Nike, Inc. (NKE) Upgraded to “Hold” by Zacks Investment Research
Nike, Inc. (NYSE:NKE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “NIKE has lagged the sector 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. Estimates have been falling lately ahead of the second quarter earnings. However, 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. It also has a positive record of earnings surprises in recent quarters.”
NKE has been the topic of several other reports. Morgan Stanley reissued a “buy” rating and issued a $64.00 price target (down from $68.00) on shares of Nike in a research note on Tuesday, August 29th. Telsey Advisory Group lowered their target price on Nike from $63.00 to $61.00 and set an “outperform” rating on the stock in a research report on Wednesday, August 30th. Vetr raised Nike from a “buy” rating to a “strong-buy” rating and set a $59.09 target price on the stock in a research report on Wednesday, September 6th. Cowen and Company set a $54.00 target price on Nike and gave the stock a “hold” rating in a research report on Friday, August 4th. Finally, Wells Fargo & Company reaffirmed a “market perform” rating and set a $55.00 target price (down from $56.00) on shares of Nike in a research report on Tuesday, September 19th. Four research analysts have rated the stock with a sell rating, nineteen have given a hold rating, nineteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $59.04.
Shares of Nike (NYSE NKE) traded down 0.65% during mid-day trading on Tuesday, hitting $53.31. 6,891,749 shares of the company were exchanged. The firm has a 50 day moving average of $52.57 and a 200 day moving average of $54.67. Nike has a 12-month low of $49.01 and a 12-month high of $60.53. The company has a market capitalization of $86.98 billion, a price-to-earnings ratio of 22.69 and a beta of 0.61.
Nike (NYSE:NKE) last issued its quarterly earnings results on Tuesday, September 26th. The footwear maker reported $0.57 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.48 by $0.09. Nike had a return on equity of 31.88% and a net margin of 11.47%. The firm had revenue of $9.07 billion for the quarter, compared to analyst estimates of $9.08 billion. During the same period in the previous year, the firm earned $0.73 earnings per share. The company’s revenue was up .1% compared to the same quarter last year. Equities research analysts forecast that Nike will post $2.32 earnings per share for the current year.
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In related 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 transaction, the director now directly owns 25,660 shares of the company’s stock, valued at approximately $1,371,527. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Eric D. Sprunk sold 112,323 shares of the firm’s stock in a transaction dated Friday, July 28th. The shares were sold at an average price of $58.61, for a total value of $6,583,251.03. Following the transaction, the insider now directly owns 139,551 shares in the company, valued at $8,179,084.11. The disclosure for this sale can be found here. Company insiders own 3.90% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. V Wealth Management LLC purchased a new position in shares of Nike during the 2nd quarter valued at about $100,000. Asset Planning Services Ltd. raised its holdings in shares of Nike by 0.3% during the 2nd quarter. Asset Planning Services Ltd. now owns 2,132 shares of the footwear maker’s stock valued at $126,000 after buying an additional 7 shares in the last quarter. Atlantic Trust LLC purchased a new position in shares of Nike during the 2nd quarter valued at about $136,000. Howe & Rusling Inc. raised its holdings in shares of Nike by 751.3% during the 3rd quarter. Howe & Rusling Inc. now owns 2,639 shares of the footwear maker’s stock valued at $137,000 after buying an additional 2,329 shares in the last quarter. Finally, Rational Advisors LLC raised its holdings in shares of Nike by 14.3% during the 1st quarter. Rational Advisors LLC now owns 2,572 shares of the footwear maker’s stock valued at $143,000 after buying an additional 321 shares in the last quarter. 62.51% of the stock is currently owned by institutional investors.
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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