NIKE's (NKE) Neutral Rating Reaffirmed at UBS Group

Key Points

• UBS Group reaffirmed NIKE’s neutral rating, even as other analysts remained mixed on the stock. The broader consensus on MarketBeat still shows a “Hold” average rating with an average target price of $56.16.
• Several firms cut their price targets on NIKE after recent developments, including Jefferies and Guggenheim, signaling more cautious expectations despite some buy ratings remaining in place.
• NIKE shares were trading near the low end of their range at $42.52, far below the 52-week high of $80.17. The company’s recent earnings beat estimates, but sales growth was weak and investors remain focused on turnaround progress.

NIKE (NYSE:NKE - Get Free Report)'s stock had its "neutral" rating reissued by investment analysts at UBS Group in a report released on Wednesday,MarketScreener reports.

A number of other research firms also recently issued reports on NKE. Jefferies Financial Group reduced their price target on shares of NIKE from $90.00 to $75.00 and set a "buy" rating for the company in a research report on Wednesday. Guggenheim reiterated a "buy" rating and set a $60.00 target price (down from $74.00) on shares of NIKE in a report on Wednesday. DZ Bank restated a "buy" rating on shares of NIKE in a report on Tuesday, April 21st. Weiss Ratings lowered shares of NIKE from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, June 8th. Finally, Telsey Advisory Group set a $47.00 price target on shares of NIKE and gave the company a "market perform" rating in a report on Wednesday. Fourteen equities research analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $56.16.

NIKE Price Performance

Shares of NYSE NKE traded up $1.47 during mid-day trading on Wednesday, reaching $42.52. The company's stock had a trading volume of 15,442,622 shares, compared to its average volume of 20,736,977. NIKE has a 1-year low of $40.00 and a 1-year high of $80.17. The stock has a market capitalization of $62.96 billion, a P/E ratio of 27.94, a P/E/G ratio of 1.81 and a beta of 1.12. The stock has a 50-day moving average of $44.01 and a two-hundred day moving average of $53.56. 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 (NYSE:NKE - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share for the quarter, topping 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 company had revenue of $11.28 billion for the quarter, compared to the consensus estimate of $11.23 billion. During the same quarter in the prior year, the business earned $0.54 EPS. NIKE's revenue was up .1% on a year-over-year basis. On average, equities research analysts anticipate that NIKE will post 1.49 EPS for the current fiscal year.

Insider Buying and Selling at NIKE

In other news, EVP Philip Mccartney sold 17,398 shares of the firm's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $46.18, for a total value of $803,439.64. Following the completion of the sale, the executive vice president owned 53,133 shares in the company, valued at approximately $2,453,681.94. This trade represents a 24.67% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director John W. Rogers, Jr. acquired 4,000 shares of the business's stock in a transaction on Thursday, April 9th. The stock was acquired at an average cost of $43.34 per share, for a total transaction of $173,360.00. Following the transaction, the director directly owned 41,022 shares in the company, valued at $1,777,893.48. The trade was a 10.80% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought 64,441 shares of company stock valued at $2,734,204 in the last quarter. Insiders own 0.80% of the company's stock.

Institutional Trading of NIKE

Several institutional investors and hedge funds have recently made changes to their positions in the company. J. Stern & Co. LLP lifted its position in shares of NIKE by 49,010.4% during the fourth 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 last quarter. Norges Bank purchased a new stake in NIKE in the fourth quarter valued at about $829,956,000. Harris Associates L P acquired a new stake in NIKE in the 2nd quarter worth approximately $621,525,000. Capital World Investors increased its position in shares of 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 acquiring an additional 6,830,938 shares during the period. Finally, Jasper Ridge Partners L.P. boosted its position in NIKE by 2,492.4% in the fourth quarter. Jasper Ridge Partners L.P. now owns 4,883,229 shares of the footwear maker's stock valued at $311,111,000 after buying an additional 4,694,859 shares during the last quarter. 64.25% of the stock is currently owned by institutional investors.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE beat Wall Street’s Q4 EPS and revenue estimates, with higher gross and operating profit helped by better margins and a tariff refund. Article Title
• Positive Sentiment: Several analysts still see upside from current levels, including BTIG’s reiterated Buy and Barclays’ Overweight rating, even after multiple price-target cuts. Article Title
• Neutral Sentiment: Management is prioritizing margin recovery, inventory discipline, and sport-led execution, which may help the medium-term turnaround but does not change the near-term sales slowdown. Article Title
• Negative Sentiment: China remains a major headwind, with sales there down about 12%, and broader demand remains weak in key regions such as Greater China and Europe. Article Title
• Negative Sentiment: NIKE lowered investor expectations with a cautious outlook, saying the turnaround is taking longer and warning that sales are still struggling, which is driving the stock lower in premarket trading. Article Title
• Negative Sentiment: Multiple brokerages cut price targets after the report, including JPMorgan, Piper Sandler, Bank of America, Barclays, and Wells Fargo, reinforcing caution around the stock. Article Title

NIKE Company Profile

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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