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

Key Points

• NIKE hit a new 52‑week low after Telsey Advisory cut its price target to $55 (from $65); the stock traded as low as $46.62 and was last around $45.86, down roughly 13.5% on the session.
• Fiscal Q3 beat EPS expectations ($0.35 vs. $0.29) with revenue roughly in line, but management said it intentionally cleared excess inventory—compressing current margins—and issued weak near‑term guidance, citing a projected revenue decline and significant China weakness.
• Analysts are mixed: MarketBeat shows a consensus rating of Moderate Buy with a $69.73 target despite several firms trimming price objectives, and NIKE pays a $0.41 quarterly dividend (about a 3.6% yield) with a high payout ratio (~96%).

NIKE, Inc. (NYSE:NKE - Get Free Report)'s share price reached a new 52-week low during trading on Wednesday after Telsey Advisory Group lowered their price target on the stock from $65.00 to $55.00. Telsey Advisory Group currently has a market perform rating on the stock. NIKE traded as low as $46.62 and last traded at $45.8590, with a volume of 5504243 shares. The stock had previously closed at $52.82.

Other equities research analysts have also issued research reports about the stock. Citigroup reiterated a "neutral" rating and set a $65.00 price objective (down from $70.00) on shares of NIKE in a research note on Friday, December 19th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $78.00 target price on shares of NIKE in a report on Thursday, March 5th. Piper Sandler set a $75.00 price target on NIKE and gave the stock an "overweight" rating in a report on Friday, December 19th. Daiwa Securities Group reduced their price objective on NIKE from $75.00 to $61.00 in a research report on Tuesday, December 23rd. Finally, Deutsche Bank Aktiengesellschaft lowered their price objective on NIKE from $67.00 to $54.00 and set a "hold" rating for the company in a research note on Monday, March 23rd. Nineteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $69.73.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Q3 beat on top and bottom lines — EPS of $0.35 and revenue roughly in line with expectations, showing some traction from product resets and discount control. NIKE Inc. Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: Management notes turnaround progress (product innovation, running category strength) and several analysts/shops still maintain buy/overweight views — evidence there remains conviction among some investors and boutiques. Nike third-quarter sales beat estimates
• Neutral Sentiment: Company intentionally cleared excess inventory, which helps future gross-margin recovery but compressed current margins and cash flow in the quarter (a tradeoff investors need to price). Nike Takes 'Intentional' Hit To Clear 'Unhealthy Inventory'
• Negative Sentiment: Weak near‑term guidance: Nike expects revenue to decline in the next quarter (company cited a projected ~20% drop in China sales), extending uncertainty around the pace of the turnaround — the main driver of the stock’s decline. Nike stock tumbles as weakness in China...
• Negative Sentiment: Analysts trimmed targets and reaffirmed cautious/neutral ratings after the call; a number of firms cut forecasts which amplifies selling pressure and lowers near-term upside expectations. These Analysts Cut Their Forecasts On Nike After Q3 Results
• Negative Sentiment: Wider macro & geopolitical risks (tariff/headwind effects, higher oil/pricing pressures, and the Middle East conflict) were flagged as potential additional drags on recovery and supply/cost dynamics. Nike's turnaround put to test as Middle East conflict poses new risks

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Purpose Unlimited Inc. acquired a new stake in NIKE in the fourth quarter worth about $57,000. Cornerstone Planning LLC acquired a new position in shares of NIKE during the fourth quarter valued at approximately $1,431,000. Bank of New Hampshire raised its holdings 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 worth $75,000 after purchasing an additional 1,140 shares in the last quarter. World Investment Advisors lifted its position in NIKE by 1.2% in the fourth quarter. World Investment Advisors now owns 54,578 shares of the footwear maker's stock worth $3,477,000 after purchasing an additional 644 shares during the period. Finally, ARP Global Capital Ltd bought a new position in NIKE during the 4th quarter valued at $4,715,000. Institutional investors own 64.25% of the company's stock.

NIKE Trading Down 13.5%

The company has a current ratio of 2.06, a quick ratio of 1.40 and a debt-to-equity ratio of 0.50. The company has a market capitalization of $67.67 billion, a price-to-earnings ratio of 27.05, a PEG ratio of 2.69 and a beta of 1.27. The firm has a 50-day moving average price of $59.68 and a 200-day moving average price of $63.66.

NIKE (NYSE:NKE - Get Free Report) last released its earnings results on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.29 by $0.06. The firm had revenue of $11.28 billion for the quarter, compared to analyst estimates of $11.23 billion. NIKE had a return on equity of 18.43% and a net margin of 5.43%.NIKE's revenue was up .1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.54 earnings per share. As a group, sell-side analysts predict that NIKE, Inc. will post 2.05 EPS for the current year.

NIKE Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Monday, March 2nd will be issued a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date is Monday, March 2nd. NIKE's dividend payout ratio (DPR) is presently 96.47%.

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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