NIKE (NYSE:NKE) Stock Falls 2.2% Following Analyst Downgrade

Key Points

• NIKE shares fell 2.2% after Truist Financial downgraded the stock from Hold to Sell and set a $29 price target; shares last traded at $39.59 on above-average volume.
• Analyst views remain mixed: MarketBeat reports a consensus rating of “Reduce” and an average price target of $40.93, with 12 Sell and 20 Hold ratings among 40 analysts.
• NIKE beat quarterly earnings expectations, but revenue declined 4.3% year over year; weakness in China and the company’s forecast for lower sales add uncertainty to its recovery.

NIKE, Inc. (NYSE:NKE - Get Free Report)'s stock price traded down 2.2% during trading on Thursday after Truist Financial downgraded the stock from a hold rating to a sell rating. Truist Financial now has a $29.00 price target on the stock. NIKE traded as low as $39.08 and last traded at $39.5870. 28,179,271 shares were traded during mid-day trading, an increase of 14% from the average session volume of 24,691,826 shares. The stock had previously closed at $40.49.

NKE has been the subject of several other reports. Sanford C. Bernstein reiterated an "outperform" rating and issued a $45.00 target price on shares of NIKE in a research report on Friday, October 2nd. Wolfe Research assumed coverage on NIKE in a research report on Wednesday, October 21st. They set an "underperform" rating and a $28.00 price target on the stock. BNP Paribas Exane set a $19.00 price target on NIKE and gave the stock an "underperform" rating in a research note on Friday, October 2nd. Argus upgraded NIKE to a "strong-buy" rating in a report on Wednesday, July 15th. Finally, Guggenheim reiterated a "buy" rating and set a $50.00 price objective on shares of NIKE in a research report on Thursday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty have given a Hold rating and twelve have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $40.93.

Insider Buying and Selling

In other NIKE news, insider Amy Montagne sold 4,867 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $42.05, for a total transaction of $204,657.35. Following the completion of the sale, the insider directly 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. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Philip McCartney sold 2,559 shares of the firm's stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $96,192.81. Following the transaction, 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 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 a total of 11,097 shares of company stock worth $438,843 in the last 90 days. 1.10% of the stock is owned by company insiders.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Nike’s shares have climbed since its latest earnings report, and its restructuring helped expand gross margin despite lower sales. Fresh performance-focused product launches and the “Sport Offense” reset could support a longer-term recovery if they improve full-price sales. Nike vs. Lululemon article Nike product reset article
• Neutral Sentiment: Stifel reiterated a Hold rating ahead of Nike’s Nov. 16–17 investor day, leaving the event as a potential source of updates on the turnaround. Bernstein maintained a $45 price target, though reaching it depends on the company delivering the earnings improvement analysts expect. Stifel rating article Bernstein price target article
• Negative Sentiment: Truist cut its rating from Hold to Sell and set a $29 price target, citing risks across Nike’s portfolio and what it considers an elevated valuation, even after the recent rally. Truist downgrade article
• Negative Sentiment: The recovery remains fragile: Nike expects sales to decline this year, and sales in China fell 25% year over year in its latest reported quarter. That weakness could offset progress from new products and restructuring. Nike outlook and China sales article

Institutional Investors Weigh In On NIKE

Several institutional investors have recently bought and sold shares of the stock. State Street Corp boosted its stake in shares of NIKE by 6.8% during the 2nd quarter. State Street Corp now owns 63,598,789 shares of the footwear maker's stock worth $2,636,104,000 after acquiring an additional 4,052,428 shares during the last quarter. Flossbach Von Storch SE purchased a new stake in shares of NIKE in the 2nd quarter worth $488,714,000. Amundi increased its stake in shares of NIKE by 59.4% in the 2nd quarter. Amundi now owns 6,460,398 shares of the footwear maker's stock worth $265,199,000 after purchasing an additional 2,406,609 shares in the last quarter. Van ECK Associates Corp increased its stake in shares of NIKE by 4.8% in the 2nd quarter. Van ECK Associates Corp now owns 6,257,863 shares of the footwear maker's stock worth $256,885,000 after purchasing an additional 286,395 shares in the last quarter. Finally, Assenagon Asset Management S.A. raised its holdings in NIKE by 92.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 4,789,274 shares of the footwear maker's stock worth $169,540,000 after purchasing an additional 2,298,400 shares during the period. 64.25% of the stock is currently owned by hedge funds and other institutional investors.

NIKE Trading Down 2.2%

The stock has a fifty day moving average of $36.88 and a 200 day moving average of $45.88. The company has a market capitalization of $58.80 billion, a P/E ratio of 19.03, a PEG ratio of 4.49 and a beta of 1.01. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.39 and a current ratio of 2.07.

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

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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