NIKE (NYSE:NKE) Hits New 52-Week Low – What’s Next?

NIKE, Inc. (NYSE:NKE) hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $42.09 and last traded at $42.2170, with a volume of 2942746 shares changing hands. The stock had previously closed at $42.39.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Sanford C. Bernstein reaffirmed its Buy rating on NIKE, which suggests at least some analysts still see upside in the stock despite recent weakness. MarketScreener
• Positive Sentiment: NIKE’s retail reset could eventually support margin recovery if the company succeeds in shifting toward more full-price selling and fewer promotions, a potential long-term positive for earnings. Yahoo Finance
• Neutral Sentiment: Coverage about NIKE’s retail pivot and clearance strategy highlights an ongoing turnaround effort, but the investment impact is still uncertain until sales and margin trends improve. Zacks
• Negative Sentiment: On Holding reported a record quarter, raised guidance, and cited strong momentum in China and apparel, adding to competitive pressure on NIKE in the premium athleticwear market. CNBC
• Negative Sentiment: Reports that On Holding is taking share and facing an “aggressive Nike fightback” underscore the intensity of the competitive battle and may worry investors about NIKE’s growth outlook. Proactive Investors
• Negative Sentiment: NIKE customers have filed a lawsuit seeking tariff-related refunds, which adds legal and reputational risk tied to pricing and tariffs. PYMNTS

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. Telsey Advisory Group dropped their price objective on shares of NIKE from $65.00 to $55.00 and set a “market perform” rating on the stock in a research note on Wednesday, April 1st. Berenberg Bank reaffirmed a “neutral” rating on shares of NIKE in a research note on Wednesday, May 6th. Williams Trading decreased their price objective on NIKE from $80.00 to $57.00 and set a “buy” rating for the company in a research report on Wednesday, April 1st. BNP Paribas Exane dropped their target price on NIKE from $35.00 to $23.00 and set an “underperform” rating on the stock in a report on Wednesday, April 1st. Finally, Wall Street Zen downgraded NIKE from a “hold” rating to a “sell” rating in a report on Saturday, April 18th. Sixteen analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, NIKE currently has a consensus rating of “Hold” and a consensus price target of $62.04.

NIKE Stock Performance

The firm has a market cap of $62.81 billion, a PE ratio of 28.04, a P/E/G ratio of 2.34 and a beta of 1.12. The stock has a 50-day moving average price of $49.35 and a 200 day moving average price of $58.79. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.14 and a quick ratio of 1.45.

NIKE (NYSE:NKE) last posted its quarterly earnings results on Tuesday, March 31st. The footwear maker reported $0.35 EPS for the quarter, beating the consensus estimate of $0.29 by $0.06. The company had revenue of $11.28 billion during the quarter, compared to analysts’ expectations of $11.23 billion. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The firm’s revenue was up .1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.54 EPS. Research analysts forecast that NIKE, Inc. will post 1.51 earnings per share for the current year.

NIKE Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be issued a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date is Monday, June 1st. NIKE’s dividend payout ratio (DPR) is 108.61%.

Insider Transactions at NIKE

In other NIKE news, Director Timothy D. Cook purchased 25,000 shares of the business’s stock in a transaction that occurred on Friday, April 10th. The shares were purchased at an average price of $42.43 per share, for a total transaction of $1,060,750.00. Following the completion of the acquisition, the director owned 130,480 shares of the company’s stock, valued at approximately $5,536,266.40. This represents a 23.70% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John W. Rogers, Jr. bought 4,000 shares of the business’s stock in a transaction dated Thursday, April 9th. The stock was acquired at an average cost of $43.34 per share, for a total transaction of $173,360.00. Following the purchase, the director owned 41,022 shares in the company, valued at approximately $1,777,893.48. This trade represents a 10.80% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders acquired 64,441 shares of company stock valued at $2,734,204. 0.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of NKE. Main Street Financial Solutions LLC grew its position in shares of NIKE by 4.2% during the second quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker’s stock worth $244,000 after buying an additional 139 shares in the last quarter. Diligent Investors LLC boosted its stake in NIKE by 4.3% during the 4th quarter. Diligent Investors LLC now owns 3,719 shares of the footwear maker’s stock valued at $237,000 after acquiring an additional 153 shares during the last quarter. CVA Family Office LLC boosted its stake in NIKE by 8.0% during the 3rd quarter. CVA Family Office LLC now owns 2,113 shares of the footwear maker’s stock valued at $147,000 after acquiring an additional 156 shares during the last quarter. Naples Global Advisors LLC grew its holdings in NIKE by 1.9% during the 3rd quarter. Naples Global Advisors LLC now owns 8,514 shares of the footwear maker’s stock worth $597,000 after acquiring an additional 159 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA grew its holdings in NIKE by 4.3% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 3,978 shares of the footwear maker’s stock worth $253,000 after acquiring an additional 163 shares in the last quarter. Hedge funds and other institutional investors own 64.25% of the company’s stock.

NIKE Company Profile

Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).