NIKE (NYSE:NKE) Stock Price Target Lowered at Royal Bank Of Canada

NIKE (NYSE:NKE) had its target price reduced by Royal Bank Of Canada from $45.00 to $40.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a “sector perform” rating on the footwear maker’s stock. Royal Bank Of Canada’s target price would suggest a potential upside of 9.90% from the company’s previous close.

Several other research firms have also commented on NKE. CICC Research decreased their price target on shares of NIKE from $58.00 to $44.80 and set a “neutral” rating for the company in a report on Thursday, July 2nd. JPMorgan Chase & Co. reissued a “sell” rating on shares of NIKE in a report on Monday, August 31st. BTIG Research restated a “buy” rating and issued a $55.00 target price on shares of NIKE in a research note on Wednesday, September 23rd. Needham & Company LLC reaffirmed a “hold” rating on shares of NIKE in a report on Thursday, June 4th. Finally, Robert W. Baird set a $44.00 price target on NIKE and gave the stock a “neutral” rating in a research report on Monday, September 14th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty-one have given a Hold rating and seven have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $46.62.

NIKE Stock Performance

NIKE stock opened at $36.40 on Tuesday. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36. NIKE has a 12 month low of $35.22 and a 12 month high of $76.97. The company has a fifty day moving average price of $39.44 and a two-hundred day moving average price of $43.34. The company has a market cap of $53.99 billion, a PE ratio of 17.41, a P/E/G ratio of 1.84 and a beta of 1.10.

NIKE (NYSE:NKE) last issued its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The company had revenue of $10.97 billion for the quarter, compared to analysts’ expectations of $10.85 billion. During the same period in the prior year, the company earned $0.14 earnings per share. The firm’s revenue was down 1.1% compared to the same quarter last year. Research analysts expect that NIKE will post 1.66 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Venkatesh Alagirisamy sold 3,671 shares of the business’s stock in a transaction that occurred 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 transaction, the chief operating officer directly owned 104,862 shares in the company, valued at approximately $3,941,762.58. The trade was a 3.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 that occurred 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 completion of the transaction, the executive vice president directly owned 78,121 shares of the company’s stock, valued at $2,936,568.39. This trade represents a 3.17% 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. Corporate insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of NKE. TCM Advisors LLC grew its position in shares of NIKE by 1.8% during the 4th quarter. TCM Advisors LLC now owns 11,218 shares of the footwear maker’s stock valued at $715,000 after acquiring an additional 200 shares during the period. FAS Wealth Partners Inc. raised its holdings in shares of NIKE by 4.2% in the 1st quarter. FAS Wealth Partners Inc. now owns 6,109 shares of the footwear maker’s stock worth $323,000 after purchasing an additional 249 shares during the period. Elevation Wealth Partners LLC lifted its stake in NIKE by 34.6% in the second quarter. Elevation Wealth Partners LLC now owns 989 shares of the footwear maker’s stock valued at $41,000 after purchasing an additional 254 shares during the last quarter. Midwest Professional Planners LTD. grew its holdings in NIKE by 1.5% during the first quarter. Midwest Professional Planners LTD. now owns 17,904 shares of the footwear maker’s stock valued at $946,000 after purchasing an additional 266 shares during the period. Finally, Advance Capital Management Inc. increased its position in NIKE by 7.1% in the first quarter. Advance Capital Management Inc. now owns 4,203 shares of the footwear maker’s stock worth $222,000 after buying an additional 279 shares during the last quarter. 64.25% of the stock is owned by institutional investors and hedge funds.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Jefferies expects a potential first-quarter earnings beat, citing stabilization in North America and wholesale, better inventory positioning and earlier-than-expected gross-margin expansion. Nike set for Q1 beat as margins improve, Jefferies says
• Positive Sentiment: New footwear launches and Nike’s “Sport Offense” strategy could help rebuild Sportswear momentum, although the payoff may take time. Will New Footwear Launches Help NIKE Rebuild Sportswear Momentum?
• Positive Sentiment: Options traders remain relatively bullish ahead of the earnings release, while some analysts argue the depressed valuation already reflects significant turnaround risks. Ahead of Nike Earnings, Here’s What Barchart Data Says Comes Next for NKE Stock
• Neutral Sentiment: Nike appointed Alexandre Arnault of LVMH to its board, adding luxury-brand and European consumer-market experience, but the financial impact is uncertain. Nike Brings Alexandre Arnault Onto Its Board
• Negative Sentiment: Analysts are lowering expectations before earnings. Piper Sandler moved to Neutral with a $38 target, while Evercore cut its target to $34, Deutsche Bank to $37 and HSBC to $40. The revisions reflect a slower recovery and tougher promotional conditions.
• Negative Sentiment: China remains a major weakness, with demand deteriorating and sales previously falling 12%; retailer order reductions are adding to concerns about near-term revenue. Nike Stock Hovers Near Annual Lows Amid Wave of Analyst Downgrades
• Negative Sentiment: Investors worry Nike’s shift away from direct-to-consumer sales is compressing margins, while e-commerce and social-media competition have weakened its traditional brand and shelf-space advantages. Nike’s Win Now Plan Is For Patient Investors Willing To Win Later

NIKE Company Profile

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.