NIKE (NYSE:NKE) Shares Climb 1.2% – Time to Buy?

NIKE, Inc. (NYSE:NKE) shares shot up 1.2% during mid-day trading on Thursday. The company traded as high as $34.87 and last traded at $34.7610. Approximately 43,313,419 shares were traded during mid-day trading, an increase of 76% from the average daily volume of 24,674,582 shares. The stock had previously closed at $34.36.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE reported quarterly earnings of $0.48 per share, above the $0.43 analyst consensus. Management’s turnaround efforts, including a focus on higher-quality products and a tighter supply chain, could support longer-term recovery. NIKE’s Shares Fall More Than 2% Post Q1 Earnings: What’s Ahead?
• Positive Sentiment: Reports that NIKE may return to Formula One sponsorships in 2027 offer a potential brand-building and growth opportunity as the company seeks to regain momentum. NIKE Eyes Bringing the Swoosh Back to Formula 1
• Neutral Sentiment: NIKE’s dividend yield has risen to roughly 4.8%, attracting income-oriented investors. However, commentary notes that projected fiscal 2027 earnings may fall below the dividend, making cash flow, balance-sheet strength and management’s payout commitment important areas to monitor. Nike Guided Earnings Below Its Dividend
• Negative Sentiment: Revenue fell 4.3% year over year to $11.21 billion, missing estimates, while management’s fiscal 2027 guidance signals continued pressure. Analysts and commentators describe the turnaround as prolonged, with major franchises and overall sales still losing momentum. 1 Stat That Makes Nike Hard to Ignore This October
• Negative Sentiment: Greater China remains the key concern, with falling sales and a difficult Chinese consumer environment weighing on the investment case. NIKE also reduced the detail it provides on regional and China performance in its latest filing, which may increase investor uncertainty. Why Is Nike Giving Investors Less Insight Into China Sales?
• Negative Sentiment: Berenberg downgraded NIKE from “hold” to “strong sell,” adding to bearish commentary about valuation and the company’s declining revenue base. NIKE’s Shares Fall More Than 2% Post Q1 Earnings

Wall Street Analyst Weigh In

NKE has been the subject of several research reports. Weiss Ratings downgraded NIKE from a “sell (d+)” rating to a “sell (d)” rating in a report on Tuesday. BMO Capital Markets reiterated an “underperform” rating and issued a $25.00 price objective on shares of NIKE in a report on Friday, October 2nd. BTIG Research dropped their price objective on shares of NIKE from $55.00 to $50.00 and set a “buy” rating on the stock in a research report on Friday, October 2nd. Deutsche Bank Aktiengesellschaft cut their target price on shares of NIKE from $45.00 to $37.00 and set a “hold” rating for the company in a research note on Monday, September 28th. Finally, Argus raised shares of NIKE to a “strong-buy” rating in a report on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twenty-one have assigned a Hold rating and ten have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce” and an average price target of $41.19.

NIKE Stock Up 1.2%

The stock’s fifty day simple moving average is $38.37 and its 200-day simple moving average is $42.38. The stock has a market cap of $51.57 billion, a P/E ratio of 16.71, a P/E/G ratio of 3.04 and a beta of 1.09. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.39 and a current ratio of 2.07.

NIKE (NYSE:NKE) last announced its earnings results on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, topping the consensus estimate of $0.43 by $0.05. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The company had revenue of $11.21 billion for the quarter, compared to analysts’ expectations of $11.32 billion. During the same period last year, the firm earned $0.49 earnings per share. The business’s revenue for the quarter was down 4.3% on a year-over-year basis. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. As a group, research analysts forecast that NIKE, Inc. will post 1.26 earnings per share for the current fiscal year.

NIKE Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st were issued a $0.41 dividend. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $1.64 annualized dividend and a yield of 4.7%. NIKE’s payout ratio is currently 78.85%.

Insider Buying and Selling

In other news, COO Venkatesh Alagirisamy sold 3,671 shares of the company’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total transaction of $137,992.89. Following the completion of the sale, the chief operating officer directly owned 104,862 shares in the company, valued at approximately $3,941,762.58. This represents a 3.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Philip McCartney sold 2,559 shares of the stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $96,192.81. Following the sale, the executive vice president directly owned 78,121 shares in the company, valued at approximately $2,936,568.39. This trade represents a 3.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,974 shares of company stock valued at $600,126 over the last 90 days. 1.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On NIKE

Hedge funds have recently bought and sold shares of the company. Scarborough Advisors LLC bought a new position in NIKE in the first quarter valued at approximately $25,000. Cornerstone Financial Management LLC bought a new stake in NIKE during the fourth quarter worth $26,000. Sankala Group LLC acquired a new stake in shares of NIKE in the 4th quarter valued at $26,000. Meeder Asset Management Inc. increased its stake in shares of NIKE by 108.4% in the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock valued at $29,000 after purchasing an additional 285 shares during the last quarter. Finally, Atlas Wealth LLC bought a new position in shares of NIKE in the 1st quarter valued at $31,000. 64.25% of the stock is owned by institutional investors.

About NIKE

NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.

The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.