NIKE (NYSE:NKE) Shares Gap Down After Analyst Downgrade

NIKE, Inc. (NYSE:NKE) gapped down before the market opened on Friday after Bank of America lowered their price target on the stock from $84.00 to $73.00. The stock had previously closed at $65.63, but opened at $59.20. Bank of America currently has a buy rating on the stock. NIKE shares last traded at $59.4820, with a volume of 19,209,855 shares changing hands.

Several other brokerages also recently issued reports on NKE. KeyCorp set a $90.00 price target on shares of NIKE and gave the company an “overweight” rating in a report on Thursday, October 2nd. Guggenheim raised shares of NIKE to a “strong-buy” rating in a research note on Wednesday, December 10th. BTIG Research reiterated a “buy” rating and issued a $100.00 target price on shares of NIKE in a research note on Friday, December 12th. Barclays set a $64.00 price target on NIKE and gave the stock an “equal weight” rating in a research report on Friday. Finally, Telsey Advisory Group dropped their price target on NIKE from $75.00 to $72.00 and set a “market perform” rating for the company in a report on Friday. Three analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $78.14.

Insider Activity

In other NIKE news, Chairman Mark G. Parker sold 86,078 shares of the business’s stock in a transaction dated Friday, November 14th. The stock was sold at an average price of $64.80, for a total transaction of $5,577,854.40. Following the completion of the sale, the chairman directly owned 647,615 shares of the company’s stock, valued at approximately $41,965,452. The trade was a 11.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Jorgen Vig Knudstorp bought 16,150 shares of the business’s stock in a transaction on Friday, November 7th. The shares were acquired at an average price of $62.09 per share, for a total transaction of $1,002,753.50. Following the completion of the transaction, the director owned 21,388 shares in the company, valued at approximately $1,327,980.92. This trade represents a 308.32% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.80% of the stock is currently owned by insiders.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Q2 beat on top and bottom line — Nike reported $12.4B in revenue and $0.53 EPS, both ahead of expectations, showing resilience in demand overall. Nike Beats on Earnings But Struggles in China and Faces Tariffs
• Positive Sentiment: North America strength and product wins — North American sales rose ~9% and running category grew ~20%, supporting the turnaround thesis for key categories. Nike’s China conundrum deepens
• Neutral Sentiment: Analyst mix — Some firms reaffirm buys (Guggenheim, Needham/Buys remain) while others cut price targets or mark to market; Berenberg reiterated neutral with a $70 PT. This leaves Street views mixed but not uniformly bearish. MarketScreener Latest Ratings
• Negative Sentiment: Tariff and margin pressure — Gross margin fell ~300 bps (to ~40.6%) and management flagged substantial tariff headwinds (reported ~$1.5B FY impact) and guidance for further margin contraction next quarter. Nike Plunges 11% As Tariffs, China Woes Cloud Outlook
• Negative Sentiment: China slump — Greater China sales plunged (~16–20% reported across outlets), with Chinese DTC digital revenue down sharply, raising concerns that Nike’s China playbook isn’t yet working. Nike is struggling to stay culturally relevant in China
• Negative Sentiment: Guidance and investor reaction — Management guided to low‑single‑digit revenue declines next quarter and warned of margin headwinds; markets focused on that guidance and tariffs, driving heavy selling and large intraday volume. Nike says turnaround plans are ‘in the middle innings’

Hedge Funds Weigh In On NIKE

Large investors have recently bought and sold shares of the business. Mascoma Wealth Management LLC bought a new stake in shares of NIKE during the 2nd quarter valued at $26,000. Halbert Hargrove Global Advisors LLC grew its stake in shares of NIKE by 952.6% during the second quarter. Halbert Hargrove Global Advisors LLC now owns 400 shares of the footwear maker’s stock worth $28,000 after purchasing an additional 362 shares during the period. Saudi Central Bank acquired a new stake in shares of NIKE during the first quarter worth $30,000. Matrix Trust Co increased its holdings in NIKE by 53.1% in the second quarter. Matrix Trust Co now owns 441 shares of the footwear maker’s stock valued at $31,000 after purchasing an additional 153 shares during the last quarter. Finally, Twin Peaks Wealth Advisors LLC acquired a new position in NIKE in the second quarter valued at about $31,000. 64.25% of the stock is currently owned by institutional investors and hedge funds.

NIKE Stock Performance

The company has a quick ratio of 1.45, a current ratio of 2.19 and a debt-to-equity ratio of 0.59. The stock has a market cap of $86.91 billion, a P/E ratio of 34.59, a PEG ratio of 2.07 and a beta of 1.29. The stock has a fifty day simple moving average of $65.05 and a 200-day simple moving average of $69.44.

NIKE (NYSE:NKE) last posted its earnings results on Thursday, December 18th. The footwear maker reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.16. The company had revenue of $12.43 billion during the quarter, compared to analyst estimates of $12.19 billion. NIKE had a return on equity of 18.61% and a net margin of 5.43%.The company’s revenue for the quarter was up .6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.78 EPS. Equities analysts expect that NIKE, Inc. will post 2.05 earnings per share for the current fiscal year.

NIKE Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 2nd. Shareholders of record on Monday, December 1st will be issued a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 2.8%. This is a boost from NIKE’s previous quarterly dividend of $0.40. The ex-dividend date is Monday, December 1st. NIKE’s dividend payout ratio (DPR) is 96.47%.

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).