Royal Bank Of Canada Reiterates "Outperform" Rating for NIKE (NYSE:NKE)

Key Points

• Royal Bank of Canada reiterated an "Outperform" rating on NIKE with a $78 price target, implying about a 34.85% upside from the stock's current level.
• NIKE beat fourth‑quarter estimates with EPS of $0.53 versus $0.37 expected and revenue of $12.43B (vs. $12.19B), though revenue was up only 0.6% year‑over‑year.
• Insiders bought shares recently (Director Timothy D. Cook bought 50,000 shares) — insiders purchased 75,079 shares worth ~$4.45M last quarter — while the stock trades around $57.84 and the consensus price target is $74.61 (22 Buy, 12 Hold, 1 Sell).

NIKE (NYSE:NKE - Get Free Report)'s stock had its "outperform" rating reissued by analysts at Royal Bank Of Canada in a research note issued to investors on Thursday,Benzinga reports. They presently have a $78.00 target price on the footwear maker's stock. Royal Bank Of Canada's price target would suggest a potential upside of 34.85% from the stock's current price.

Other research analysts have also recently issued research reports about the company. Robert W. Baird lowered their price objective on NIKE from $93.00 to $85.00 and set an "outperform" rating for the company in a research note on Friday, December 19th. Bank of America reduced their price target on NIKE from $84.00 to $73.00 and set a "buy" rating for the company in a report on Friday, December 19th. Weiss Ratings upgraded shares of NIKE from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, January 12th. Daiwa Securities Group cut their price objective on shares of NIKE from $75.00 to $61.00 in a research report on Tuesday, December 23rd. Finally, Stifel Nicolaus set a $65.00 target price on shares of NIKE and gave the stock a "hold" rating in a report on Friday, December 19th. Twenty-two equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $74.61.

NIKE Stock Down 1.4%

NYSE:NKE traded down $0.80 during mid-day trading on Thursday, hitting $57.84. 5,285,184 shares of the company's stock were exchanged, compared to its average volume of 15,404,594. NIKE has a one year low of $52.28 and a one year high of $80.19. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.06 and a quick ratio of 1.40. The business has a fifty day moving average price of $63.38 and a 200 day moving average price of $66.67. The company has a market cap of $85.63 billion, a PE ratio of 34.02, a P/E/G ratio of 3.04 and a beta of 1.27.

NIKE (NYSE:NKE - Get Free Report) last announced its earnings results on Thursday, December 18th. The footwear maker reported $0.53 earnings per share for the quarter, beating analysts' consensus estimates of $0.37 by $0.16. NIKE had a net margin of 5.43% and a return on equity of 18.43%. The business had revenue of $12.43 billion during the quarter, compared to the consensus estimate of $12.19 billion. During the same quarter last year, the firm earned $0.78 earnings per share. The business's revenue for the quarter was up .6% on a year-over-year basis. Equities analysts predict that NIKE will post 2.05 EPS for the current year.

Insider Activity at NIKE

In related news, Director Timothy D. Cook bought 50,000 shares of the firm's stock in a transaction on Monday, December 22nd. The stock was acquired at an average cost of $58.97 per share, for a total transaction of $2,948,500.00. Following the purchase, the director owned 105,480 shares in the company, valued at approximately $6,220,155.60. This represents a 90.12% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Robert Holmes Swan purchased 8,691 shares of the stock in a transaction dated Monday, December 22nd. The shares were purchased at an average cost of $57.54 per share, for a total transaction of $500,080.14. Following the completion of the acquisition, the director directly owned 43,293 shares in the company, valued at approximately $2,491,079.22. This trade represents a 25.12% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 75,079 shares of company stock worth $4,449,887 over the last quarter. Company insiders own 0.80% of the company's stock.

Institutional Trading of NIKE

Hedge funds have recently bought and sold shares of the company. Cornerstone Financial Management LLC purchased a new stake in shares of NIKE during the 4th quarter valued at about $26,000. Sankala Group LLC bought a new stake in NIKE during the fourth quarter valued at approximately $26,000. J.Safra Asset Management Corp bought a new stake in NIKE during the fourth quarter valued at approximately $29,000. Kemnay Advisory Services Inc. purchased a new stake in NIKE during the fourth quarter valued at approximately $30,000. Finally, Twin Peaks Wealth Advisors LLC bought a new position in NIKE in the second quarter worth approximately $31,000. Hedge funds and other institutional investors own 64.25% of the company's stock.

About NIKE

Nike, Inc NYSE: NKE is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).

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