CICC Research Downgrades NIKE (NYSE:NKE) to Market Perform

NIKE (NYSE:NKE) was downgraded by stock analysts at CICC Research from an “outperform” rating to a “market perform” rating in a research note issued to investors on Monday,MarketScreener reports. They currently have a $58.00 price target on the footwear maker’s stock, down from their previous price target of $69.00. CICC Research’s price target points to a potential upside of 31.37% from the stock’s current price.

Several other brokerages have also issued reports on NKE. Wells Fargo & Company decreased their price objective on NIKE from $65.00 to $55.00 and set an “overweight” rating for the company in a research report on Wednesday, April 1st. China Renaissance cut their price target on shares of NIKE from $74.60 to $50.30 and set a “hold” rating on the stock in a research note on Thursday. DA Davidson cut shares of NIKE from a “buy” rating to a “neutral” rating and reduced their price target for the company from $72.00 to $46.00 in a report on Thursday. Truist Financial dropped their price objective on shares of NIKE from $69.00 to $57.00 and set a “buy” rating on the stock in a report on Wednesday, April 1st. Finally, Bank of America reaffirmed a “neutral” rating and issued a $55.00 price objective (down from $73.00) on shares of NIKE in a research report on Wednesday, April 1st. Nineteen research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, NIKE presently has an average rating of “Moderate Buy” and a consensus price target of $63.25.

NIKE Price Performance

NKE opened at $44.15 on Monday. The stock has a market cap of $65.36 billion, a P/E ratio of 29.26, a P/E/G ratio of 2.34 and a beta of 1.31. NIKE has a 12 month low of $43.17 and a 12 month high of $80.17. The company has a quick ratio of 1.40, a current ratio of 2.14 and a debt-to-equity ratio of 0.50. The company has a fifty day simple moving average of $58.43 and a 200 day simple moving average of $63.06.

NIKE (NYSE:NKE) last posted its earnings results on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.06. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The firm had revenue of $11.28 billion during the quarter, compared to analysts’ expectations of $11.23 billion. During the same period in the previous year, the firm earned $0.54 earnings per share. The company’s revenue was up .1% on a year-over-year basis. On average, research analysts expect that NIKE will post 2.05 EPS for the current year.

Hedge Funds Weigh In On NIKE

Hedge funds and other institutional investors have recently made changes to their positions in the company. Brighton Jones LLC lifted its stake in NIKE by 388.5% in the 4th quarter. Brighton Jones LLC now owns 202,411 shares of the footwear maker’s stock valued at $15,316,000 after purchasing an additional 160,980 shares during the last quarter. Caxton Associates LLP acquired a new position in NIKE during the first quarter worth approximately $311,000. United Bank raised its stake in NIKE by 11.3% in the second quarter. United Bank now owns 17,067 shares of the footwear maker’s stock valued at $1,212,000 after buying an additional 1,736 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in NIKE by 410.3% in the second quarter. Arrowstreet Capital Limited Partnership now owns 132,942 shares of the footwear maker’s stock valued at $9,444,000 after buying an additional 106,891 shares during the period. Finally, CW Advisors LLC lifted its position in shares of NIKE by 3.9% in the second quarter. CW Advisors LLC now owns 20,046 shares of the footwear maker’s stock valued at $1,424,000 after buying an additional 748 shares during the last quarter. 64.25% of the stock is owned by institutional investors.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Motley Fool flags a potential long‑term “green shoot” technical/valuation signal that long‑term investors may find constructive while shares trade near their 52‑week low. Near Its 52-Week Low, Nike Is Flashing a Signal Long-Term Investors Shouldn’t Ignore
• Positive Sentiment: DZ Bank reiterated a Buy rating on NKE, which provides some analyst support beneath the recent weakness. NIKE’s (NKE) “Buy” Rating Reiterated at DZ Bank
• Neutral Sentiment: Coverage and commentary: Jim Cramer says he’s rooting for Nike but is unsure of the best tactical move, reflecting mixed sentiment among media and retail investors. Jim Cramer doesn’t know what Nike (NKE) should do even though he’s rooting for the firm
• Neutral Sentiment: Analysis piece on changing customer mix after the latest quarter provides context on causes of the miss and where management needs to fix strategy — useful for medium/long‑term positioning. Nike’s latest quarter shows customers have changed
• Negative Sentiment: Regulatory/legal risk: Johnson Fistel has opened an investigation into whether Nike’s executives violated securities laws, adding potential legal overhang for shareholders. Nike, Inc. Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses
• Negative Sentiment: Earnings and guidance shock: the company’s fiscal Q3 and guidance update prompted roughly a ~15% tumble in recent sessions as investors reacted to weaker results and forward visibility. Buy the Dip or Bail? One Investor Weighs In on Nike Stock (NKE)
• Negative Sentiment: Analyst pressure: firms cut or trimmed targets/ratings (DA Davidson cut to Neutral; China Renaissance cut its price target to $50.30), increasing downside risk until results/guidance stabilize. NIKE (NYSE:NKE) Cut to “Neutral” at DA Davidson China Renaissance Cuts NIKE (NYSE:NKE) Price Target to $50.30

NIKE Company Profile

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).