Royal Bank of Canada Initiates Coverage on NIKE (NYSE:NKE)

Royal Bank of Canada began coverage on shares of NIKE (NYSE:NKEGet Rating) in a research note released on Thursday morning, The Fly reports. The brokerage issued an outperform rating and a $125.00 target price on the footwear maker’s stock.

Several other equities analysts have also recently issued reports on NKE. Exane BNP Paribas cut NIKE from an outperform rating to a neutral rating and set a $118.00 price objective on the stock. in a research report on Tuesday, August 9th. Morgan Stanley lowered their price objective on NIKE from $159.00 to $149.00 and set an overweight rating on the stock in a research report on Tuesday, June 28th. Credit Suisse Group set a $130.00 target price on shares of NIKE in a research note on Wednesday, June 29th. Barclays lowered shares of NIKE from an overweight rating to an equal weight rating and decreased their target price for the company from $125.00 to $110.00 in a research note on Tuesday. Finally, Stifel Nicolaus decreased their target price on shares of NIKE from $135.00 to $130.00 in a research note on Wednesday, July 20th. Eleven analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of Moderate Buy and an average price target of $132.77.

NIKE Stock Performance

Shares of NKE opened at $98.55 on Thursday. The company has a quick ratio of 1.84, a current ratio of 2.63 and a debt-to-equity ratio of 0.58. The business’s 50 day moving average price is $109.72 and its 200-day moving average price is $115.81. NIKE has a 52 week low of $97.83 and a 52 week high of $179.10. The stock has a market cap of $154.58 billion, a P/E ratio of 26.21, a P/E/G ratio of 2.17 and a beta of 1.03.

NIKE (NYSE:NKEGet Rating) last issued its quarterly earnings results on Monday, June 27th. The footwear maker reported $0.90 EPS for the quarter, topping analysts’ consensus estimates of $0.81 by $0.09. The firm had revenue of $12.20 billion for the quarter, compared to analysts’ expectations of $12.10 billion. NIKE had a return on equity of 40.74% and a net margin of 12.94%. The business’s revenue for the quarter was down .8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.93 EPS. Equities research analysts anticipate that NIKE will post 3.78 earnings per share for the current fiscal year.

NIKE declared that its Board of Directors has approved a stock repurchase program on Monday, June 27th that authorizes the company to repurchase $18.00 billion in outstanding shares. This repurchase authorization authorizes the footwear maker to repurchase up to 11% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

NIKE Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, October 3rd. Shareholders of record on Tuesday, September 6th will be issued a $0.305 dividend. The ex-dividend date of this dividend is Friday, September 2nd. This represents a $1.22 annualized dividend and a yield of 1.24%. NIKE’s payout ratio is 32.45%.

Insider Transactions at NIKE

In related news, CFO Matthew Friend sold 4,139 shares of the company’s stock in a transaction that occurred on Wednesday, August 3rd. The shares were sold at an average price of $113.42, for a total transaction of $469,445.38. Following the sale, the chief financial officer now directly owns 56,539 shares of the company’s stock, valued at approximately $6,412,653.38. The sale was disclosed in a legal filing with the SEC, which is available through this link. In related news, CFO Matthew Friend sold 4,139 shares of the stock in a transaction on Wednesday, August 3rd. The shares were sold at an average price of $113.42, for a total value of $469,445.38. Following the transaction, the chief financial officer now directly owns 56,539 shares of the company’s stock, valued at approximately $6,412,653.38. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director John W. Rogers, Jr. bought 10,000 shares of the company’s stock in a transaction that occurred on Thursday, June 30th. The stock was bought at an average cost of $102.96 per share, for a total transaction of $1,029,600.00. Following the completion of the transaction, the director now directly owns 25,681 shares in the company, valued at $2,644,115.76. The disclosure for this purchase can be found here. In the last three months, insiders have sold 59,561 shares of company stock worth $6,374,094. 0.40% of the stock is currently owned by insiders.

Institutional Trading of NIKE

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Prestige Wealth Management Group LLC increased its holdings in NIKE by 3.2% during the 4th quarter. Prestige Wealth Management Group LLC now owns 2,292 shares of the footwear maker’s stock valued at $382,000 after acquiring an additional 70 shares in the last quarter. Vectors Research Management LLC lifted its position in NIKE by 11.3% during the fourth quarter. Vectors Research Management LLC now owns 708 shares of the footwear maker’s stock valued at $118,000 after buying an additional 72 shares in the last quarter. Wealthquest Corp lifted its position in NIKE by 2.1% during the fourth quarter. Wealthquest Corp now owns 3,786 shares of the footwear maker’s stock valued at $631,000 after buying an additional 79 shares in the last quarter. Bank of New Hampshire lifted its position in NIKE by 0.6% during the first quarter. Bank of New Hampshire now owns 13,282 shares of the footwear maker’s stock valued at $1,787,000 after buying an additional 80 shares in the last quarter. Finally, Gilman Hill Asset Management LLC lifted its position in shares of NIKE by 1.8% during the first quarter. Gilman Hill Asset Management LLC now owns 4,777 shares of the footwear maker’s stock worth $643,000 after purchasing an additional 84 shares in the last quarter. Institutional investors and hedge funds own 64.19% of the company’s stock.

NIKE Company Profile

(Get Rating)

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells men's, women's, and kids athletic footwear, apparel, equipment, and accessories 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.

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Analyst Recommendations for NIKE (NYSE:NKE)

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