NIKE (NYSE:NKE) Shares Down 3.3% on Analyst Downgrade

NIKE, Inc. (NYSE:NKE)’s stock price dropped 3.3% during mid-day trading on Wednesday after Royal Bank Of Canada lowered their price target on the stock from $85.00 to $78.00. Royal Bank Of Canada currently has a buy rating on the stock. NIKE traded as low as $63.19 and last traded at $63.2030. Approximately 18,200,386 shares changed hands during mid-day trading, a decline of 13% from the average daily volume of 20,975,213 shares. The stock had previously closed at $65.35.

Other equities analysts have also issued research reports about the stock. Argus reduced their target price on shares of NIKE from $85.00 to $70.00 in a report on Tuesday, December 23rd. Jefferies Financial Group reissued a “buy” rating and issued a $115.00 price objective on shares of NIKE in a research report on Friday, December 12th. Morgan Stanley set a $72.00 price objective on NIKE and gave the stock a “positive” rating in a research note on Wednesday, October 1st. Wells Fargo & Company set a $65.00 target price on NIKE and gave the company an “overweight” rating in a research note on Friday, December 19th. Finally, Bank of America reduced their price target on NIKE from $84.00 to $73.00 and set a “buy” rating on the stock in a research report on Friday, December 19th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $75.45.

Insiders Place Their Bets

In related news, Director Timothy D. Cook purchased 50,000 shares of NIKE stock in a transaction dated Monday, December 22nd. The shares were acquired at an average price of $58.97 per share, with a total value of $2,948,500.00. Following the completion of the transaction, the director owned 105,480 shares of the company’s stock, valued at approximately $6,220,155.60. This trade represents a 90.12% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robert Holmes Swan purchased 8,691 shares of the firm’s stock in a transaction that occurred on Monday, December 22nd. The stock was purchased at an average price of $57.54 per share, with a total value of $500,080.14. Following the completion of the purchase, the director directly owned 43,293 shares of the company’s stock, valued at approximately $2,491,079.22. This represents a 25.12% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders have purchased 91,229 shares of company stock valued at $5,452,640. 0.80% of the stock is owned by insiders.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Top insiders bought the dip (Elliott Hill, Tim Cook and other directors), signaling management and the board’s confidence and providing short-term buying support. Insider Buying Article
• Positive Sentiment: Analysts reiterated bullish views: Bank of America kept a Buy rating citing North America-led recovery and inventory discipline; Sanford C. Bernstein also reaffirmed Buy with an $85 target — these endorsements support upside case. TipRanks Article
• Neutral Sentiment: Coverage and valuation pieces are re-examining NKE after insider buys (including Tim Cook), leaving investors debating whether to follow those buys or wait for clearer macro improvement. Yahoo Finance Article
• Neutral Sentiment: Comparisons to Adidas and longer-term bounce-back narratives are being discussed by analysts — useful context but not an immediate catalyst. Zacks Comparison Article
• Negative Sentiment: Greater China remains a material drag (double-digit revenue decline in recent quarter); China-related demand and local competition cloud the recovery outlook. Zacks China Headwind Article
• Negative Sentiment: Nike quietly exited RTFKT after closing the digital collectibles unit; the move signals retreat from the NFT playbook and may reduce optional upside from digital/gaming initiatives. Cointelegraph Article
• Negative Sentiment: Some firms trimmed price targets (RBC cut its target from $85 to $78), limiting near-term upside expectations despite buy ratings. Benzinga/MarketScreener Coverage

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in NKE. Mitchell Mcleod Pugh & Williams Inc. boosted its holdings in NIKE by 1.0% in the second quarter. Mitchell Mcleod Pugh & Williams Inc. now owns 14,176 shares of the footwear maker’s stock worth $1,007,000 after purchasing an additional 134 shares during the period. Main Street Financial Solutions LLC lifted its position in shares of NIKE by 4.2% in the 2nd quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker’s stock worth $244,000 after buying an additional 139 shares during the last quarter. St. Clair Advisors LLC boosted its holdings in shares of NIKE by 0.9% in the 3rd quarter. St. Clair Advisors LLC now owns 15,217 shares of the footwear maker’s stock valued at $1,061,000 after buying an additional 140 shares during the period. Caldwell Sutter Capital Inc. boosted its holdings in shares of NIKE by 6.3% in the 2nd quarter. Caldwell Sutter Capital Inc. now owns 2,390 shares of the footwear maker’s stock valued at $170,000 after buying an additional 142 shares during the period. Finally, Salomon & Ludwin LLC grew its position in shares of NIKE by 10.1% during the 2nd quarter. Salomon & Ludwin LLC now owns 1,575 shares of the footwear maker’s stock valued at $120,000 after buying an additional 145 shares during the last quarter. Institutional investors and hedge funds own 64.25% of the company’s stock.

NIKE Trading Down 3.3%

The stock has a market cap of $93.43 billion, a price-to-earnings ratio of 37.18, a price-to-earnings-growth ratio of 2.78 and a beta of 1.28. The firm’s 50 day moving average is $63.47 and its two-hundred day moving average is $69.49. The company has a quick ratio of 1.40, a current ratio of 2.06 and a debt-to-equity ratio of 0.50.

NIKE (NYSE:NKE) last issued its earnings results on Thursday, December 18th. The footwear maker reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.16. The company had revenue of $12.43 billion during the quarter, compared to the consensus estimate of $12.19 billion. NIKE had a return on equity of 18.43% and a net margin of 5.43%.NIKE’s quarterly revenue was up .6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.78 earnings per share. Equities analysts anticipate that NIKE, Inc. will post 2.05 EPS for the current year.

NIKE Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, January 2nd. Shareholders of record on Monday, December 1st were given a $0.41 dividend. This is a boost from NIKE’s previous quarterly dividend of $0.40. This represents a $1.64 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Monday, December 1st. NIKE’s dividend payout ratio is 96.47%.

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).