NIKE (NYSE:NKE) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded NIKE from “strong sell” to “hold.” Despite mixed analyst views, NIKE’s consensus rating remains “Hold,” with an average price target of $53.53.
• NIKE shares opened at $40.25, near their one-year low of $38.86 and below both the 50-day and 200-day moving averages. The company’s latest quarterly results exceeded expectations, with EPS of $0.20 and revenue of $10.97 billion, although revenue declined 1.1% year over year.
• Company insiders sold 26,142 shares worth approximately $1.17 million over the past 90 days, while institutional investors own 64.25% of NIKE’s outstanding stock.

NIKE (NYSE:NKE - Get Free Report) was upgraded by stock analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Wednesday,Zacks.com reports.

NKE has been the topic of several other research reports. Argus raised NIKE to a "strong-buy" rating in a research note on Wednesday, July 15th. Oppenheimer reduced their target price on NIKE from $120.00 to $60.00 and set an "outperform" rating on the stock in a research report on Friday, June 26th. Stifel Nicolaus set a $45.00 price target on shares of NIKE and gave the stock a "hold" rating in a research report on Wednesday, July 1st. JPMorgan Chase & Co. restated an "underweight" rating and issued a $40.00 target price (down from $47.00) on shares of NIKE in a research note on Tuesday, August 4th. Finally, Guggenheim reaffirmed a "buy" rating and issued a $60.00 target price (down from $74.00) on shares of NIKE in a research report on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nineteen have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $53.53.

NIKE Stock Down 1.9%

Shares of NKE opened at $40.25 on Wednesday. The company's 50-day simple moving average is $42.55 and its 200-day simple moving average is $47.98. The stock has a market capitalization of $59.71 billion, a PE ratio of 19.26, a P/E/G ratio of 1.82 and a beta of 1.11. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. NIKE has a 1 year low of $38.86 and a 1 year high of $80.17.

NIKE (NYSE:NKE - Get Free Report) last issued its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The firm had revenue of $10.97 billion during the quarter, compared to the consensus estimate of $10.85 billion. During the same quarter in the previous year, the firm posted $0.14 earnings per share. The company's revenue was down 1.1% compared to the same quarter last year. Analysts forecast that NIKE will post 1.74 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Amy Montagne sold 4,867 shares of the business's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $42.05, for a total value of $204,657.35. Following the transaction, the insider directly owned 57,436 shares of the company's stock, valued at $2,415,183.80. The trade was a 7.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Venkatesh Alagirisamy sold 890 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total transaction of $37,024.00. Following the sale, the chief operating officer directly owned 74,820 shares in the company, valued at $3,112,512. This trade represents a 1.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 26,142 shares of company stock worth $1,169,380 in the last 90 days. 1.10% of the stock is owned by company insiders.

Institutional Trading of NIKE

Institutional investors and hedge funds have recently modified their holdings of the stock. J. Stern & Co. LLP grew its holdings in shares of 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 acquiring an additional 47,956,692 shares in the last quarter. Norges Bank acquired a new position in shares of NIKE in the fourth quarter valued at approximately $829,956,000. Flossbach Von Storch SE acquired a new position in shares of NIKE in the second quarter valued at about $488,714,000. Harris Associates L P acquired a new stake in NIKE during the second quarter worth approximately $621,525,000. Finally, Capital World Investors increased its position in shares of NIKE by 16.2% in the fourth quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker's stock worth $3,126,246,000 after purchasing an additional 6,830,938 shares during the period. 64.25% of the stock is owned by institutional investors.

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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