NIKE (NYSE:NKE) Shares Up 1.7% – Here’s What Happened

NIKE, Inc. (NYSE:NKE)’s stock price shot up 1.7% on Tuesday. The company traded as high as $38.14 and last traded at $37.8360. Approximately 24,344,466 shares were traded during mid-day trading, a decline of 2% from the average session volume of 24,772,504 shares. The stock had previously closed at $37.21.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: BTIG reaffirms Buy rating: BTIG Research maintained its Buy rating and set a $50 price target, implying roughly 33% upside from the current share price. This signals confidence that Nike’s brand and turnaround efforts can eventually restore growth.
• Positive Sentiment: Dividend appeal remains strong: Nike has increased its dividend for nearly 25 years and now offers a forward yield of about 4.4%. The income stream may attract value-oriented investors, although the company has kept the dividend unchanged despite deteriorating operating results. All It Takes Is 1,220 Shares of Nike Stock to Generate $2,000 a Year in Dividends. Is It Worth It?
• Positive Sentiment: Additional analyst support: Argus Research also issued a Buy rating, adding to the case that Nike’s depressed valuation could offer substantial upside if its brand reset and wholesale recovery gain traction. Nike Gets a Buy from Argus Research
• Neutral Sentiment: Q2 estimates are being updated: Analysts have issued new forecasts for Nike’s fiscal second-quarter earnings, but the available report does not identify a significant estimate change or new company guidance. Analysts Issue Forecasts for NIKE’s Q2 Earnings
• Negative Sentiment: Turnaround remains unproven: Analysts and market commentary point to stagnant sales, weak recent results, restructuring costs and layoffs. Nike expects fiscal 2027 sales to decline, while investors are waiting for clearer evidence that its portfolio reset and brand strategy can reignite growth. Nike Restructuring And Layoffs Put Pressure On Turnaround And Portfolio Reset

Analyst Ratings Changes

Several research firms recently weighed in on NKE. Weiss Ratings lowered shares of NIKE from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday, October 6th. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $45.00 target price on shares of NIKE in a research note on Friday, October 2nd. Robert W. Baird lowered their target price on shares of NIKE from $44.00 to $36.00 and set a “neutral” rating for the company in a research note on Friday, October 2nd. Freedom Broker upgraded shares of NIKE from a “hold” rating to a “buy” rating and cut their target price for the stock from $54.00 to $51.00 in a report on Friday, October 2nd. Finally, Guggenheim reissued a “buy” rating and set a $50.00 price target (down from $60.00) on shares of NIKE in a research report on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twenty-one have issued a Hold rating and eleven have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus price target of $40.93.

NIKE Price Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 2.07 and a quick ratio of 1.39. The company’s 50-day moving average price is $37.25 and its 200-day moving average price is $41.35. The company has a market cap of $55.72 billion, a P/E ratio of 18.04, a P/E/G ratio of 4.44 and a beta of 1.09.

NIKE (NYSE:NKE) last announced its earnings results on Thursday, October 1st. The footwear maker reported $0.48 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.05. The firm had revenue of $11.21 billion during the quarter, compared to analyst estimates of $11.32 billion. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The company’s revenue for the quarter was down 4.3% compared to the same quarter last year. During the same period in the prior year, the business earned $0.49 EPS. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. As a group, sell-side analysts predict that NIKE, Inc. will post 1.22 earnings per share for the current fiscal year.

NIKE Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st were paid a $0.41 dividend. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $1.64 annualized dividend and a dividend yield of 4.4%. NIKE’s dividend payout ratio (DPR) is currently 78.85%.

Insider Transactions at NIKE

In related news, insider Amy Montagne sold 4,867 shares of the stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $42.05, for a total transaction of $204,657.35. Following the completion of the transaction, the insider directly owned 57,436 shares in the company, valued at approximately $2,415,183.80. This trade represents a 7.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Matthew Friend sold 2,463 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the transaction, the chief financial officer owned 82,165 shares of the company’s stock, valued at approximately $3,418,064. The trade was a 2.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NIKE

Several hedge funds have recently made changes to their positions in the business. Scarborough Advisors LLC acquired a new stake in shares of NIKE in the first quarter valued at approximately $25,000. Meeder Asset Management Inc. boosted its holdings in NIKE by 108.4% during the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock worth $29,000 after purchasing an additional 285 shares during the last quarter. Atlas Wealth LLC acquired a new position in NIKE during the first quarter worth $31,000. SHP Wealth Management bought a new position in NIKE in the fourth quarter valued at $41,000. Finally, Main Street Group LTD acquired a new stake in NIKE in the 1st quarter valued at $36,000. 64.25% of the stock is owned by institutional investors.

NIKE Company Profile

NIKE, Inc is a global athletic footwear, apparel, equipment and accessories company headquartered near Beaverton, Oregon. The company designs, develops, markets and sells products under the Nike, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE’s product portfolio includes athletic and casual footwear, performance and lifestyle apparel, sports equipment, accessories and digital fitness-related offerings. The company distributes its products through company-owned retail stores, digital platforms and wholesale partners, while also operating direct-to-consumer and membership programs.

The company traces its origins to 1964, when Phil Knight and Bill Bowerman founded Blue Ribbon Sports.