Nike Inc. (NKE) Upgraded to “Hold” by Zacks Investment Research
According to Zacks, “Nike’s customer-centric approach, innovative products and strong portfolio has helped strengthened its position in the footwear and athletic apparel industry. The company also continues to seek opportunities for increasing its market share via acquisitions, contracts to supply sports-related assortments, and development of its eCommerce and DTC business model. Nike’s strategic initiatives are well reflected from its positive earnings surprise streak over the past 16 straight quarters. However, top line has been missing estimates for quite some time due to adverse currency movements. Evidently, the company expects lingering currency woes to strongly hurt revenues in first-half fiscal 2017. Also, the company’s future orders witnessed a considerable slowdown and lagged expectations in the fourth quarter due to stiff competition from rivals. Estimates have been stable ahead of the company’s first-quarter earnings release.”
NKE has been the topic of several other research reports. Morgan Stanley restated a hold rating and issued a $60.00 target price on shares of Nike in a research note on Wednesday. Cowen and Company set a $63.00 target price on shares of Nike and gave the company a buy rating in a research note on Tuesday, September 13th. Jefferies Group restated a buy rating on shares of Nike in a research note on Monday, September 12th. Piper Jaffray Cos. downgraded shares of Nike from an overweight rating to a neutral rating and boosted their target price for the company from $57.72 to $58.00 in a research note on Thursday, September 8th. Finally, B. Riley downgraded shares of Nike from a buy rating to a neutral rating and upped their price target for the stock from $58.66 to $62.00 in a research report on Friday, August 26th. Two analysts have rated the stock with a sell rating, ten have given a hold rating and twenty-two have issued a buy rating to the company’s stock. The company has an average rating of Buy and an average target price of $65.63.
Shares of Nike (NYSE:NKE) traded down 0.36% during trading on Thursday, hitting $55.21. 1,765,304 shares of the stock traded hands. The company has a 50 day moving average of $56.84 and a 200-day moving average of $57.45. Nike has a 1-year low of $51.48 and a 1-year high of $68.19. The company has a market cap of $92.62 billion, a PE ratio of 25.56 and a beta of 0.52.
Nike (NYSE:NKE) last issued its earnings results on Tuesday, June 28th. The footwear maker reported $0.49 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.48 by $0.01. Nike had a net margin of 11.61% and a return on equity of 29.57%. The company had revenue of $8.24 billion for the quarter, compared to the consensus estimate of $8.28 billion. During the same quarter in the previous year, the company earned $0.49 EPS. The firm’s revenue for the quarter was up 6.0% compared to the same quarter last year. On average, equities analysts anticipate that Nike will post $2.40 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, October 3rd. Investors of record on Tuesday, September 6th will be given a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.16%. The ex-dividend date of this dividend is Thursday, September 1st. Nike’s payout ratio is currently 29.63%.
In other Nike news, Director John C. Lechleiter acquired 1,000 shares of Nike stock in a transaction that occurred on Friday, July 1st. The shares were acquired at an average cost of $55.09 per share, with a total value of $55,090.00. Following the completion of the purchase, the director now directly owns 23,682 shares of the company’s stock, valued at approximately $1,304,641.38. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP John F. Slusher sold 72,696 shares of the firm’s stock in a transaction dated Tuesday, July 26th. The shares were sold at an average price of $57.75, for a total value of $4,198,194.00. Following the completion of the sale, the executive vice president now directly owns 231,861 shares in the company, valued at $13,389,972.75. The disclosure for this sale can be found here. 3.90% of the stock is owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in NKE. Bath Savings Trust Co raised its stake in Nike by 5.4% in the first quarter. Bath Savings Trust Co now owns 197,009 shares of the footwear maker’s stock valued at $12,110,000 after buying an additional 10,090 shares during the period. Heritage Investors Management Corp raised its stake in shares of Nike by 1.9% in the first quarter. Heritage Investors Management Corp now owns 257,815 shares of the footwear maker’s stock worth $15,848,000 after buying an additional 4,793 shares during the last quarter. Eastern Bank raised its stake in shares of Nike by 1,707.0% in the first quarter. Eastern Bank now owns 172,031 shares of the footwear maker’s stock worth $10,575,000 after buying an additional 162,511 shares during the last quarter. Quotient Investors LLC raised its stake in shares of Nike by 298.8% in the first quarter. Quotient Investors LLC now owns 14,773 shares of the footwear maker’s stock worth $908,000 after buying an additional 11,069 shares during the last quarter. Finally, Jacobs & Co. CA raised its stake in shares of Nike by 14.9% in the first quarter. Jacobs & Co. CA now owns 82,501 shares of the footwear maker’s stock worth $5,071,000 after buying an additional 10,710 shares during the last quarter. 62.04% of the stock is currently owned by institutional investors and hedge funds.
Nike Company Profile
NIKE, Inc is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet Websites (which the Company refers to as its Direct to Consumer or DTC operations), and through a mix of independent distributors and licensees throughout the world.
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