NIKE (NYSE:NKE) Shares Down 2.6% - Should You Sell?

Key Points

• NIKE shares fell 2.6% to about $37.32 amid a broader athletic-apparel selloff, with digital sales slowing, weak Greater China direct-to-consumer performance and declining revenue weighing on the outlook.
• Analyst views are sharply divided: Guggenheim, BTIG and Barclays see recovery potential with $45–$50 targets, while Wolfe Research assigned an underperform rating with a $28 target. Overall, the consensus rating is “Reduce,” with a $40.93 target price.
• NIKE beat quarterly EPS expectations, reporting $0.48 versus $0.43, but revenue fell 4.3% year over year to $11.21 billion. The company continues to offer a 4.4% dividend yield, though its recovery remains dependent on the brand reset and rebuilding wholesale relationships.

NIKE, Inc. (NYSE:NKE - Get Free Report) shares traded down 2.6% during trading on Friday. The stock traded as low as $37.30 and last traded at $37.3150. Approximately 25,499,093 shares changed hands during mid-day trading, an increase of 3% from the average session volume of 24,770,059 shares. The stock had previously closed at $38.32.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Guggenheim and BTIG Research reaffirmed buy ratings with $50 price targets, while Barclays raised its target to $45 and said the shares may be near a bottom. These calls suggest some analysts see substantial recovery potential. Guggenheim rating Barclays price target
• Positive Sentiment: Recent quarterly results included earnings of $0.48 per share, ahead of the $0.43 consensus estimate. Investors have also shown some optimism that Nike’s brand reset and rebuilding of wholesale relationships could support a longer-term recovery. Nike earnings beat
• Positive Sentiment: Nike plans to bring back a popular retro lifestyle shoe next year, providing a potential product and brand-engagement catalyst. Retro shoe announcement
• Neutral Sentiment: Analyst opinion remains divided. UBS reiterated a neutral rating based on the expected pace of earnings recovery, contrasting with the more bullish $45–$50 targets from other firms. UBS rating
• Negative Sentiment: Wolfe Research initiated coverage with an underperform rating and a $28 price target, implying considerable downside from recent levels. Wolfe Research rating
• Negative Sentiment: A sector-wide retail selloff is hitting athletic-apparel companies particularly hard, with Nike declining alongside Lululemon and Under Armour. This indicates broader risk-off pressure rather than a Nike-only issue. Athletic apparel selloff
• Negative Sentiment: Digital sales have slowed, direct-to-consumer performance in Greater China remains weak, and marketplace restructuring is weighing on near-term results. Nike is still reporting declining revenue and expects continued challenges in fiscal 2027. Nike digital sales slowdown

Analysts Set New Price Targets

Several research firms have issued reports on NKE. Rothschild & Co Redburn decreased their price objective on shares of NIKE from $45.00 to $37.00 and set a "sell" rating on the stock in a report on Friday, July 17th. Royal Bank Of Canada decreased their target price on shares of NIKE from $45.00 to $40.00 and set a "sector perform" rating on the stock in a report on Tuesday, September 29th. Needham & Company LLC reiterated a "hold" rating on shares of NIKE in a research report on Friday, October 2nd. Robert W. Baird lowered their price objective on shares of NIKE from $44.00 to $36.00 and set a "neutral" rating for the company in a research note on Friday, October 2nd. Finally, Freedom Broker upgraded shares of NIKE from a "hold" rating to a "buy" rating and lowered their price target for the stock from $54.00 to $51.00 in a report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twenty-one have assigned a Hold rating and eleven have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $40.93.

NIKE Stock Down 2.6%

The business's fifty day moving average price is $37.19 and its 200 day moving average price is $41.31. The company has a quick ratio of 1.39, a current ratio of 2.07 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $55.42 billion, a PE ratio of 17.94, a PEG ratio of 4.40 and a beta of 1.09.

NIKE (NYSE:NKE - Get Free Report) last issued its quarterly earnings results on Thursday, October 1st. The footwear maker reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.05. The firm had revenue of $11.21 billion for the quarter, compared to analysts' expectations of $11.32 billion. NIKE had a return on equity of 15.94% and a net margin of 6.74%. The firm's revenue for the quarter was down 4.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.49 EPS. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. On average, equities research analysts forecast that NIKE, Inc. will post 1.22 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st were paid a dividend of $0.41 per share. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.4%. NIKE's dividend payout ratio is 78.85%.

Insider Activity at NIKE

In other NIKE news, COO Venkatesh Alagirisamy sold 3,671 shares of the stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $137,992.89. Following the completion of the transaction, the chief operating officer directly owned 104,862 shares of the company's stock, valued at approximately $3,941,762.58. This trade represents a 3.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Philip McCartney sold 2,559 shares of the business's stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $96,192.81. Following the sale, the executive vice president directly owned 78,121 shares in the company, valued at $2,936,568.39. This trade represents a 3.17% 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. Insiders have sold 14,974 shares of company stock worth $600,126 over the last three months. 1.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NIKE

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Grace & White Inc. NY purchased a new stake in NIKE during the third quarter worth $3,243,000. Gibbs Wealth Management boosted its position in shares of NIKE by 8.8% in the 3rd quarter. Gibbs Wealth Management now owns 10,488 shares of the footwear maker's stock worth $371,000 after buying an additional 847 shares in the last quarter. Farmers & Merchants Investments Inc. boosted its position in shares of NIKE by 1.9% in the 3rd quarter. Farmers & Merchants Investments Inc. now owns 212,204 shares of the footwear maker's stock worth $7,512,000 after buying an additional 3,896 shares in the last quarter. Fifth Third Wealth Advisors LLC grew its stake in NIKE by 13.3% in the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 22,886 shares of the footwear maker's stock valued at $810,000 after acquiring an additional 2,684 shares during the last quarter. Finally, Yousif Capital Management LLC increased its holdings in NIKE by 4.2% during the 3rd quarter. Yousif Capital Management LLC now owns 136,111 shares of the footwear maker's stock valued at $4,818,000 after acquiring an additional 5,548 shares in the last quarter. 64.25% of the stock is owned by institutional investors and hedge funds.

NIKE Company Profile

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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