NIKE (NYSE:NKE) Stock Price Down 2.8% - Time to Sell?

Key Points

• NIKE stock down 2.8% — traded as low as $43.09 and last at $43.17 on heavy volume (~32.7M shares, +69% vs. average), sitting well below its 50‑day ($51.39) and 200‑day ($59.65) moving averages.
• Analysts have trimmed price targets recently and the stock's consensus rating is "Hold" with an average target of $62.34 (17 Buys, 17 Holds, 2 Sells).
• Earnings beat but mixed signals: NIKE reported $0.35 EPS vs. $0.29 expected and $11.28B revenue, pays a $0.41 quarterly dividend (3.8% yield; DPR ~108.6%), and insiders purchased roughly 64,441 shares this quarter.

NIKE, Inc. (NYSE:NKE - Get Free Report)'s stock price was down 2.8% during mid-day trading on Monday . The stock traded as low as $43.09 and last traded at $43.1670. Approximately 32,705,045 shares changed hands during mid-day trading, an increase of 69% from the average daily volume of 19,329,918 shares. The stock had previously closed at $44.40.

Wall Street Analysts Forecast Growth

NKE has been the subject of several analyst reports. Piper Sandler reissued a "neutral" rating and issued a $50.00 price target (down from $60.00) on shares of NIKE in a research note on Friday, April 10th. Williams Trading dropped their price target on shares of NIKE from $80.00 to $57.00 and set a "buy" rating for the company in a research note on Wednesday, April 1st. Deutsche Bank Aktiengesellschaft dropped their price target on shares of NIKE from $54.00 to $51.00 and set a "hold" rating for the company in a research note on Wednesday, April 1st. Evercore dropped their price target on shares of NIKE from $69.00 to $57.00 and set an "outperform" rating for the company in a research note on Wednesday, April 1st. Finally, Citigroup dropped their price target on shares of NIKE from $65.00 to $53.00 and set a "neutral" rating for the company in a research note on Wednesday, April 1st. Seventeen equities research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $62.34.

NIKE Price Performance

The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.45 and a current ratio of 2.14. The stock has a market cap of $63.93 billion, a PE ratio of 28.59, a PEG ratio of 2.36 and a beta of 1.12. The stock's 50-day moving average is $51.39 and its two-hundred day moving average is $59.65.

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 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%. The firm's quarterly revenue was up .1% on a year-over-year basis. During the same quarter last year, the company posted $0.54 EPS. On average, equities analysts predict that NIKE, Inc. will post 1.51 earnings per share for the current year.

NIKE Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Investors of record on Monday, March 2nd were issued a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date was Monday, March 2nd. NIKE's dividend payout ratio (DPR) is 108.61%.

Insider Transactions at NIKE

In other news, Director Timothy D. Cook bought 25,000 shares of the stock in a transaction that occurred on Friday, April 10th. The stock was bought at an average cost of $42.43 per share, for a total transaction of $1,060,750.00. Following the acquisition, the director directly owned 130,480 shares of the company's stock, valued at $5,536,266.40. The trade was a 23.70% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Robert Holmes Swan bought 11,781 shares of the stock in a transaction that occurred on Tuesday, April 7th. The shares were purchased at an average price of $42.44 per share, with a total value of $499,985.64. Following the completion of the acquisition, the director directly owned 55,074 shares in the company, valued at $2,337,340.56. This trade represents a 27.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have purchased 64,441 shares of company stock valued at $2,734,204. Insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On NIKE

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in NIKE by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 116,993,541 shares of the footwear maker's stock valued at $7,453,658,000 after buying an additional 1,702,342 shares during the period. State Street Corp boosted its position in NIKE by 2.2% in the 4th quarter. State Street Corp now owns 59,315,606 shares of the footwear maker's stock valued at $3,802,807,000 after buying an additional 1,275,494 shares during the period. Capital World Investors boosted its position in NIKE by 16.2% in the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock valued at $3,126,246,000 after buying an additional 6,830,938 shares during the period. J. Stern & Co. LLP boosted its position in NIKE by 49,010.4% in the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker's stock valued at $3,061,555,000 after buying an additional 47,956,692 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of NIKE by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker's stock valued at $1,677,251,000 after buying an additional 233,925 shares during the period. Hedge funds and other institutional investors 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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