NIKE (NYSE:NKE) Stock Rating Lowered by HSBC

Key Points

• HSBC downgraded NIKE from "buy" to "hold" with a $48 price target (about a 12.7% upside), while overall analyst sentiment has softened—consensus rating is "Hold" with an average target of $62.34 after multiple firms cut targets.
• NIKE shares are trading near their 52‑week low (~$42.6) despite a modest quarterly beat (EPS $0.35 vs. $0.29 and revenue $11.28B), reflecting market pressure rather than a dramatic earnings shortfall.
• Insider purchases were reported: directors John W. Rogers Jr. and Robert Holmes Swan bought shares in April, increasing their holdings, which may signal executive confidence amid the stock slump.

NIKE (NYSE:NKE - Get Free Report) was downgraded by investment analysts at HSBC from a "buy" rating to a "hold" rating in a report issued on Monday. They presently have a $48.00 price objective on the footwear maker's stock. HSBC's price target indicates a potential upside of 12.69% from the stock's previous close.

A number of other research analysts have also recently commented on the company. Evercore reduced their target price on NIKE from $69.00 to $57.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 1st. Citigroup reduced their target price on NIKE from $65.00 to $53.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 1st. Piper Sandler reissued a "neutral" rating and issued a $50.00 target price (down from $60.00) on shares of NIKE in a research note on Friday. Guggenheim reduced their target price on NIKE from $77.00 to $74.00 and set a "buy" rating on the stock in a research note on Wednesday, April 1st. Finally, Oppenheimer reaffirmed an "outperform" rating on shares of NIKE in a research note on Wednesday, December 17th. 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 company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $62.34.

NIKE Trading Down 0.1%

Shares of NKE stock opened at $42.59 on Monday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.45 and a current ratio of 2.14. NIKE has a 52-week low of $42.36 and a 52-week high of $80.17. The company has a market capitalization of $63.06 billion, a PE ratio of 28.21, a price-to-earnings-growth ratio of 2.25 and a beta of 1.31. The business's fifty day moving average is $56.46 and its 200 day moving average is $62.07.

NIKE (NYSE:NKE - Get Free Report) last released its earnings results on Tuesday, March 31st. The footwear maker reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.29 by $0.06. The business had revenue of $11.28 billion for the quarter, compared to analysts' expectations of $11.23 billion. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The firm's revenue was up .1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.54 earnings per share. On average, equities research analysts anticipate that NIKE will post 2.05 EPS for the current fiscal year.

Insider Transactions at NIKE

In other NIKE news, Director John W. Rogers, Jr. purchased 4,000 shares of NIKE stock in a transaction that occurred on Thursday, April 9th. The shares were bought at an average price of $43.34 per share, for a total transaction of $173,360.00. Following the acquisition, the director directly owned 41,022 shares in the company, valued at approximately $1,777,893.48. This trade represents a 10.80% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Robert Holmes Swan purchased 11,781 shares of NIKE stock in a transaction that occurred on Tuesday, April 7th. The shares were acquired at an average price of $42.44 per share, for a total transaction of $499,985.64. Following the acquisition, the director 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. 0.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of NKE. Brighton Jones LLC increased its holdings in NIKE by 388.5% during the 4th quarter. Brighton Jones LLC now owns 202,411 shares of the footwear maker's stock valued at $15,316,000 after purchasing an additional 160,980 shares during the period. Caxton Associates LLP bought a new stake in NIKE during the 1st quarter valued at approximately $311,000. United Bank boosted its position in NIKE by 11.3% during the 2nd quarter. United Bank now owns 17,067 shares of the footwear maker's stock valued at $1,212,000 after acquiring an additional 1,736 shares in the last quarter. NewEdge Advisors LLC boosted its position in NIKE by 0.3% during the 2nd 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 boosted its position in NIKE by 6.5% during the 2nd quarter. CIBC Asset Management Inc now owns 191,268 shares of the footwear maker's stock valued at $13,588,000 after acquiring an additional 11,646 shares in the last quarter. 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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