NIKE (NYSE:NKE) Sets New 1-Year Low - Time to Sell?

Key Points

• NIKE shares hit a new 52-week low, trading as low as $42.09 and only slightly above that at the close, highlighting continued pressure on the stock.
• Recent news is mixed: Sanford C. Bernstein reaffirmed a Buy rating, but several other analysts have cut price targets or downgraded the stock, leaving the consensus at Hold with a $62.04 price target.
• Operationally, NIKE faces competitive and legal challenges as On Holding reports strong momentum and gains share, while NIKE also deals with a customer lawsuit over tariff-related refunds.

NIKE, Inc. (NYSE:NKE - Get Free Report) hit a new 52-week low during trading on Tuesday . The company traded as low as $42.09 and last traded at $42.2170, with a volume of 2942746 shares changing hands. The stock had previously closed at $42.39.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Sanford C. Bernstein reaffirmed its Buy rating on NIKE, which suggests at least some analysts still see upside in the stock despite recent weakness. MarketScreener
• Positive Sentiment: NIKE’s retail reset could eventually support margin recovery if the company succeeds in shifting toward more full-price selling and fewer promotions, a potential long-term positive for earnings. Yahoo Finance
• Neutral Sentiment: Coverage about NIKE’s retail pivot and clearance strategy highlights an ongoing turnaround effort, but the investment impact is still uncertain until sales and margin trends improve. Zacks
• Negative Sentiment: On Holding reported a record quarter, raised guidance, and cited strong momentum in China and apparel, adding to competitive pressure on NIKE in the premium athleticwear market. CNBC
• Negative Sentiment: Reports that On Holding is taking share and facing an “aggressive Nike fightback” underscore the intensity of the competitive battle and may worry investors about NIKE’s growth outlook. Proactive Investors
• Negative Sentiment: NIKE customers have filed a lawsuit seeking tariff-related refunds, which adds legal and reputational risk tied to pricing and tariffs. PYMNTS

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. BNP Paribas Exane dropped their price objective on shares of NIKE from $35.00 to $23.00 and set an "underperform" rating for the company in a research note on Wednesday, April 1st. China Renaissance lowered their price objective on NIKE from $74.60 to $50.30 and set a "hold" rating on the stock in a research note on Thursday, April 2nd. Sanford C. Bernstein restated a "buy" rating on shares of NIKE in a report on Monday. Wall Street Zen lowered NIKE from a "hold" rating to a "sell" rating in a report on Saturday, April 18th. Finally, Deutsche Bank Aktiengesellschaft lowered their price target on shares of NIKE from $54.00 to $51.00 and set a "hold" rating on the stock in a research report on Wednesday, April 1st. Sixteen equities research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $62.04.

NIKE Stock Up 0.1%

The business has a 50 day simple moving average of $49.35 and a 200 day simple moving average of $58.79. The company has a market capitalization of $62.81 billion, a price-to-earnings ratio of 28.04, a PEG ratio of 2.34 and a beta of 1.12. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.14 and a quick ratio of 1.45.

NIKE (NYSE:NKE - Get Free Report) last posted its quarterly earnings data 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 the consensus estimate of $11.23 billion. During the same quarter in the previous year, the business earned $0.54 EPS. The company's quarterly revenue was up .1% compared to the same quarter last year. As a group, equities analysts predict that NIKE, Inc. will post 1.51 earnings per share for the current fiscal year.

NIKE Dividend Announcement

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

Insider Buying and Selling

In other news, CEO Elliott Hill acquired 23,660 shares of the firm's stock in a transaction dated Monday, April 13th. The stock was acquired at an average cost of $42.27 per share, with a total value of $1,000,108.20. Following the transaction, the chief executive officer owned 265,247 shares in the company, valued at approximately $11,211,990.69. This trade represents a 9.79% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Timothy D. Cook purchased 25,000 shares of the business's stock in a transaction on Friday, April 10th. The stock was acquired at an average price of $42.43 per share, for a total transaction of $1,060,750.00. Following the completion of the purchase, the director owned 130,480 shares of the company's stock, valued at $5,536,266.40. This represents a 23.70% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders bought 64,441 shares of company stock valued at $2,734,204. Company insiders own 0.80% of the company's stock.

Institutional Investors Weigh In On NIKE

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Brighton Jones LLC raised its holdings in NIKE by 388.5% during the fourth quarter. Brighton Jones LLC now owns 202,411 shares of the footwear maker's stock worth $15,316,000 after purchasing an additional 160,980 shares in the last quarter. Caxton Associates LLP purchased a new position in shares of NIKE in the 1st quarter valued at $311,000. United Bank raised its stake in NIKE by 11.3% during the 2nd quarter. United Bank now owns 17,067 shares of the footwear maker's stock worth $1,212,000 after acquiring an additional 1,736 shares in the last quarter. NewEdge Advisors LLC boosted its stake in NIKE by 0.3% in the second quarter. NewEdge Advisors LLC now owns 64,161 shares of the footwear maker's stock valued at $4,558,000 after acquiring an additional 197 shares in the last quarter. Finally, CIBC Asset Management Inc grew its holdings in shares of NIKE by 6.5% during the second quarter. CIBC Asset Management Inc now owns 191,268 shares of the footwear maker's stock worth $13,588,000 after purchasing an additional 11,646 shares during the last quarter. Institutional investors and hedge funds 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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