NIKE (NYSE:NKE) Stock Jumps 1.1% - Should You Buy?

Key Points

• NIKE shares rose 1.1% to about $39.11, but remain below the 200-day moving average of $46.27. Analysts are cautious, with a consensus “Reduce” rating and a $40.93 price target.
• The latest quarter was mixed: EPS of $0.48 exceeded estimates of $0.43, while revenue of $11.21 billion missed expectations and fell 4.3% year over year.
• NIKE offers a quarterly dividend of $0.41 per share, or $1.64 annually, yielding approximately 4.2%; however, the 78.85% payout ratio and recent insider selling may warrant consideration.

Shares of NIKE, Inc. (NYSE:NKE - Get Free Report) rose 1.1% during mid-day trading on Monday. The company traded as high as $39.57 and last traded at $39.1070. 22,913,892 shares changed hands during mid-day trading, a decline of 7% from the average daily volume of 24,681,203 shares. The stock had previously closed at $38.67.

Analysts Set New Price Targets

Several brokerages have issued reports on NKE. Telsey Advisory Group set a $35.00 target price on NIKE and gave the company a "market perform" rating in a report on Friday, October 2nd. Wall Street Zen cut shares of NIKE from a "hold" rating to a "sell" rating in a research report on Saturday, October 3rd. Wells Fargo & Company set a $30.00 price target on shares of NIKE and gave the company an "equal weight" rating in a research report on Friday, October 2nd. Benchmark raised shares of NIKE to a "hold" rating in a research note on Tuesday, September 22nd. Finally, Zacks Research cut shares of NIKE from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 1st. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twenty-one have issued a Hold rating and eleven have assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $40.93.

NIKE Price Performance

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 stock's 50-day moving average is $36.94 and its two-hundred day moving average is $46.27. The stock has a market cap of $58.09 billion, a PE ratio of 18.80, a PEG ratio of 4.52 and a beta of 1.01.

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

NIKE Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st were paid a dividend of $0.41 per share. The ex-dividend date was Tuesday, September 1st. This represents a $1.64 dividend on an annualized basis and a yield of 4.2%. NIKE's dividend payout ratio is 78.85%.

Insider Buying and Selling at NIKE

In other NIKE news, CFO Matthew Friend sold 2,463 shares of NIKE stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total transaction of $102,460.80. Following the completion of the sale, the chief financial officer directly owned 82,165 shares of the company's stock, valued at $3,418,064. The trade was a 2.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Venkatesh Alagirisamy sold 3,671 shares of the firm'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 $137,992.89. Following the transaction, the chief operating officer owned 104,862 shares in the company, valued at $3,941,762.58. This represents a 3.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,974 shares of company stock worth $600,126 over the last ninety days. Company insiders own 1.10% of the company's stock.

Institutional Trading of NIKE

Hedge funds and other institutional investors have recently made changes to their positions in the company. Platform Technology Partners increased its position in shares of NIKE by 1.0% in the third quarter. Platform Technology Partners now owns 34,259 shares of the footwear maker's stock valued at $1,213,000 after buying an additional 354 shares in the last quarter. Commonwealth Equity Services LLC lifted its stake in shares of NIKE by 2.6% during the 3rd quarter. Commonwealth Equity Services LLC now owns 430,953 shares of the footwear maker's stock worth $15,256,000 after purchasing an additional 10,861 shares during the period. Covestor Ltd increased its stake in NIKE by 240.0% in the third quarter. Covestor Ltd now owns 1,785 shares of the footwear maker's stock valued at $63,000 after purchasing an additional 1,260 shares during the last quarter. MH & Associates Securities Management Corp ADV acquired a new stake in NIKE in the 3rd quarter worth about $2,418,000. Finally, Rakuten Investment Management Inc. lifted its holdings in shares of NIKE by 10.1% during the 3rd quarter. Rakuten Investment Management Inc. now owns 217,296 shares of the footwear maker's stock worth $7,788,000 after acquiring an additional 19,941 shares during the period. Hedge funds and other institutional investors own 64.25% of the company's stock.

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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