Zacks Investment Research Upgrades Nike, Inc. (NKE) to Hold
Nike, Inc. (NYSE:NKE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Friday.
According to Zacks, “NIKE’s robust growth and innovation efforts have been reflected in every quarter’s results for over three fiscal years now. The company’s last reported quarter gained from strength in international business and the global NIKE Direct business. Also, NIKE has been focused on its Consumer Direct Offense plan. 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. However, the company has lagged the industry in the past three months due to lackluster sales in its key North American market. Notably, sales in the region dipped 3% in first-quarter fiscal 2018, wherein the gross margin was hurt by currency woes and a higher mix of off-price sales. The company anticipates near-term results to be hurt by the tough retail environment, which led to a bleak second quarter view.”
Several other brokerages also recently weighed in on NKE. Nomura reissued a “buy” rating and issued a $60.00 target price on shares of Nike in a research note on Friday, June 30th. J P Morgan Chase & Co downgraded shares of Nike from an “overweight” rating to a “neutral” rating and cut their target price for the company from $61.00 to $58.00 in a research note on Friday, June 16th. Vetr raised shares of Nike from a “buy” rating to a “strong-buy” rating and set a $57.97 target price for the company in a research note on Wednesday, October 4th. Telsey Advisory Group cut their target price on shares of Nike from $66.00 to $62.00 and set an “outperform” rating for the company in a research note on Thursday, June 22nd. Finally, Cowen and Company boosted their target price on shares of Nike from $53.00 to $54.00 and gave the company a “market perform” rating in a research note on Friday, June 30th. Four investment analysts have rated the stock with a sell rating, eighteen have assigned a hold rating, twenty have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $59.14.
Nike (NYSE:NKE) last announced its earnings results on Tuesday, September 26th. The footwear maker reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.09. Nike had a net margin of 11.47% and a return on equity of 31.88%. The firm had revenue of $9.07 billion during the quarter, compared to the consensus estimate of $9.08 billion. During the same quarter in the previous year, the company posted $0.73 EPS. The firm’s revenue for the quarter was up .1% on a year-over-year basis.
In other Nike news, Director Johnathan A. Rodgers sold 16,000 shares of the firm’s stock in a transaction dated Thursday, September 14th. The stock was sold at an average price of $53.45, for a total transaction of $855,200.00. Following the completion of the sale, the director now directly owns 25,660 shares in the company, valued at approximately $1,371,527. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Eric D. Sprunk sold 112,323 shares of the firm’s stock in a transaction dated Friday, July 28th. The stock was sold at an average price of $58.61, for a total value of $6,583,251.03. Following the sale, the insider now owns 139,551 shares of the company’s stock, valued at $8,179,084.11. The disclosure for this sale can be found here. Insiders sold a total of 134,045 shares of company stock valued at $7,778,338 in the last quarter. 3.90% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. boosted its position in Nike by 2.5% during the 2nd quarter. Vanguard Group Inc. now owns 99,605,408 shares of the footwear maker’s stock worth $5,876,718,000 after acquiring an additional 2,452,993 shares during the period. State Street Corp boosted its position in Nike by 1.4% during the 1st quarter. State Street Corp now owns 59,554,253 shares of the footwear maker’s stock worth $3,319,086,000 after acquiring an additional 835,003 shares during the period. Wellington Management Group LLP boosted its position in Nike by 5.0% during the 1st quarter. Wellington Management Group LLP now owns 49,907,256 shares of the footwear maker’s stock worth $2,781,332,000 after acquiring an additional 2,375,447 shares during the period. Bank of New York Mellon Corp boosted its position in Nike by 0.5% during the 1st quarter. Bank of New York Mellon Corp now owns 29,087,830 shares of the footwear maker’s stock worth $1,621,066,000 after acquiring an additional 144,846 shares during the period. Finally, Capital Research Global Investors boosted its position in Nike by 10.4% during the 2nd quarter. Capital Research Global Investors now owns 24,135,396 shares of the footwear maker’s stock worth $1,423,988,000 after acquiring an additional 2,274,869 shares during the period. Hedge funds and other institutional investors own 62.63% 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’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.
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