NIKE (NYSE:NKE) Shares Climb 1.7% - Should You Buy?

Key Points

• NIKE shares rose 1.7% to about $37.84, but the stock remains below its 200-day moving average. The consensus analyst rating is “Reduce,” with an average price target of $41.07.
• Potential positives include a dividend yield of approximately 4.3%, bargain-hunting after the selloff, and expectations that the company’s brand strength could support a recovery.
• Risks remain significant: analysts have repeatedly lowered earnings forecasts, management expects weak sales growth, and fiscal 2027 revenue is projected to decline. Recent quarterly revenue fell 4.3% year over year despite an EPS beat.

NIKE, Inc. (NYSE:NKE - Get Free Report) shares traded up 1.7% during trading on Tuesday. The company traded as high as $38.14 and last traded at $37.8360. Approximately 24,344,466 shares changed hands during mid-day trading, a decline of 2% from the average session volume of 24,772,504 shares. The stock had previously closed at $37.21.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s sharply lower share price has pushed its dividend yield above those of Procter & Gamble and roughly twice that of Coca-Cola, which could attract income-oriented investors. However, the higher yield largely reflects the stock’s decline, and the company’s dividend offers less stability than those consumer-staples peers. Nike dividend yield comparison
• Positive Sentiment: Some analysts argue NIKE shares are undervalued after the selloff, while historical trading patterns suggest the stock could recover in November. These views may be supporting bargain-hunting and helping explain the recent improvement in the shares. Nike potential November recovery
• Neutral Sentiment: Investor debate is centered on whether NIKE’s brand strength and eventual product-development improvement can outweigh the opportunity cost of owning a company whose management does not expect sales to increase soon. Nike buy, hold, or sell analysis
• Negative Sentiment: Zacks Research repeatedly cut its NIKE earnings forecasts and maintained a “Strong Sell” rating. FY2027 EPS was reduced to $1.26 from $1.69, FY2028 to $1.68 from $2.11, and FY2029 to $2.00 from $2.56. Quarterly estimates were also lowered, signaling expectations for a slower and less profitable recovery. Zacks negative Nike earnings forecast
• Negative Sentiment: Fiscal 2027 sales are expected to decline, and management has indicated that growth is unlikely to resume soon. That weak outlook, combined with lackluster product development and the possibility of more attractive investment alternatives, remains the main overhang on NKE. Why Nike stock is falling

Analyst Ratings Changes

A number of equities research analysts have weighed in on NKE shares. HSBC cut their price target on shares of NIKE from $48.00 to $40.00 and set a "hold" rating for the company in a report on Monday, September 28th. Evercore lowered their price objective on shares of NIKE from $46.00 to $28.00 in a research note on Monday, September 28th. China Renaissance lowered their price objective on shares of NIKE from $50.30 to $47.30 and set a "hold" rating on the stock in a research note on Thursday, July 2nd. Wells Fargo & Company set a $30.00 target price on shares of NIKE and gave the stock an "equal weight" rating in a report on Friday, October 2nd. Finally, Jefferies Financial Group set a $60.00 target price on shares of NIKE in a report on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty-one have assigned a Hold rating and ten have given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $41.07.

NIKE Trading Up 1.7%

The company has a market cap of $56.20 billion, a PE ratio of 18.19, a PEG ratio of 4.19 and a beta of 1.09. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.39 and a current ratio of 2.07. The company has a 50 day simple moving average of $37.38 and a two-hundred day simple moving average of $41.45.

NIKE (NYSE:NKE - Get Free Report) last issued its earnings results on Thursday, October 1st. The footwear maker reported $0.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.05. The company had revenue of $11.21 billion during the quarter, compared to analyst estimates of $11.32 billion. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The company's revenue for the quarter was down 4.3% on a year-over-year basis. During the same quarter last year, the business posted $0.49 EPS. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. Sell-side analysts forecast that NIKE, Inc. will post 1.26 EPS for the current year.

NIKE Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st were issued a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 4.3%. The ex-dividend date was Tuesday, September 1st. NIKE's dividend payout ratio (DPR) is 78.85%.

Insider Activity

In other news, CFO Matthew Friend sold 2,463 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total transaction of $102,460.80. Following the transaction, the chief financial officer owned 82,165 shares in the company, valued at approximately $3,418,064. The trade was a 2.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the business's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the transaction, the insider owned 57,436 shares in the company, valued at $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Sankala Group LLC acquired a new position in shares of NIKE in the 4th quarter valued at $26,000. Scarborough Advisors LLC acquired a new stake in shares of NIKE during the 1st quarter valued at about $25,000. Meeder Asset Management Inc. boosted its position in shares of NIKE by 108.4% during the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker's stock valued at $29,000 after acquiring an additional 285 shares in the last quarter. Atlas Wealth LLC bought a new stake in NIKE in the first quarter valued at about $31,000. Finally, SHP Wealth Management bought a new stake in NIKE in the fourth quarter valued at about $41,000. 64.25% of the stock is currently owned by institutional investors and hedge funds.

About NIKE

NIKE, Inc is a global athletic footwear, apparel, equipment and accessories company headquartered near Beaverton, Oregon. The company designs, develops, markets and sells products under the Nike, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE's product portfolio includes athletic and casual footwear, performance and lifestyle apparel, sports equipment, accessories and digital fitness-related offerings. The company distributes its products through company-owned retail stores, digital platforms and wholesale partners, while also operating direct-to-consumer and membership programs.

The company traces its origins to 1964, when Phil Knight and Bill Bowerman founded Blue Ribbon Sports.

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