NIKE (NYSE:NKE) Trading Down 1% After Analyst Downgrade

NIKE, Inc. (NYSE:NKE)’s share price dropped 1% during trading on Monday after Telsey Advisory Group lowered their price target on the stock from $80.00 to $70.00. Telsey Advisory Group currently has a market perform rating on the stock. NIKE traded as low as $57.29 and last traded at $58.01. Approximately 4,586,674 shares traded hands during mid-day trading, a decline of 68% from the average daily volume of 14,526,930 shares. The stock had previously closed at $58.59.

Other research analysts also recently issued reports about the company. Robert W. Baird reduced their target price on NIKE from $105.00 to $99.00 and set an “outperform” rating for the company in a research note on Friday, March 21st. Wells Fargo & Company lowered NIKE from an “overweight” rating to an “equal weight” rating and reduced their target price for the stock from $75.00 to $55.00 in a report on Wednesday, April 30th. JPMorgan Chase & Co. cut their target price on NIKE from $64.00 to $56.00 and set a “neutral” rating for the company in a research note on Monday. Needham & Company LLC dropped their price objective on shares of NIKE from $84.00 to $80.00 and set a “buy” rating for the company in a research note on Monday, March 17th. Finally, Bank of America dropped their price objective on shares of NIKE from $90.00 to $80.00 and set a “buy” rating for the company in a report on Friday, April 25th. Seventeen investment analysts have rated the stock with a hold rating, fifteen have given a buy rating and two have given a strong buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $80.48.

Insider Buying and Selling at NIKE

In related news, Director Robert Holmes Swan purchased 8,600 shares of the firm’s stock in a transaction that occurred on Friday, April 4th. The shares were purchased at an average cost of $58.46 per share, with a total value of $502,756.00. Following the purchase, the director now owns 31,983 shares of the company’s stock, valued at $1,869,726.18. This represents a 36.78 % increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Mark G. Parker sold 169,732 shares of the stock in a transaction on Friday, February 14th. The shares were sold at an average price of $72.83, for a total value of $12,361,581.56. Following the completion of the transaction, the chairman now directly owns 896,632 shares of the company’s stock, valued at approximately $65,301,708.56. This represents a 15.92 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.10% of the company’s stock.

Institutional Trading of NIKE

Several institutional investors have recently made changes to their positions in the company. Doliver Advisors LP purchased a new position in shares of NIKE during the fourth quarter worth $252,000. Range Financial Group LLC acquired a new stake in NIKE in the fourth quarter valued at $642,000. International Assets Investment Management LLC acquired a new position in shares of NIKE during the 4th quarter worth about $512,000. Watts Gwilliam & Co. LLC purchased a new position in NIKE in the fourth quarter valued at approximately $326,000. Finally, Fortitude Family Office LLC grew its position in shares of NIKE by 6.1% in the 4th quarter. Fortitude Family Office LLC now owns 2,988 shares of the footwear maker’s stock valued at $226,000 after buying an additional 171 shares during the last quarter. Hedge funds and other institutional investors own 64.25% of the company’s stock.

NIKE Price Performance

The firm has a market capitalization of $84.54 billion, a PE ratio of 17.64, a P/E/G ratio of 2.52 and a beta of 1.23. The company has a fifty day moving average price of $63.70 and a two-hundred day moving average price of $71.72. The company has a current ratio of 2.22, a quick ratio of 1.51 and a debt-to-equity ratio of 0.57.

NIKE (NYSE:NKE) last announced its quarterly earnings data on Thursday, March 20th. The footwear maker reported $0.54 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.26. The company had revenue of $11.27 billion during the quarter, compared to the consensus estimate of $11.02 billion. NIKE had a net margin of 9.98% and a return on equity of 36.99%. NIKE’s quarterly revenue was down 9.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.98 EPS. Sell-side analysts forecast that NIKE, Inc. will post 2.05 earnings per share for the current year.

NIKE Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 1st. Investors of record on Monday, June 2nd will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 2.80%. The ex-dividend date of this dividend is Monday, June 2nd. NIKE’s payout ratio is currently 53.16%.

NIKE Company Profile

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.