Redwood Investment Management LLC Invests $698,000 in NIKE, Inc. $NKE

Redwood Investment Management LLC purchased a new stake in NIKE, Inc. (NYSE:NKE) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 17,013 shares of the footwear maker’s stock, valued at approximately $698,000.

Several other hedge funds and other institutional investors also recently bought and sold shares of NKE. Brighton Jones LLC raised its holdings in NIKE by 388.5% in the fourth quarter. Brighton Jones LLC now owns 202,411 shares of the footwear maker’s stock valued at $15,316,000 after acquiring an additional 160,980 shares in the last quarter. Caxton Associates LLP bought a new stake in shares of NIKE in the 1st quarter worth about $311,000. United Bank raised its stake in shares of NIKE by 11.3% in the 2nd quarter. United Bank now owns 17,067 shares of the footwear maker’s stock valued at $1,212,000 after purchasing an additional 1,736 shares in the last quarter. NewEdge Advisors LLC lifted its position in shares of NIKE by 0.3% during the second quarter. NewEdge Advisors LLC now owns 64,161 shares of the footwear maker’s stock worth $4,558,000 after purchasing an additional 197 shares during the last quarter. Finally, CIBC Asset Management Inc grew its stake in NIKE by 6.5% in the second quarter. CIBC Asset Management Inc now owns 191,268 shares of the footwear maker’s stock worth $13,588,000 after purchasing an additional 11,646 shares in the last quarter. 64.25% of the stock is currently owned by hedge funds and other institutional investors.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE is appointing a senior executive with Walmart experience as it seeks to improve sales execution and rebuild momentum. The leadership addition provides a potential catalyst, although investors will likely want evidence of stronger results before changing their outlook. Nike taps Walmart veteran to help drive comeback
• Positive Sentiment: Some valuation measures suggest NKE shares may be undervalued after the prolonged decline. However, discounted-cash-flow analysis indicates the stock may be closer to fairly valued, limiting the strength of the bullish argument. Nike stock valuation analysis
• Positive Sentiment: Recent insider activity includes purchases by CEO Elliott Hill and other executives, signaling that some insiders view the depressed share price as attractive. Institutional positioning was mixed, with some large investors adding shares while others reduced holdings. Nike stock opinions and trading activity
• Neutral Sentiment: NIKE’s latest quarterly results exceeded earnings and revenue estimates, but revenue still declined year over year, reinforcing the view that the company’s recovery remains incomplete.
• Negative Sentiment: Truist downgraded NKE to Hold after weakness at retail partner Dick’s Sporting Goods raised concerns about soft traffic, muted consumer demand and a potentially longer turnaround. Analysts have also lowered price targets, citing China-related challenges. Why Nike stock is falling
• Negative Sentiment: Commentary highlights continued market-share erosion, legacy inventory issues and negative reactions to some upcoming Air Jordan designs, raising questions about NIKE’s product innovation and brand relevance. Nike performance struggles
• Negative Sentiment: Investors are also assessing dividend sustainability: NIKE’s payout growth could become more difficult to maintain if earnings do not improve materially during the turnaround. Nike dividend sustainability

Insider Activity

In related news, EVP Philip Mccartney sold 17,398 shares of NIKE stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $46.18, for a total value of $803,439.64. Following the sale, the executive vice president directly owned 53,133 shares in the company, valued at $2,453,681.94. This trade represents a 24.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Venkatesh Alagirisamy sold 890 shares of the business’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total transaction of $37,024.00. Following the transaction, the chief operating officer directly owned 74,820 shares of the company’s stock, valued at $3,112,512. The trade was a 1.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 26,142 shares of company stock worth $1,169,380. 1.10% of the stock is owned by insiders.

Wall Street Analyst Weigh In

NKE has been the subject of several research analyst reports. Sanford C. Bernstein reissued an “outperform” rating and issued a $68.00 price objective (down from $72.00) on shares of NIKE in a report on Wednesday, July 29th. UBS Group set a $48.00 price target on NIKE and gave the company a “neutral” rating in a report on Wednesday, July 1st. China Renaissance reduced their price objective on NIKE from $50.30 to $47.30 and set a “hold” rating on the stock in a research note on Thursday, July 2nd. Telsey Advisory Group set a $47.00 price objective on shares of NIKE and gave the stock a “market perform” rating in a report on Wednesday, July 1st. Finally, Stifel Nicolaus set a $45.00 target price on shares of NIKE and gave the stock a “hold” rating in a report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $52.94.

NIKE Trading Down 0.6%

Shares of NYSE NKE opened at $38.34 on Friday. The company has a market cap of $56.88 billion, a price-to-earnings ratio of 18.34, a price-to-earnings-growth ratio of 1.71 and a beta of 1.11. NIKE, Inc. has a 12-month low of $38.17 and a 12-month high of $79.13. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40. The stock’s 50 day simple moving average is $42.02 and its 200 day simple moving average is $47.17.

NIKE (NYSE:NKE) last issued its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.09. The firm had revenue of $10.97 billion during the quarter, compared to the consensus estimate of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The firm’s revenue was down 1.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.14 EPS. Equities research analysts expect that NIKE, Inc. will post 1.74 EPS for the current year.

NIKE Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.41 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $1.64 annualized dividend and a dividend yield of 4.3%. NIKE’s payout ratio is 78.47%.

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).