Nike, Inc. (NKE) Upgraded 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 Monday.
According to Zacks, “To counter consumer shift toward online shopping, Nike unveiled a new company alignment – the Consumer Direct Offense. Driven by its Triple Double strategy, this restructuring plan focuses on using digital methods for rapid innovation and product development, along with strengthening consumer relations by operating through core regions. These regions include 12 key cities which are expected to account for over 80% of Nike’s previously forecasted growth, till 2020. The company expects these changes to result in a 2% cut in its global workforce, leading to about 1,400 layoffs. Nike’s shares have lagged the broader sector year to date. Incidentally, the company’s top-line fell prey to stiff competition and a tough retail backdrop in the last reported quarter. These factors, along with lingering currency woes also caused a soft sales view for fourth-quarter fiscal 2017. However, estimates have been stable ahead of earnings.”
Other analysts also recently issued research reports about the stock. Jefferies Group LLC restated a “buy” rating and set a $75.00 price target on shares of Nike in a report on Wednesday, March 22nd. B. Riley restated a “neutral” rating and set a $56.00 price target on shares of Nike in a report on Wednesday, March 22nd. Argus downgraded shares of Nike from a “buy” rating to a “hold” rating and raised their price target for the stock from $55.25 to $55.56 in a report on Tuesday, April 4th. Vetr upgraded shares of Nike from a “hold” rating to a “buy” rating and set a $55.06 price target for the company in a report on Thursday. Finally, J P Morgan Chase & Co downgraded shares of Nike from an “overweight” rating to a “neutral” rating and cut their price target for the stock from $61.00 to $58.00 in a report on Friday. Two investment analysts have rated the stock with a sell rating, sixteen have given a hold rating and twenty-one have given a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $60.74.
Shares of Nike (NYSE:NKE) traded up 0.8536% during midday trading on Monday, reaching $51.5362. The company’s stock had a trading volume of 1,598,671 shares. The stock has a market capitalization of $85.07 billion, a PE ratio of 21.5003 and a beta of 0.47. The company has a 50 day moving average price of $53.33 and a 200-day moving average price of $54.14. Nike has a 52 week low of $49.01 and a 52 week high of $60.33. Nike also was the target of unusually large options trading activity on Friday. Investors purchased 42,759 put options on the company. This represents an increase of approximately 374% compared to the typical volume of 9,024 put options.
Nike (NYSE:NKE) last announced its quarterly earnings results on Tuesday, March 21st. The footwear maker reported $0.68 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.53 by $0.15. The business had revenue of $8.43 billion during the quarter, compared to the consensus estimate of $8.47 billion. Nike had a net margin of 12.02% and a return on equity of 32.97%. The business’s revenue was up 5.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.55 EPS. On average, equities research analysts expect that Nike will post $2.41 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 5th. Stockholders of record on Monday, June 5th will be paid a dividend of $0.18 per share. The ex-dividend date of this dividend is Thursday, June 1st. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.41%. Nike’s dividend payout ratio (DPR) is 30.00%.
In other news, Chairman Mark G. Parker sold 100,000 shares of the business’s stock in a transaction dated Monday, April 3rd. The shares were sold at an average price of $55.50, for a total transaction of $5,550,000.00. Following the transaction, the chairman now directly owns 1,966,235 shares in the company, valued at $109,126,042.50. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Eric D. Sprunk sold 50,000 shares of the business’s stock in a transaction dated Friday, March 24th. The stock was sold at an average price of $55.67, for a total transaction of $2,783,500.00. Following the transaction, the insider now owns 300,108 shares in the company, valued at $16,707,012.36. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 379,000 shares of company stock worth $21,213,800. Company insiders own 3.90% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Baltimore Washington Financial Advisors Inc. bought a new position in shares of Nike during the fourth quarter valued at $10,508,000. Clarius Group LLC bought a new position in shares of Nike during the fourth quarter valued at $111,000. Webster Bank N. A. raised its position in shares of Nike by 75.5% in the first quarter. Webster Bank N. A. now owns 2,092 shares of the footwear maker’s stock valued at $117,000 after buying an additional 900 shares during the last quarter. Crestwood Advisors Group LLC bought a new position in shares of Nike during the first quarter valued at $117,000. Finally, Gierl Augustine Investment Management Inc raised its position in shares of Nike by 5.3% in the first quarter. Gierl Augustine Investment Management Inc now owns 2,121 shares of the footwear maker’s stock valued at $118,000 after buying an additional 107 shares during the last quarter. Institutional investors own 65.55% of the company’s stock.
Nike Company Profile
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Nike Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nike Inc. and related companies with MarketBeat.com's FREE daily email newsletter.