NIKE (NYSE:NKE) Shares Gap Down After Analyst Downgrade

NIKE, Inc. (NYSE:NKE) gapped down prior to trading on Friday after Bank of America lowered their price target on the stock from $84.00 to $73.00. The stock had previously closed at $65.63, but opened at $59.20. Bank of America currently has a buy rating on the stock. NIKE shares last traded at $59.4820, with a volume of 19,209,855 shares changing hands.

NKE has been the topic of a number of other research reports. Raymond James Financial reaffirmed a “market perform” rating on shares of NIKE in a research note on Monday. Oppenheimer reiterated an “outperform” rating on shares of NIKE in a report on Wednesday. TD Cowen raised NIKE from a “hold” rating to a “buy” rating and increased their target price for the stock from $62.00 to $85.00 in a research report on Wednesday, September 10th. Zacks Research upgraded NIKE from a “strong sell” rating to a “hold” rating in a research report on Tuesday, August 26th. Finally, BTIG Research reaffirmed a “buy” rating and issued a $100.00 price target on shares of NIKE in a research note on Friday, December 12th. Three research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $77.90.

Insider Transactions at NIKE

In related news, EVP Treasure Heinle sold 4,300 shares of the stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $71.27, for a total transaction of $306,461.00. Following the sale, the executive vice president directly owned 29,396 shares of the company’s stock, valued at approximately $2,095,052.92. This represents a 12.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Chairman Mark G. Parker sold 86,078 shares of the stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $64.80, for a total transaction of $5,577,854.40. Following the sale, the chairman owned 647,615 shares in the company, valued at approximately $41,965,452. The trade was a 11.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.80% of the company’s stock.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Q2 beat on revenue and EPS: Nike posted revenue of about $12.4B and EPS of $0.53, topping consensus — evidence the turnaround has traction in parts of the business. Press Release
• Positive Sentiment: North America and wholesale strength: North America sales rose (~9%) and wholesale grew (~8%), and running product continued strong double‑digit growth — positives for recovery in core categories. CNBC: Earnings Coverage
• Neutral Sentiment: Management: “Middle innings” messaging — Nike says the turnaround is still early and outlined steps to reduce tariff impact over time; that suggests progress but not immediate relief. MarketWatch
• Negative Sentiment: Margin pressure and tariff headwinds: Gross margin fell ~300 bps (to ~40.6%) due to discounting and tariffs; company expects further gross‑margin contraction next quarter, and has cited substantial tariff costs — a key reason investors sold off. Blockonomi: Margin Pressure
• Negative Sentiment: China weakness: Greater China revenue plunged (reported ~mid-to-high teens decline, footwear worse), and Nike’s direct digital sales in China fell sharply — undermining growth assumptions for a major market. Reuters: China Conundrum
• Negative Sentiment: Lower guidance and analyst reaction: Nike warned of low‑single digit revenue decline next quarter and margin contraction; several analysts trimmed price targets and cut forecasts, amplifying downside sentiment. Benzinga: Analyst Cuts

Institutional Investors Weigh In On NIKE

Several institutional investors have recently modified their holdings of NKE. Mascoma Wealth Management LLC purchased a new position in NIKE in the 2nd quarter worth about $26,000. Halbert Hargrove Global Advisors LLC grew its stake in shares of NIKE by 952.6% in the second quarter. Halbert Hargrove Global Advisors LLC now owns 400 shares of the footwear maker’s stock worth $28,000 after acquiring an additional 362 shares during the period. Saudi Central Bank purchased a new position in shares of NIKE during the first quarter valued at approximately $30,000. Matrix Trust Co lifted its position in NIKE by 53.1% during the second quarter. Matrix Trust Co now owns 441 shares of the footwear maker’s stock valued at $31,000 after purchasing an additional 153 shares during the period. Finally, Twin Peaks Wealth Advisors LLC purchased a new stake in NIKE in the second quarter worth approximately $31,000. 64.25% of the stock is owned by hedge funds and other institutional investors.

NIKE Stock Down 8.7%

The company has a quick ratio of 1.45, a current ratio of 2.19 and a debt-to-equity ratio of 0.59. The company has a market cap of $88.60 billion, a PE ratio of 30.79, a PEG ratio of 2.32 and a beta of 1.29. The company’s fifty day moving average is $65.18 and its 200-day moving average is $69.41.

NIKE (NYSE:NKE) last released its quarterly earnings results on Thursday, December 18th. The footwear maker reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.16. The firm had revenue of $12.43 billion for the quarter, compared to analysts’ expectations of $12.19 billion. NIKE had a return on equity of 21.16% and a net margin of 6.23%.The company’s revenue was up .6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.78 EPS. On average, analysts predict that NIKE, Inc. will post 2.05 EPS for the current year.

NIKE Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 2nd. Shareholders of record on Monday, December 1st will be given a $0.41 dividend. The ex-dividend date of this dividend is Monday, December 1st. This is a positive change from NIKE’s previous quarterly dividend of $0.40. This represents a $1.64 annualized dividend and a yield of 2.7%. NIKE’s payout ratio is 84.10%.

About NIKE

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.