NIKE (NYSE:NKE) Shares Gap Up - Here's What Happened

Key Points

• NIKE's stock experienced a significant jump, opening at $79.00 after closing at $76.27, with a trading volume of 6,926,462 shares.
• Analysts are mixed on NIKE, with price targets ranging from $55.00 to $97.00, and a consensus rating of "Moderate Buy" and an average price target of $78.22.
• NIKE's recent earnings report showed an EPS of $0.14, exceeding expectations, but revenue decreased 11.9% year-over-year.

NIKE, Inc. (NYSE:NKE - Get Free Report) shares gapped up prior to trading on Monday . The stock had previously closed at $76.27, but opened at $79.00. NIKE shares last traded at $79.19, with a volume of 6,926,462 shares trading hands.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on NKE. Williams Trading cut their price target on shares of NIKE from $93.00 to $73.00 and set a "buy" rating for the company in a report on Monday, April 21st. Evercore ISI cut their price target on shares of NIKE from $97.00 to $75.00 and set an "outperform" rating for the company in a report on Tuesday, June 24th. Wells Fargo & Company increased their price target on shares of NIKE from $55.00 to $60.00 and gave the company an "equal weight" rating in a report on Wednesday, May 14th. Berenberg Bank initiated coverage on shares of NIKE in a report on Tuesday, April 15th. They set a "hold" rating and a $58.00 target price for the company. Finally, Jefferies Financial Group restated a "buy" rating on shares of NIKE in a report on Friday, May 23rd. One analyst has rated the stock with a sell rating, twelve have issued a hold rating, seventeen have given a buy rating and three have assigned a strong buy rating to the company's stock. Based on data from MarketBeat, NIKE presently has a consensus rating of "Moderate Buy" and an average price target of $78.22.

NIKE Stock Up 4.0%

The stock has a market cap of $117.10 billion, a P/E ratio of 36.68, a PEG ratio of 2.80 and a beta of 1.25. The company has a quick ratio of 1.50, a current ratio of 2.21 and a debt-to-equity ratio of 0.60. The business has a 50-day simple moving average of $66.81 and a 200-day simple moving average of $67.29.

NIKE (NYSE:NKE - Get Free Report) last announced its earnings results on Thursday, June 26th. The footwear maker reported $0.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.12 by $0.02. The firm had revenue of $11.10 billion during the quarter, compared to analysts' expectations of $10.69 billion. NIKE had a return on equity of 23.33% and a net margin of 6.95%. The company's revenue was down 11.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.99 earnings per share. Analysts expect that NIKE, Inc. will post 2.05 EPS for the current year.

NIKE Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 1st. Investors of record on Monday, June 2nd were given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 2.02%. The ex-dividend date was Monday, June 2nd. NIKE's dividend payout ratio (DPR) is currently 74.07%.

Insider Transactions at NIKE

In related news, Chairman Mark G. Parker sold 110,000 shares of the business's stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $72.29, for a total transaction of $7,951,900.00. Following the transaction, the chairman owned 842,361 shares of the company's stock, valued at approximately $60,894,276.69. The trade was a 11.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in NIKE by 4.6% during the first quarter. Vanguard Group Inc. now owns 113,151,080 shares of the footwear maker's stock worth $7,182,831,000 after acquiring an additional 4,957,494 shares in the last quarter. Wellington Management Group LLP raised its stake in NIKE by 24.9% during the first quarter. Wellington Management Group LLP now owns 45,383,916 shares of the footwear maker's stock worth $2,880,971,000 after acquiring an additional 9,043,180 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in NIKE by 344.2% during the first quarter. Goldman Sachs Group Inc. now owns 26,698,835 shares of the footwear maker's stock worth $1,694,842,000 after acquiring an additional 20,688,013 shares in the last quarter. Geode Capital Management LLC raised its stake in NIKE by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 25,376,558 shares of the footwear maker's stock worth $1,915,110,000 after acquiring an additional 347,178 shares in the last quarter. Finally, Capital World Investors raised its stake in NIKE by 10.3% during the fourth quarter. Capital World Investors now owns 24,545,937 shares of the footwear maker's stock worth $1,857,389,000 after acquiring an additional 2,288,627 shares in the last quarter. 64.25% of the stock is owned by institutional investors.

About NIKE

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.

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