NIKE (NYSE:NKE) Stock Price Up 1.6% - Here's What Happened

Key Points

• NIKE shares rose 1.6% to about $37.91 in Monday trading, with roughly 24.4 million shares changing hands.
• Analyst sentiment remains mixed to negative: the consensus rating is “Reduce” with an average price target of $40.93, despite Guggenheim maintaining a “Buy” rating and $50 target.
• NIKE exceeded quarterly EPS expectations ($0.48 versus $0.43) but revenue fell 4.3% year over year to $11.21 billion. The company also declared a $0.41 quarterly dividend, equating to a 4.3% yield.

Shares of NIKE, Inc. (NYSE:NKE - Get Free Report) rose 1.6% during trading on Monday. The stock traded as high as $38.50 and last traded at $37.9060. Approximately 24,401,926 shares were traded during mid-day trading, a decline of 2% from the average daily volume of 24,782,334 shares. The stock had previously closed at $37.30.

Analysts Set New Price Targets

NKE has been the topic of a number of recent research reports. Guggenheim reaffirmed a "buy" rating and set a $50.00 price target on shares of NIKE in a research report on Thursday. Wells Fargo & Company set a $30.00 price objective on shares of NIKE and gave the company an "equal weight" rating in a report on Friday, October 2nd. CICC Research cut their price objective 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. Zacks Research lowered shares of NIKE from a "hold" rating to a "strong sell" rating in a research report on Thursday, October 1st. Finally, BMO Capital Markets reaffirmed an "underperform" rating on shares of NIKE in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty-one have issued a Hold rating and eleven have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $40.93.

NIKE Stock Performance

The stock has a 50 day moving average of $37.12 and a 200 day moving average of $41.26. 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 cap of $56.30 billion, a price-to-earnings ratio of 18.22, a P/E/G ratio of 4.37 and a beta of 1.09.

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

NIKE Announces Dividend

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

Insider Activity

In related news, EVP Philip McCartney sold 2,559 shares of NIKE stock in a transaction that occurred on 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 of the company's stock, valued at $2,936,568.39. This trade represents a 3.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of the business's stock in a transaction that occurred on 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 of the company's stock, valued at approximately $3,418,064. This represents a 2.91% decrease in their ownership of the stock. 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. Over the last quarter, insiders have sold 14,974 shares of company stock worth $600,126. Insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On NIKE

Several hedge funds and other institutional investors have recently modified their holdings of NKE. State Street Corp grew its position in NIKE by 6.8% in the second quarter. State Street Corp now owns 63,598,789 shares of the footwear maker's stock valued at $2,636,104,000 after acquiring an additional 4,052,428 shares during the last quarter. Flossbach Von Storch SE acquired a new stake in shares of NIKE in the 2nd quarter valued at approximately $488,714,000. Amundi boosted 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 valued at $265,199,000 after purchasing an additional 2,406,609 shares in the last quarter. Van ECK Associates Corp grew its holdings in shares of NIKE by 4.8% during the 2nd quarter. Van ECK Associates Corp now owns 6,257,863 shares of the footwear maker's stock valued at $256,885,000 after purchasing an additional 286,395 shares during the last quarter. Finally, Assenagon Asset Management S.A. grew its holdings in shares of NIKE by 92.3% during the 3rd quarter. Assenagon Asset Management S.A. now owns 4,789,274 shares of the footwear maker's stock valued at $169,540,000 after purchasing an additional 2,298,400 shares during the last quarter. Institutional investors own 64.25% of the company's stock.

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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