Zacks Investment Research Upgrades Nike, Inc. (NKE) to Hold
Nike, Inc. (NYSE:NKE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Friday.
According to Zacks, “NIKE’s robust growth and innovation efforts have been reflected in every quarter’s results for over three fiscal years now. The company’s last reported quarter gained from strength in international business and the global NIKE Direct business. Also, NIKE has been focused on its Consumer Direct Offense plan. 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. However, the company has lagged the industry in the past three months due to lackluster sales in its key North American market. Notably, sales in the region dipped 3% in first-quarter fiscal 2018, wherein the gross margin was hurt by currency woes and a higher mix of off-price sales. The company anticipates near-term results to be hurt by the tough retail environment, which led to a bleak second quarter view.”
A number of other equities analysts have also recently issued reports on NKE. Vetr raised Nike from a “hold” rating to a “buy” rating and set a $55.06 target price for the company in a report on Thursday, June 15th. J P Morgan Chase & Co cut Nike from an “overweight” rating to a “neutral” rating and dropped their target price for the stock from $61.00 to $58.00 in a report on Friday, June 16th. Goldman Sachs Group, Inc. (The) set a $62.00 target price on Nike and gave the stock a “buy” rating in a report on Friday, June 16th. Robert W. Baird reissued an “outperform” rating and issued a $62.00 target price on shares of Nike in a report on Friday, June 16th. Finally, Barclays PLC reissued an “overweight” rating and issued a $65.00 target price on shares of Nike in a report on Monday, June 19th. Four investment analysts have rated the stock with a sell rating, eighteen have issued a hold rating, twenty have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $59.14.
Shares of Nike (NYSE:NKE) traded up 0.30% on Friday, reaching $50.98. The company had a trading volume of 16,227,948 shares. Nike has a 12 month low of $49.01 and a 12 month high of $60.53. The company’s 50-day moving average is $52.64 and its 200 day moving average is $54.81. The firm has a market capitalization of $83.56 billion, a PE ratio of 21.70 and a beta of 0.61.
Nike (NYSE:NKE) last issued its earnings results on Tuesday, September 26th. The footwear maker reported $0.57 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.48 by $0.09. Nike had a return on equity of 31.88% and a net margin of 11.47%. The business had revenue of $9.07 billion during the quarter, compared to analysts’ expectations of $9.08 billion. During the same period in the prior year, the firm posted $0.73 EPS. Nike’s quarterly revenue was up .1% compared to the same quarter last year. Equities analysts forecast that Nike will post $2.32 earnings per share for the current year.
In other Nike news, insider Eric D. Sprunk sold 112,323 shares of the business’s stock in a transaction that occurred on Friday, July 28th. The stock was sold at an average price of $58.61, for a total transaction of $6,583,251.03. Following the transaction, the insider now owns 139,551 shares of the company’s stock, valued at $8,179,084.11. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Johnathan A. Rodgers sold 16,000 shares of the business’s stock in a transaction that occurred on Thursday, September 14th. The stock was sold at an average price of $53.45, for a total value of $855,200.00. Following the transaction, the director now directly owns 25,660 shares in the company, valued at approximately $1,371,527. The disclosure for this sale can be found here. In the last ninety days, insiders sold 134,045 shares of company stock worth $7,778,338. 3.90% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the business. V Wealth Management LLC acquired a new position in Nike during the second quarter worth approximately $100,000. Asset Planning Services Ltd. increased its position in Nike by 0.3% during the second quarter. Asset Planning Services Ltd. now owns 2,132 shares of the footwear maker’s stock worth $126,000 after buying an additional 7 shares during the last quarter. Atlantic Trust LLC acquired a new position in Nike during the second quarter worth approximately $136,000. Rational Advisors LLC increased its position in Nike by 14.3% during the first quarter. Rational Advisors LLC now owns 2,572 shares of the footwear maker’s stock worth $143,000 after buying an additional 321 shares during the last quarter. Finally, Kistler Tiffany Companies LLC increased its position in Nike by 91.7% during the second quarter. Kistler Tiffany Companies LLC now owns 2,527 shares of the footwear maker’s stock worth $149,000 after buying an additional 1,209 shares during the last quarter. 62.63% of the stock is currently owned by hedge funds and other institutional investors.
Nike Company Profile
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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