Nike (NKE) Downgraded by Zacks Investment Research
Zacks Investment Research lowered shares of Nike (NYSE:NKE) from a buy rating to a hold rating in a report released on Wednesday morning.
According to Zacks, “NIKE has surpassed the sector in the past three months driven by 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 the recent quarters. However, lackluster sales trend in the company’s key North American market remains a headwind. Also, gross margin in the last quarter was hurt by currency woes and a higher mix of off-price sales. Further, management anticipates near-term results to be hurt by the tough retail environment, which led to a bleak second quarter view. Nevertheless, second-quarter estimates have been stable ahead of the earnings release.”
NKE has been the topic of several other research reports. Morgan Stanley reaffirmed a buy rating and set a $64.00 target price (down previously from $68.00) on shares of Nike in a research report on Tuesday, August 29th. Vetr upgraded Nike from a buy rating to a strong-buy rating and set a $59.09 price objective on the stock in a research note on Wednesday, September 6th. Telsey Advisory Group decreased their price objective on Nike from $63.00 to $61.00 and set an outperform rating on the stock in a research note on Wednesday, August 30th. Argus upgraded Nike from a hold rating to a buy rating and boosted their price objective for the company from $50.35 to $64.46 in a research note on Thursday, December 14th. Finally, Wells Fargo & Company reiterated a market perform rating and set a $55.00 price objective (down from $56.00) on shares of Nike in a research note on Tuesday, September 19th. Four equities research analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and twenty-two have assigned a buy rating to the stock. The stock currently has an average rating of Hold and an average price target of $63.57.
Shares of Nike (NYSE:NKE) traded down $1.48 during trading on Wednesday, reaching $63.29. The company’s stock had a trading volume of 20,409,359 shares, compared to its average volume of 9,997,224. The company has a quick ratio of 1.81, a current ratio of 2.67 and a debt-to-equity ratio of 0.29. Nike has a 12-month low of $50.35 and a 12-month high of $65.18. The firm has a market capitalization of $105,673.35, a PE ratio of 27.40, a PEG ratio of 3.04 and a beta of 0.64.
Nike (NYSE:NKE) last announced its quarterly earnings data on Thursday, December 21st. The footwear maker reported $0.46 EPS for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.06. The firm had revenue of $8.55 billion during the quarter, compared to analysts’ expectations of $8.39 billion. Nike had a return on equity of 31.24% and a net margin of 11.13%. The company’s revenue for the quarter was up 4.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.50 earnings per share. analysts expect that Nike will post 2.28 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, January 2nd. Shareholders of record on Monday, December 4th will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 1.26%. This is an increase from Nike’s previous quarterly dividend of $0.18. The ex-dividend date of this dividend is Friday, December 1st. Nike’s dividend payout ratio (DPR) is currently 34.63%.
In related news, EVP Monique S. Matheson sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, December 11th. The stock was sold at an average price of $62.00, for a total value of $620,000.00. Following the completion of the sale, the executive vice president now owns 23,248 shares in the company, valued at $1,441,376. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Mark G. Parker sold 135,000 shares of the business’s stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $55.03, for a total value of $7,429,050.00. Following the completion of the sale, the chairman now owns 1,637,736 shares of the company’s stock, valued at approximately $90,124,612.08. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 290,094 shares of company stock worth $17,480,160. Company insiders own 3.90% of the company’s stock.
Hedge funds have recently modified their holdings of the company. Asset Planning Services Ltd. boosted its stake 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 worth $126,000 after acquiring an additional 7 shares in the last quarter. Willingdon Wealth Management acquired a new stake in Nike in the 3rd quarter valued at about $114,000. Atlantic Trust LLC acquired a new stake in Nike in the 2nd quarter valued at about $136,000. Kistler Tiffany Companies LLC raised its holdings in Nike by 91.7% in the 2nd quarter. Kistler Tiffany Companies LLC now owns 2,527 shares of the footwear maker’s stock valued at $149,000 after acquiring an additional 1,209 shares during the last quarter. Finally, Howe & Rusling Inc. increased 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 worth $137,000 after buying an additional 2,329 shares during the last quarter. 62.56% of the stock is currently owned by institutional investors and hedge funds.
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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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