NIKE (NYSE:NKE) Shares Gap Up on Earnings Beat

NIKE, Inc. (NYSE:NKE)’s share price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $62.54, but opened at $69.79. NIKE shares last traded at $71.54, with a volume of 35,807,991 shares traded.

The footwear maker reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.02. The firm had revenue of $11.10 billion for the quarter, compared to analyst estimates of $10.69 billion. NIKE had a return on equity of 23.00% and a net margin of 6.95%. The business’s quarterly revenue was down 11.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.99 EPS.

NIKE Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 1st. Shareholders of record on Monday, June 2nd will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 2.22%. The ex-dividend date is Monday, June 2nd. NIKE’s dividend payout ratio (DPR) is 53.16%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on NKE shares. BMO Capital Markets decreased their target price on NIKE from $95.00 to $92.00 and set an “outperform” rating on the stock in a report on Friday, March 21st. Deutsche Bank Aktiengesellschaft decreased their target price on NIKE from $77.00 to $71.00 and set a “buy” rating on the stock in a report on Friday, June 20th. Morgan Stanley boosted their target price on NIKE from $61.00 to $64.00 and gave the stock an “equal weight” rating in a report on Friday. Berenberg Bank initiated coverage on shares of NIKE in a research report on Tuesday, April 15th. They issued a “hold” rating and a $58.00 target price for the company. Finally, Truist Financial reduced their target price on NIKE from $82.00 to $73.00 and set a “buy” rating on the stock in a report on Tuesday. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, sixteen have assigned a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat.com, NIKE presently has an average rating of “Moderate Buy” and an average price target of $79.33.

Insiders Place Their Bets

In other news, Director Robert Holmes Swan acquired 8,600 shares of the firm’s stock in a transaction that occurred on Friday, April 4th. The shares were bought at an average cost of $58.46 per share, with a total value of $502,756.00. Following the acquisition, the director now owns 31,983 shares in the company, valued at approximately $1,869,726.18. This represents a 36.78% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On NIKE

Institutional investors have recently made changes to their positions in the business. Stone House Investment Management LLC purchased a new stake in shares of NIKE in the 1st quarter valued at $25,000. Heck Capital Advisors LLC purchased a new position in NIKE in the 4th quarter worth approximately $28,000. LFA Lugano Financial Advisors SA increased its stake in NIKE by 110.5% in the 4th quarter. LFA Lugano Financial Advisors SA now owns 400 shares of the footwear maker’s stock worth $30,000 after purchasing an additional 210 shares during the period. Hopwood Financial Services Inc. purchased a new stake in NIKE during the 4th quarter valued at $30,000. Finally, Saudi Central Bank purchased a new stake in NIKE during the 1st quarter valued at $30,000. Hedge funds and other institutional investors own 64.25% of the company’s stock.

NIKE Stock Up 15.3%

The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.52 and a current ratio of 2.19. The company’s 50-day simple moving average is $60.63 and its two-hundred day simple moving average is $67.60. The firm has a market cap of $106.63 billion, a PE ratio of 33.38, a PEG ratio of 2.29 and a beta of 1.21.

About NIKE

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.