Nike’s (NKE) Buy Rating Reaffirmed at Guggenheim
Guggenheim restated their buy rating on shares of Nike (NYSE:NKE) in a research note released on Thursday, AnalystRatings.com reports. The brokerage currently has a $100.00 target price on the footwear maker’s stock.
“We expect China to be a major focus for management, both in regards to the current trade tensions and consumer demand in the region. NKE remains a global company, with a diverse sourcing, manufacturing, and selling footprint. While China remains a significant portion of the company’s manufacturing base and we expect the region to account for ~18% of Nike brand revenue in FY20E, we believe NKE is one the best positioned companies to navigate the current environment. Over the years, NKE has invested in and fostered a strong relationship with both the Chinese consumer and government, demonstrated by the robust growth over the past three years (added +$2.4bn in top line from FY16-FY19). While concerns are warranted given the size and the scope, we remain confident in NKE/management’s ability to drive continued outperformance.”,” Guggenheim’s analyst commented.
Several other research analysts have also recently issued reports on NKE. JPMorgan Chase & Co. increased their price target on shares of Nike from $90.00 to $100.00 and gave the stock an overweight rating in a report on Tuesday, July 9th. Canaccord Genuity reissued a buy rating and set a $96.00 price target on shares of Nike in a report on Wednesday, June 19th. Macquarie set a $89.00 price target on shares of Nike and gave the stock a buy rating in a report on Friday, June 28th. Credit Suisse Group reissued a buy rating and set a $97.00 price target on shares of Nike in a report on Friday, June 28th. Finally, Pivotal Research set a $101.00 price target on shares of Nike and gave the stock a buy rating in a report on Friday, June 28th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and twenty-one have issued a buy rating to the stock. The stock has an average rating of Buy and a consensus target price of $90.29.
Nike (NYSE:NKE) last posted its quarterly earnings results on Thursday, June 27th. The footwear maker reported $0.62 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.66 by ($0.04). The firm had revenue of $10.18 billion for the quarter, compared to analysts’ expectations of $10.15 billion. Nike had a return on equity of 45.12% and a net margin of 10.30%. The company’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.69 earnings per share. On average, equities research analysts expect that Nike will post 2.89 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Monday, September 30th. Shareholders of record on Tuesday, September 3rd will be given a dividend of $0.22 per share. The ex-dividend date of this dividend is Friday, August 30th. This represents a $0.88 annualized dividend and a yield of 1.02%. Nike’s payout ratio is currently 35.34%.
In other news, CAO Hilary K. Krane sold 17,903 shares of the stock in a transaction that occurred on Friday, July 12th. The shares were sold at an average price of $88.70, for a total value of $1,587,996.10. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Elizabeth J. Comstock sold 24,000 shares of the stock in a transaction that occurred on Tuesday, July 2nd. The shares were sold at an average price of $84.84, for a total transaction of $2,036,160.00. Following the completion of the sale, the director now owns 38,813 shares in the company, valued at $3,292,894.92. The disclosure for this sale can be found here. Insiders have sold 203,708 shares of company stock worth $17,556,051 over the last 90 days. 3.80% of the stock is currently owned by company insiders.
Hedge funds have recently added to or reduced their stakes in the company. Jackson Grant Investment Advisers Inc. acquired a new stake in shares of Nike in the first quarter valued at approximately $25,000. Shamrock Asset Management LLC acquired a new stake in shares of Nike in the first quarter valued at approximately $25,000. Thor Advisors LLC acquired a new stake in shares of Nike in the first quarter valued at approximately $26,000. Hexavest Inc. acquired a new stake in shares of Nike in the second quarter valued at approximately $30,000. Finally, Litman Gregory Asset Management LLC acquired a new stake in shares of Nike in the second quarter valued at approximately $31,000. Institutional investors and hedge funds own 65.04% of the company’s stock.
Nike Company Profile
NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories: running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, lacrosse, skateboarding, tennis, volleyball, wrestling, walking, and outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel.
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