Investors Buy Shares of Nike, Inc. (NKE) on Weakness Following Analyst Downgrade
Traders bought shares of Nike, Inc. (NYSE:NKE) on weakness during trading hours on Wednesday after Telsey Advisory Group lowered their price target on the stock from $63.00 to $61.00. $91.12 million flowed into the stock on the tick-up and $48.13 million flowed out of the stock on the tick-down, for a money net flow of $42.99 million into the stock. Of all companies tracked, Nike had the 11th highest net in-flow for the day. Nike traded down ($0.17) for the day and closed at $52.56
A number of other research analysts have also weighed in on the company. Morgan Stanley restated a “buy” rating and set a $64.00 price objective (down previously from $68.00) on shares of Nike in a research report on Tuesday. Jefferies Group LLC lowered Nike to a “buy” rating in a research report on Tuesday. Vetr downgraded shares of Nike from a “strong-buy” rating to a “buy” rating and set a $59.57 price objective for the company. in a research note on Monday. Needham & Company LLC reissued a “hold” rating on shares of Nike in a research note on Thursday, August 24th. Finally, Stifel Nicolaus reissued a “buy” rating and issued a $66.00 price objective on shares of Nike in a research note on Thursday, August 24th. Three investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and twenty-three have given a buy rating to the stock. The company presently has an average rating of “Buy” and a consensus target price of $60.36.
In other news, CFO Andrew Campion sold 96,243 shares of the firm’s stock in a transaction on Friday, June 30th. The shares were sold at an average price of $56.68, for a total value of $5,455,053.24. Following the sale, the chief financial officer now owns 50,246 shares in the company, valued at $2,847,943.28. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Trevor A. Edwards sold 200,000 shares of the firm’s stock in a transaction on Wednesday, July 5th. The stock was sold at an average price of $57.63, for a total transaction of $11,526,000.00. Following the completion of the sale, the insider now owns 729,610 shares in the company, valued at approximately $42,047,424.30. The disclosure for this sale can be found here. In the last quarter, insiders have sold 492,360 shares of company stock worth $28,485,174. Corporate insiders own 3.90% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the company. Cambridge Advisors Inc. boosted its position in shares of Nike by 0.3% in the first quarter. Cambridge Advisors Inc. now owns 24,330 shares of the footwear maker’s stock worth $1,356,000 after buying an additional 83 shares during the last quarter. Rothschild Investment Corp IL raised its stake in shares of Nike by 18.7% in the first quarter. Rothschild Investment Corp IL now owns 12,619 shares of the footwear maker’s stock worth $703,000 after buying an additional 1,992 shares during the period. Huntington National Bank raised its stake in shares of Nike by 0.9% in the first quarter. Huntington National Bank now owns 876,587 shares of the footwear maker’s stock worth $48,853,000 after buying an additional 8,064 shares during the period. Bright Rock Capital Management LLC acquired a new stake in shares of Nike during the first quarter worth $5,016,000. Finally, West Coast Financial LLC raised its stake in shares of Nike by 0.8% in the first quarter. West Coast Financial LLC now owns 96,564 shares of the footwear maker’s stock worth $5,382,000 after buying an additional 781 shares during the period. 62.71% of the stock is owned by hedge funds and other institutional investors.
The firm’s 50 day moving average price is $57.44 and its 200 day moving average price is $55.76. The firm has a market capitalization of $86.78 billion, a P/E ratio of 21.04 and a beta of 0.59.
Nike (NYSE:NKE) last posted its earnings results on Thursday, June 29th. The footwear maker reported $0.60 EPS for the quarter, beating the consensus estimate of $0.50 by $0.10. The firm had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.63 billion. Nike had a return on equity of 34.18% and a net margin of 12.34%. The business’s quarterly revenue was up 5.3% on a year-over-year basis. During the same period last year, the company earned $0.49 earnings per share. Equities research analysts predict that Nike, Inc. will post $2.42 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, October 2nd. Investors of record on Tuesday, September 5th will be paid a dividend of $0.18 per share. The ex-dividend date is Thursday, August 31st. This represents a $0.72 annualized dividend and a yield of 1.36%. Nike’s dividend payout ratio is currently 28.69%.
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NIKE, Inc is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company’s operating segments include North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets. Its portfolio brands include the NIKE Brand, Jordan Brand, Hurley and Converse.
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