NIKE (NYSE:NKE) Reaches New 12-Month Low - Should You Sell?

Key Points

• NIKE shares hit a new 52-week low of $37.94, reflecting ongoing concerns about weak sportswear demand, discounting, competitive pressure, inventory cleanup and softness in China and EMEA.
• Analysts have mostly reduced price targets, with the consensus rating at “Hold” and an average target of $52.94. Some see substantial recovery potential if management restores growth, supported by improving categories in China and new products.
• NIKE continues to offer a quarterly dividend of $0.41, or $1.64 annually, yielding about 4.3%; however, the investment case depends on converting its brand strength and product pipeline into renewed revenue and earnings growth.

NIKE, Inc. (NYSE:NKE - Get Free Report) reached a new 52-week low on Tuesday . The company traded as low as $37.94 and last traded at $37.9560, with a volume of 21677463 shares trading hands. The stock had previously closed at $38.40.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Some analysts see significant upside from current levels, with one view suggesting the shares could nearly double if management successfully restores growth. The reported median analyst price target is $47.50, above the recent trading range. Nike Is In Free Fall: This Wall Street Ratings Agency Says It's Doubling Soon
• Positive Sentiment: Running, football and premium retail are showing early signs of traction in China, while new products could support a longer-term recovery. Several insiders, including CEO Elliott Hill, have also purchased shares, signaling confidence in the turnaround. NIKE's China Business: Recovery Story or Ongoing Challenge?
• Neutral Sentiment: NIKE’s dividend continues to attract income-oriented investors, but the investment case depends on whether the company can translate its brand strength and product pipeline into renewed sales and earnings growth. How much to invest in Nike stock to earn $1,000 in annual dividends
• Negative Sentiment: S&P Dow Jones Indices will remove NIKE from the S&P 100 effective September 21, ending an 18-year membership. The change highlights the company’s sharply reduced market value and could weigh on sentiment and index-related demand. Nike to lose S&P 100 place as stock sinks
• Negative Sentiment: Sportswear weakness, discounting and competitive pressure remain concerns. China and EMEA sales are under pressure, inventory is still being cleaned up, and elevated prices on basic apparel may be alienating consumers. NIKE Near 52-Week Low: Should Investors Buy or Stay Cautious?
• Negative Sentiment: A public campaign challenging Nike’s policies concerning gender-transition surgeries for minors introduces an additional reputational and potential consumer-polarization risk, although its direct financial impact is uncertain. Former college soccer player takes on Nike over gender-transition surgeries for minors

Analyst Upgrades and Downgrades

Several research firms recently commented on NKE. Citigroup reaffirmed a "neutral" rating on shares of NIKE in a report on Wednesday, July 22nd. Oppenheimer lowered their price objective on NIKE from $120.00 to $60.00 and set an "outperform" rating on the stock in a research report on Friday, June 26th. Barclays lowered their price objective on NIKE from $67.00 to $52.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 1st. CICC Research cut their target price on shares of NIKE from $58.00 to $44.80 and set a "neutral" rating for the company in a report on Thursday, July 2nd. Finally, Truist Financial set a $42.00 price objective on shares of NIKE and gave the stock a "hold" rating in a research report on Wednesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $52.94.

NIKE Trading Down 0.9%

The company's fifty day simple moving average is $41.52 and its 200-day simple moving average is $45.98. The firm has a market capitalization of $56.43 billion, a PE ratio of 18.19, a P/E/G ratio of 1.88 and a beta of 1.10. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36.

NIKE (NYSE:NKE - Get Free Report) last released 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. The business had revenue of $10.97 billion during the quarter, compared to analysts' expectations of $10.85 billion. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The company's quarterly revenue was down 1.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.14 earnings per share. As a group, sell-side analysts expect that NIKE, Inc. will post 1.74 earnings per share for the current fiscal year.

NIKE Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be given a $0.41 dividend. This represents a $1.64 annualized dividend and a dividend yield of 4.3%. The ex-dividend date is Tuesday, September 1st. NIKE's dividend payout ratio (DPR) is 78.47%.

Insider Transactions at NIKE

In related news, CFO Matthew Friend sold 2,463 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the completion of the transaction, the chief financial officer directly owned 82,165 shares of the company's stock, valued at approximately $3,418,064. This represents a 2.91% decrease in their position. The transaction was disclosed in a document filed 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. Also, COO Venkatesh Alagirisamy sold 890 shares of NIKE stock in a transaction on Wednesday, August 5th. The stock was 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 approximately $3,112,512. This trade represents a 1.18% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 26,142 shares of company stock valued at $1,169,380. Insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On NIKE

Hedge funds and other institutional investors have recently bought and sold shares of the company. Scarborough Advisors LLC purchased a new stake in NIKE in the 1st quarter valued at about $25,000. Cornerstone Financial Management LLC acquired a new position in NIKE during the 4th quarter worth $26,000. Sankala Group LLC acquired a new stake in NIKE in the 4th quarter valued at about $26,000. Meeder Asset Management Inc. grew its holdings in NIKE by 108.4% during the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock worth $29,000 after acquiring an additional 285 shares in the last quarter. Finally, J.Safra Asset Management Corp purchased a new position in NIKE in the fourth quarter valued at $29,000. 64.25% of the stock is currently owned by institutional investors and hedge funds.

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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