Nike, Inc. (NKE) Upgraded to “Hold” by Zacks Investment Research
Zacks Investment Research upgraded shares of Nike, Inc. (NYSE:NKE) from a sell rating to a hold rating in a research report report published on Monday.
According to Zacks, “To counter consumer shift toward online shopping, Nike unveiled a new company alignment – the Consumer Direct Offense. 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. These regions include 12 key cities which are expected to account for over 80% of Nike’s previously forecasted growth, till 2020. The company expects these changes to result in a 2% cut in its global workforce, leading to about 1,400 layoffs. Nike’s shares have lagged the broader sector year to date. Incidentally, the company’s top-line fell prey to stiff competition and a tough retail backdrop in the last reported quarter. These factors, along with lingering currency woes also caused a soft sales view for fourth-quarter fiscal 2017. However, estimates have been stable ahead of earnings.”
NKE has been the topic of several other reports. Goldman Sachs Group, Inc. (The) reiterated a buy rating and set a $62.00 target price on shares of Nike in a research report on Tuesday, April 18th. Deutsche Bank AG reiterated a buy rating and set a $64.00 target price on shares of Nike in a research report on Saturday, April 22nd. Jefferies Group LLC reiterated a buy rating and set a $75.00 target price on shares of Nike in a research report on Friday, May 5th. Berenberg Bank initiated coverage on shares of Nike in a research report on Tuesday, May 16th. They set a buy rating and a $70.00 target price on the stock. Finally, Vetr upgraded shares of Nike from a buy rating to a strong-buy rating and set a $63.24 target price on the stock in a research report on Wednesday, March 22nd. Two research analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and twenty-one have given a buy rating to the stock. Nike currently has an average rating of Hold and an average target price of $60.71.
Shares of Nike (NKE) traded down 0.932% during trading on Monday, hitting $51.535. 3,385,471 shares of the stock were exchanged. Nike has a 52 week low of $49.01 and a 52 week high of $60.33. The firm has a 50 day moving average price of $53.24 and a 200 day moving average price of $54.21. The firm has a market capitalization of $85.07 billion, a P/E ratio of 21.500 and a beta of 0.47.
Nike (NYSE:NKE) last posted its quarterly earnings results on Tuesday, March 21st. The footwear maker reported $0.68 earnings per share for the quarter, beating analysts’ consensus estimates of $0.53 by $0.15. Nike had a net margin of 12.02% and a return on equity of 32.97%. The company had revenue of $8.43 billion for the quarter, compared to the consensus estimate of $8.47 billion. During the same period last year, the company posted $0.55 EPS. The firm’s quarterly revenue was up 5.0% compared to the same quarter last year. Analysts forecast that Nike will post $2.41 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 5th. Shareholders of record on Monday, June 5th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.38%. The ex-dividend date is Thursday, June 1st. Nike’s dividend payout ratio (DPR) is presently 30.00%.
In other news, Chairman Mark G. Parker sold 100,000 shares of the company’s stock in a transaction dated Monday, April 3rd. The stock was sold at an average price of $55.50, for a total transaction of $5,550,000.00. Following the sale, the chairman now directly owns 1,966,235 shares in the company, valued at $109,126,042.50. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Eric D. Sprunk sold 50,000 shares of the company’s stock in a transaction dated Friday, March 24th. The shares were sold at an average price of $55.67, for a total value of $2,783,500.00. Following the sale, the insider now owns 300,108 shares in the company, valued at $16,707,012.36. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 379,000 shares of company stock worth $21,213,800. Insiders own 3.90% of the company’s stock.
Several large investors have recently made changes to their positions in the stock. Mission Wealth Management LLC boosted its stake in shares of Nike by 128.2% in the fourth quarter. Mission Wealth Management LLC now owns 10,462 shares of the footwear maker’s stock valued at $532,000 after buying an additional 5,878 shares in the last quarter. First Command Bank bought a new stake in shares of Nike during the fourth quarter valued at $128,000. First Interstate Bank boosted its stake in shares of Nike by 1,599.8% in the fourth quarter. First Interstate Bank now owns 99,167 shares of the footwear maker’s stock valued at $5,041,000 after buying an additional 93,333 shares in the last quarter. Essex Financial Services Inc. boosted its stake in shares of Nike by 8.9% in the fourth quarter. Essex Financial Services Inc. now owns 16,856 shares of the footwear maker’s stock valued at $857,000 after buying an additional 1,383 shares in the last quarter. Finally, Artemis Investment Management LLP boosted its stake in shares of Nike by 7.2% in the fourth quarter. Artemis Investment Management LLP now owns 268,698 shares of the footwear maker’s stock valued at $13,659,000 after buying an additional 18,155 shares in the last quarter. Hedge funds and other institutional investors own 65.55% of the company’s stock.
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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