio of 2.14 and a quick ratio of 1.45. The stock has a market capitalization of $62.81 billion, a P/E ratio of 28.14, a price-to-earnings-growth ratio of 2.25 and a beta of 1.31. The firm has a 50 day moving average of $56.46 and a 200-day moving average of $62.07.

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 (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.06. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The firm had revenue of $11.28 billion for the quarter, compared to analyst estimates of $11.23 billion. During the same period in the previous year, the company posted $0.54 earnings per share. The company's quarterly revenue was up .1% compared to the same quarter last year. On average, equities research analysts expect that NIKE, Inc. will post 2.05 earnings per share for the current fiscal year.

NIKE Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Investors of record on Monday, March 2nd were paid a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 3.9%. The ex-dividend date was Monday, March 2nd. NIKE's payout ratio is currently 108.61%.

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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