NIKE (NYSE:NKE) Trading Down 1.7% on Analyst Downgrade

NIKE, Inc. (NYSE:NKE)’s stock price dropped 1.7% during trading on Tuesday after Royal Bank of Canada lowered their price target on the stock from $100.00 to $75.00. Royal Bank of Canada currently has a sector perform rating on the stock. NIKE traded as low as $75.39 and last traded at $75.54. Approximately 8,397,840 shares traded hands during mid-day trading, a decline of 20% from the average daily volume of 10,558,041 shares. The stock had previously closed at $76.83.

Several other brokerages have also recently commented on NKE. Truist Financial dropped their target price on shares of NIKE from $99.00 to $81.00 and set a “hold” rating for the company in a research report on Friday, June 28th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $115.00 target price on shares of NIKE in a research report on Thursday, June 13th. TD Cowen dropped their target price on shares of NIKE from $89.00 to $75.00 and set a “hold” rating for the company in a research report on Friday, June 28th. BMO Capital Markets decreased their price target on shares of NIKE from $118.00 to $100.00 and set an “outperform” rating on the stock in a report on Friday, June 28th. Finally, Piper Sandler decreased their price target on shares of NIKE from $107.00 to $98.00 and set a “neutral” rating on the stock in a report on Friday, March 22nd. Two research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and fourteen have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $98.04.

Insider Transactions at NIKE

In other news, Chairman Mark G. Parker sold 168,378 shares of the stock in a transaction on Tuesday, May 14th. The shares were sold at an average price of $93.14, for a total transaction of $15,682,726.92. Following the completion of the sale, the chairman now directly owns 1,102,090 shares in the company, valued at $102,648,662.60. The transaction was disclosed in a filing with the SEC, which is available at this link. In other NIKE news, VP Johanna Nielsen sold 282 shares of the firm’s stock in a transaction on Thursday, May 9th. The shares were sold at an average price of $93.64, for a total value of $26,406.48. Following the transaction, the vice president now directly owns 730 shares of the company’s stock, valued at $68,357.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Chairman Mark G. Parker sold 168,378 shares of the firm’s stock in a transaction on Tuesday, May 14th. The shares were sold at an average price of $93.14, for a total transaction of $15,682,726.92. Following the completion of the transaction, the chairman now directly owns 1,102,090 shares in the company, valued at $102,648,662.60. The disclosure for this sale can be found here. Insiders sold a total of 213,660 shares of company stock worth $19,946,333 over the last three months. 0.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Piscataqua Savings Bank lifted its stake in shares of NIKE by 2.1% in the fourth quarter. Piscataqua Savings Bank now owns 4,861 shares of the footwear maker’s stock valued at $528,000 after buying an additional 100 shares in the last quarter. Physicians Financial Services Inc. lifted its stake in shares of NIKE by 0.6% in the fourth quarter. Physicians Financial Services Inc. now owns 16,077 shares of the footwear maker’s stock valued at $1,745,000 after buying an additional 100 shares in the last quarter. ZWJ Investment Counsel Inc. lifted its position in shares of NIKE by 4.0% during the fourth quarter. ZWJ Investment Counsel Inc. now owns 2,599 shares of the footwear maker’s stock valued at $282,000 after purchasing an additional 100 shares in the last quarter. Kornitzer Capital Management Inc. KS lifted its position in shares of NIKE by 0.4% during the fourth quarter. Kornitzer Capital Management Inc. KS now owns 25,568 shares of the footwear maker’s stock valued at $2,776,000 after purchasing an additional 100 shares in the last quarter. Finally, Claro Advisors LLC lifted its position in shares of NIKE by 0.8% during the fourth quarter. Claro Advisors LLC now owns 12,227 shares of the footwear maker’s stock valued at $1,327,000 after purchasing an additional 101 shares in the last quarter. 64.25% of the stock is owned by institutional investors.

NIKE Price Performance

The company has a quick ratio of 1.69, a current ratio of 2.40 and a debt-to-equity ratio of 0.55. The business’s 50-day moving average is $92.94 and its two-hundred day moving average is $98.54. The company has a market capitalization of $114.80 billion, a P/E ratio of 20.39, a price-to-earnings-growth ratio of 1.43 and a beta of 1.01.

NIKE (NYSE:NKE) last released its quarterly earnings results on Thursday, June 27th. The footwear maker reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates of $0.85 by $0.16. NIKE had a net margin of 11.10% and a return on equity of 42.63%. The company had revenue of $12.60 billion for the quarter, compared to analyst estimates of $12.86 billion. During the same period last year, the firm earned $0.66 earnings per share. The firm’s revenue was down 1.6% on a year-over-year basis. As a group, analysts predict that NIKE, Inc. will post 3.9 earnings per share for the current year.

NIKE Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, July 1st. Investors of record on Monday, June 3rd were given a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.95%. The ex-dividend date was Monday, June 3rd. NIKE’s payout ratio is currently 39.68%.

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.