Nike Inc. (NKE) Upgraded to Hold at Zacks Investment Research
Nike Inc. (NYSE:NKE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Nike’s customer-centric approach, innovative products and strong portfolio has helped strengthened its position in the footwear and athletic apparel industry. The company also continues to seek opportunities for increasing its market share via acquisitions, contracts to supply sports-related assortments, and development of its eCommerce and DTC business model. Nike’s strategic initiatives are well reflected from its positive earnings surprise streak over the past 16 straight quarters. However, top line has been missing estimates for quite some time due to adverse currency movements. Evidently, the company expects lingering currency woes to strongly hurt revenues in first-half fiscal 2017. Also, the company’s future orders witnessed a considerable slowdown and lagged expectations in the fourth quarter due to stiff competition from rivals. Estimates have been stable ahead of the company’s first-quarter earnings release.”
Several other brokerages have also recently commented on NKE. B. Riley restated a “buy” rating and set a $66.00 target price on shares of Nike in a report on Monday, June 27th. Susquehanna restated a “positive” rating and set a $74.00 target price on shares of Nike in a report on Wednesday, June 22nd. Cowen and Company restated a “buy” rating on shares of Nike in a report on Wednesday, June 22nd. Piper Jaffray Cos. restated an “overweight” rating and set a $58.00 target price (down previously from $69.00) on shares of Nike in a report on Wednesday, June 29th. Finally, Deutsche Bank AG restated a “buy” rating on shares of Nike in a report on Wednesday, August 10th. Two investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and twenty-two have assigned a buy rating to the stock. The company has an average rating of “Buy” and an average target price of $65.63.
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Nike (NYSE:NKE) opened at 55.96 on Thursday. The stock’s 50 day moving average is $56.82 and its 200 day moving average is $57.46. Nike has a one year low of $51.48 and a one year high of $68.19. The stock has a market capitalization of $93.88 billion, a price-to-earnings ratio of 25.91 and a beta of 0.52.
Nike (NYSE:NKE) last announced its quarterly earnings results on Tuesday, June 28th. The footwear maker reported $0.49 earnings per share for the quarter, beating analysts’ consensus estimates of $0.48 by $0.01. Nike had a return on equity of 29.57% and a net margin of 11.61%. The firm had revenue of $8.24 billion for the quarter, compared to analysts’ expectations of $8.28 billion. During the same period in the prior year, the business posted $0.49 earnings per share. The business’s revenue was up 6.0% compared to the same quarter last year. On average, equities analysts forecast that Nike will post $2.40 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 3rd. Shareholders of record on Tuesday, September 6th will be issued a $0.16 dividend. The ex-dividend date is Thursday, September 1st. This represents a $0.64 annualized dividend and a yield of 1.16%. Nike’s dividend payout ratio is presently 29.63%.
In other Nike news, Director John C. Lechleiter purchased 1,000 shares of the firm’s stock in a transaction dated Friday, July 1st. The shares were bought at an average price of $55.09 per share, for a total transaction of $55,090.00. Following the purchase, the director now owns 23,682 shares in the company, valued at approximately $1,304,641.38. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP John F. Slusher sold 72,696 shares of Nike stock in a transaction on Tuesday, July 26th. The shares were sold at an average price of $57.75, for a total value of $4,198,194.00. Following the completion of the transaction, the executive vice president now owns 231,861 shares in the company, valued at approximately $13,389,972.75. The disclosure for this sale can be found here. 3.90% of the stock is owned by company insiders.
Several institutional investors have recently modified their holdings of NKE. Capstone Asset Management Co. raised its position in shares of Nike by 8.3% in the second quarter. Capstone Asset Management Co. now owns 384,426 shares of the footwear maker’s stock valued at $21,220,000 after buying an additional 29,538 shares during the last quarter. National Pension Service raised its position in shares of Nike by 4.1% in the first quarter. National Pension Service now owns 709,270 shares of the footwear maker’s stock valued at $43,599,000 after buying an additional 27,918 shares during the last quarter. Gofen & Glossberg LLC IL raised its position in shares of Nike by 1.0% in the second quarter. Gofen & Glossberg LLC IL now owns 304,456 shares of the footwear maker’s stock valued at $16,806,000 after buying an additional 2,890 shares during the last quarter. AMP Capital Investors Ltd acquired a new position in shares of Nike during the first quarter valued at about $37,460,000. Finally, Bath Savings Trust Co raised its position in shares of Nike by 2.8% in the second quarter. Bath Savings Trust Co now owns 202,524 shares of the footwear maker’s stock valued at $11,179,000 after buying an additional 5,515 shares during the last quarter. Institutional investors own 62.04% of the company’s stock.
NIKE, Inc is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet Websites (which the Company refers to as its Direct to Consumer or DTC operations), and through a mix of independent distributors and licensees throughout the world.
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