NIKE (NYSE:NKE) Stock Sees Unusually High Call Option Buying

NIKE, Inc. (NYSE:NKE) was the recipient of unusually large options trading activity on Thursday. Stock investors purchased 181,646 call options on the company. This represents an increase of approximately 27% compared to the typical daily volume of 142,824 call options.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Investor rotation away from the AI trade is directing fresh interest toward heavily sold consumer brands, including Nike. The stock’s depressed valuation and substantial decline from its prior high may be attracting bargain hunters. Why Nike Stock Was Climbing Today
• Positive Sentiment: Nike is also benefiting from a broader rebound across beaten-down consumer discretionary stocks, with investors seeking opportunities outside the market’s most crowded trades. Nike Climbs as Beaten-Down Consumer Names Catch a Bid
• Neutral Sentiment: Management is restructuring the business and attempting to improve Nike’s customer value proposition after a strategic shift weakened performance. The turnaround could eventually support growth, but it is likely to take time and carries execution risk. Nike Is Restructuring the Business
• Negative Sentiment: Nike’s core business remains under pressure: sales declined about 4% in the latest fiscal quarter, while Greater China revenue fell 22%. Falling revenue and rising costs are making profit growth difficult. Nike Is Down 80% From Its High
• Negative Sentiment: The company’s turnaround outlook remains challenging, and disappointing guidance has added to bearish sentiment. Nike’s shares remain far below their previous high as investors wait for evidence that restructuring can restore sustainable growth. Why Is Everyone Talking About Nike Stock?
• Negative Sentiment: Income-focused investors are concerned that shrinking operations and weaker free cash flow may threaten Nike’s 24-year record of annual dividend increases when the company announces its next decision in November. Nike Dividend Outlook

NIKE Stock Up 5.5%

Shares of NKE traded up $1.95 during mid-day trading on Thursday, reaching $37.25. The company had a trading volume of 33,216,090 shares, compared to its average volume of 24,726,541. NIKE has a 52 week low of $31.97 and a 52 week high of $70.44. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.39 and a current ratio of 2.07. The firm has a 50-day moving average price of $37.66 and a 200 day moving average price of $41.75. The company has a market capitalization of $55.32 billion, a price-to-earnings ratio of 17.98, a price-to-earnings-growth ratio of 3.99 and a beta of 1.09.

NIKE (NYSE:NKE) last announced its quarterly earnings data 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. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The company had revenue of $11.21 billion during the quarter, compared to analyst estimates of $11.32 billion. During the same period in the previous year, the business earned $0.49 EPS. The firm’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. On average, sell-side analysts forecast that NIKE will post 1.26 EPS for the current year.

NIKE Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors 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 dividend yield of 4.4%. NIKE’s payout ratio is presently 78.85%.

Insiders Place Their Bets

In other news, EVP Philip McCartney sold 2,559 shares of NIKE stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total transaction of $96,192.81. Following the completion of the transaction, the executive vice president directly owned 78,121 shares in the company, valued at $2,936,568.39. This trade represents a 3.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $137,992.89. Following the sale, the chief operating officer owned 104,862 shares of the company’s stock, valued at $3,941,762.58. This trade represents a 3.38% decrease in their position. The SEC filing for this sale provides additional information. 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 owned by company insiders.

Institutional Investors Weigh In On NIKE

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Assenagon Asset Management S.A. grew its position in shares of NIKE by 92.3% during the 3rd quarter. Assenagon Asset Management S.A. now owns 4,789,274 shares of the footwear maker’s stock valued at $169,540,000 after acquiring an additional 2,298,400 shares during the period. Turtle Creek Wealth Advisors LLC raised its stake in shares of NIKE by 95.4% in the third quarter. Turtle Creek Wealth Advisors LLC now owns 9,780 shares of the footwear maker’s stock worth $346,000 after buying an additional 4,776 shares during the period. Fort Washington Investment Advisors Inc. OH grew its stake in shares of NIKE by 0.9% during the 3rd quarter. Fort Washington Investment Advisors Inc. OH now owns 848,687 shares of the footwear maker’s stock valued at $30,044,000 after acquiring an additional 7,249 shares during the period. B.A. Schrock Wealth Management Inc. bought a new stake in NIKE during the 3rd quarter worth approximately $1,153,000. Finally, Mitchell & Pahl Private Wealth LLC lifted its holdings in NIKE by 16.6% during the third quarter. Mitchell & Pahl Private Wealth LLC now owns 35,677 shares of the footwear maker’s stock valued at $1,263,000 after purchasing an additional 5,075 shares in the last quarter. Hedge funds and other institutional investors own 64.25% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on NKE. Freedom Broker upgraded shares of NIKE from a “hold” rating to a “buy” rating and dropped their target price for the company from $54.00 to $51.00 in a research note on Friday, October 2nd. HSBC lowered their price target on shares of NIKE from $48.00 to $40.00 and set a “hold” rating on the stock in a report on Monday, September 28th. Williams Trading lowered NIKE from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 2nd. Robert W. Baird cut their target price on shares of NIKE from $44.00 to $36.00 and set a “neutral” rating for the company in a research report on Friday, October 2nd. Finally, Sanford C. Bernstein reiterated an “outperform” rating and set a $45.00 price target on shares of NIKE in a research report on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twenty-one have given a Hold rating and ten have assigned a Sell rating to the company. According to MarketBeat.com, NIKE has an average rating of “Reduce” and an average target price of $41.07.

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.